TSC Ratings' Updates: Amazon.com

We've downgraded Helmerich & Payne(HP Quote), which engages in the contract drilling of oil and gas wells in the U.S. and internationally, from buy to hold. Strengths include its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. Weaknesses include a decline in the stock price during the past year and disappointing return on equity.

Revenue rose by 24% since the same quarter a year ago, slightly outpacing the industry average of 18% and boosting EPS. The company's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying very successful management of debt levels. H&P also has a quick ratio of 1.82, which demonstrates the ability of the company to cover short-term liquidity needs.

ROE has slightly decreased from the same quarter one year prior, implying a minor weakness in the organization. On the basis of ROE, H&P underperforms the industry average but outperforms the S&P 500. Shares are down 12.01%, reflecting, in part, the market's overall decline, but we don't see anything in the company's numbers to help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

We've downgraded Universal Health Services(UHS Quote) from buy to hold. Strengths include its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. Weaknesses include poor profit margins, a decline in the stock price during the past year and disappointing return on equity.