TSC Ratings' Updates: Yahoo!

AstraZeneca's gross profit margin of 88.3% is very high, though it has decreased since the year-ago period. The company's net profit margin of 21.90% compares favorably with the industry average.

We've downgraded electronics company Philips Electronics(PHG) from hold to sell, driven by its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Net income decreased from $2,140.8 million in the year-ago quarter to -$2,066.9 million, significantly underperforming the S&P 500 and the industrial conglomerates industry. Return on equity also greatly decreased, and revenue fell 20.2% EPS declined by 187.4% compared with the year-ago quarter. The company has reported a trend of declining earnings per share over the past two years, but the consensus estimate suggests that this trend should reverse in the coming year.

Shares are down 50.1% on the year, underperforming the S&P 500. Naturally, the overall market trend is bound to be a significant facto, and in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

We've upgraded Scotts Miracle-Gro(SMG), which engages in the manufacture, marketing and sale of lawn and garden care products, from sell to hold. Strengths include its increase in net income, revenue growth and good cash flow from operations. However, we also find weaknesses including generally poor debt management, disappointing return on equity and poor profit margins.