Stock Upgrades, Downgrades From TheStreet.com Ratings

Each business day, 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.

Brown Shoe(BWS Quote), a footwear retailer, has been downgraded to hold. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and expanding profit margins. However, Brown Shoe has also been struggling with disappointing return on equity, weak operating cash flow and a generally disappointing stock performance.

Third-quarter net income totaled $27 million, or 61 cents a share, up slightly from $26.9 million, or 62 cents a share, a year ago. Excluding items, net income totaled 67 cents a share. Revenue slipped 5% to $645.5 million. Brown Shoe also reduced its 2007 guidance. Return on equity is significantly below the industry average. Brown Shoe had been rated buy since December 2005.