TSC Ratings' Updates: Texas Instruments

Downgraded to hold from buy Friday was Range Resources(RRC Quote). Range is an independent oil company that explores for the development and acquisition of oil and gas properties. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

Compared with its closing price of one year ago, RRC's share price has jumped by 42.68%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level that is now relatively expensive compared with the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.

The gross profit margin for Range Resources is rather high; currently it is at 63.5%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, RRC's net profit margin of 23% significantly underperformed when compared with the industry average.

The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared with that of the S&P 500 and the oil, gas & consumable fuels industry. The net income has significantly decreased by 153.9% when compared with the same quarter one year ago, falling from $64.21 million to -$34.58 million.