TSC Ratings' Updates: Texas Capital Bancshares

Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 46.25%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 26.47% compared with the year-earlier quarter.

Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, HBAN is still more expensive than most of the other companies in its industry.

Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared with other companies in the commercial banks industry and the overall market on the basis of return on equity, HBAN has underperformed against that of the industry average and is significantly less than that of the S&P 500.

HBAN has been rated a sell since January 22, 2008.

CGG Veritas(CGV Quote) has been downgraded from buy to hold. Compagnie Generale de Geophysique-Veritas S.A., together with its subsidiaries, provides geophysical services worldwide. Our recommendation is based on the company's strong revenue growth, notable returns, and sustainable earnings growth. These factors are further supported by strategic acquisitions and strong guidance. However, the company faces downside risks from Metrolog integration-related challenges and a declining operating margin.

Oil and gas equipment services provider, CGG Veritas's first quarter fiscal year 2007 revenue surged 16.7% to $924.59 million from $792.01 million a year ago. The increase was driven by impressive performance from the services segment along with strong growth in Europe, Africa, and the Middle East markets. Geographically, revenue from Europe, Africa, and Middle East operation soared 66.7%, whereas the Services segment revenue rose 15.7%, driven by strong contract performance and an 84.0% fleet utilization rate.