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.
Dynatronics (DYNT - Get Report) designs, manufactures and markets physical medical products. It has been upgraded to a hold from a sell. The company's stock price has increased by 13.28% over the past 12 months, and looking ahead, its fundamentals will not have much impact in either direction. Dynatronics' net income grew to $220,000 in the fourth quarter of its fiscal year 2007, more than five times the $40,000 it reported a year earlier. Its gross profit margin of 46.10% is strong and has increased from the same quarter the previous year. The company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. Dynatronics had been rated a sell since May 2007.