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.
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BJ's Restaurants (BJRI - Get Report) owns and operates casual dining restaurants in the U.S. It has been downgraded to hold from buy. The company's third-quarter revenue grew by 30.1% compared with the same period last year, outpacing the industry average of 0.6%. In addition, BJ's has no debt to speak of, which we consider to be a relatively favorable sign. It also maintains a quick ratio of 1.82, which demonstrates the company's ability to cover short-term liquidity needs. BJ's stock is reasonably valued. As a counter to these strengths, weaknesses include disappointing return on equity, poor profit margins and weak operating cash flow, and the company's stock price has fallen by 17.98% in the last 12 months. BJ's had been rated buy since December 2005.