This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stock Upgrades, Downgrades From Ratings

The McGraw-Hill Companies (MHP) sells information services and products to the education, financial services and business information markets worldwide. It has been downgraded to hold from buy.

The company's third-quarter revenue increased 9.8% compared with the same period last year, exceeding the industry average of 8.0%. McGraw-Hill's earnings rose 26.4% to $1.34 per share from $1.06 a share over the same time frame. This continued a two-year pattern of EPS growth, a trend Ratings believes will continue.

The company's debt-to-equity ratio is somewhat low at 0.77, and less than the industry average, implying that there has been a relatively successful effort in the management of debt levels. Still, its quick ratio of 0.50 is very weak and demonstrates a lack of ability to pay short-term obligations. Investors have so far failed to pay attention to McGraw-Hill's earnings improvements, as its stock price has fallen by 35.6% in the last 12 months. While it is now cheaper (in proportion to its earnings over the past year) than most other stocks in its industry, we do not feel the stock is a good buy right now because of other concerns. McGraw-Hill had been rated a buy since December 2005.

Marriott International (MAR - Get Report) operates and franchises hotels and related lodging facilities worldwide. It has been downgraded to hold from buy.

The company's third-quarter revenue rose 12.5% compared with the same period last year, exceeding the industry average of 0.7%. Marriott's return on equity improved to 44.82% in the quarter compared with 27.17% in the same period last year. This is a sign of significant strength within the organization. However, the company has reported somewhat volatile earnings recently, and third-quarter EPS remained at 33 cents a share, unchanged from the same period last year. Ratings feels it is poised for earnings growth in the coming year. As a counter to these strengths, the company's weaknesses include generally poor debt management, poor profit margins and weak operating cash flow. Marriott's stock price has fallen by 28.38% in the past 12 months, and the hold rating indicates that we do not recommend additional investment at this time. Marriott had been rated a buy since December 2005.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SFD $0.00 0.00%
MAR $61.38 1.00%
TEO $15.51 1.44%
STI $32.84 -0.96%
AAPL $94.27 -0.76%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs