The following ratings changes were generated on Monday, Dec. 22.
We've upgraded AthenaHealth (ATHN), which provides Internet-based business services for physician practices, from sell to hold. Strengths include its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, we also find weaknesses including premium valuation and a decline in the stock price during the past year.
Revenue rose by 35.4% since the same quarter a year ago, outperforming the industry average of 3.7% growth and boosting earnings per share. AthenaHealth's debt-to-equity ratio is very low at 0.1 and is currently below that of the industry average, implying very successful management of debt levels. The company also maintains a quick ratio of 4, which clearly demonstrates its ability to cover short-term cash needs.
Shares are down 14.6% on the year, in part reflecting the market's overall decline, but the stock is still selling for more than most others in its industry. We don't see anything in the company's numbers that may help reverse the decline experienced over the past 12 months.We've downgraded Copel-CIA (ELP), which generates, transmits and distributes electricity in Brazil, from buy to hold. Strengths include its largely solid financial position with reasonable debt levels by most measures, notable return on equity and attractive valuation levels. However, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins. Copel's debt-to-equity ratio is very low at 0.2 and is currently below that of the industry average, implying very successful management of debt levels. The company's 1.6 quick ratio demonstrates its ability of the company to cover short-term liquidity needs. Return on equity has improved slightly, which can be construed as a modest strength in the organization. On the basis of ROE, Copel outperforms the industry and the S&P 500.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV