Stock Upgrades, Downgrades From TheStreet.com Ratings

Each weekday, TheStreet.com Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stock's total return potential over a 12-month period, including both price appreciation and dividends. Buy, hold or sell ratings designate how the Ratings group expects these stocks to perform against a general benchmark of the equities market and interest rates.

While the ratings model is quantitative, it uses both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and company earnings forecasts. Objective elements include volatility of past operating revenue, financial strength and company cash flows.

Brightpoint(CELL Quote) distributes wireless devices and accessories, as well as customized logistic services to the wireless industry. It has been upgraded to a buy from a hold. The company's revenue grew 54.8% in the second quarter over the year-earlier period, dwarfing the industry average of 1.2%; net income grew 114.6% to $17.69 million from $8.24 million over the same period. Brightpoint also has a largely solid financial position with reasonable debt levels by most measures. Those strengths outweigh the company's low profit margins. Brightpoint had been rated a hold since July 2006.

Business intelligence and performance management software provider Cognos(COGN Quote) has been upgraded to a buy from a hold. The company shows compelling growth in net income, and has no debt to speak of, a relatively favorable sign. The stock price has increased 18.25% over the past year, reflecting both the market's overall trend during that period and the company's robust EPS growth.

While even the best stocks can fall in an overall down market, in any other environment, Cognos' stock still has good upside potential. Strengths like these outweigh the company's weak operating cash flow. Cognos had been rated a hold since June 2007.