This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TSC Ratings' Updates: Diamond Foods

Shares have tumbled 77% over the past year, underperforming the S&P 500. Naturally, the overall market trend is bound to be a significant factor, 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 downgraded Steelcase (SCS - Get Report), which engages in the design, manufacture and marketing of office furniture, from hold to sell. This rating is driven by the company's deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Net income decreased from $30.6 million in the year-ago quarter to -$65.7 million in the most recent quarter. ROE also decreased, which could signal weakness in the corporation. Steelcase's gross profit margin of 30.5% has decreased from the year-ago quarter, and its net profit margin of -10% is below the industry average. Net operating cash flow fell to -$8 million in the most recent quarter.

Shares have tumbled by 54.7% over the past year, underperforming the S&P 500, and EPS were also down compared with the year-ago quarter. Naturally, the overall market trend is bound to be a significant factor, 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.

Other ratings changes include MetroGAS (MGS), downgraded from hold to sell, and NetScout (NTCT - Get Report), downgraded from buy to hold.

All ratings changes from April 1 are listed below.

Ticker
Company
Current
Change
Previous
CASY
Casey's General Stores
BUY
Upgrade
HOLD
DMND
Diamond Foods
BUY
Upgrade
HOLD
EDNE
Eden Energy
SELL
Initiated
FREE
FreeSeas
HOLD
Upgrade
SELL
GIII
G-III Apparel Group
SELL
Downgrade
HOLD
HIMX
Himax Technologies
HOLD
Upgrade
SELL
MGS
MetroGAS
SELL
Downgrade
HOLD
NNBR
NN
SELL
Downgrade
HOLD
NTCT
NetScout Systems
HOLD
Downgrade
BUY
OPY
Oppenheimer Holdings
SELL
Downgrade
HOLD
SBGI
Sinclair Broadcast Group
SELL
Downgrade
HOLD
SCS
Steelcase
SELL
Downgrade
HOLD

Each business day, TheStreet.com Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stock's total return potential over a 12-month period, including both price appreciation and dividends. Buy, hold or sell ratings designate how the Ratings group expects these stocks to perform against a general benchmark of the equities market and interest rates.

While the ratings model is quantitative, it uses both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and company earnings forecasts. Objective elements include volatility of past operating revenue, financial strength and company cash flows.

However, the rating does not incorporate all of the factors that can alter a stock's performance. For example, it doesn't always factor in recent corporate or industry events that could affect the stock price, nor does it include recent technology developments and competitive dynamics that may affect the company.

For those reasons, we believe a rating alone cannot tell the whole story, and that it should be part of an investor's overall research.

Note: Our quantitative model makes stock recommendations based on GAAP figures that may differ materially from data as reported by the companies themselves. As a result, rating changes are occasionally driven by so-called nonrecurring items. As always, we urge readers to use TSC Ratings' reports in conjunction with additional information to construct their opinions on the value that should be placed on any given stock.

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CASY $85.11 -0.80%
DMND $29.83 -0.27%
HIMX $6.16 -0.96%
NTCT $43.66 -1.11%
OPY $23.84 1.92%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs