Ratings Changes: Disney, Unum, Bunge

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BOSTON (TheStreet) -- TheStreet.com's stock-picking model upgraded Bunge(BG Quote) to "buy." Bunge sells agriculture, fertilizer and food products.

The numbers: Second-quarter revenue fell 24% to $11 billion as net income plummeted 58% to $313 million and earnings per share dropped 61% to $2.13. The company's operating margin fell from 6% to 1% and the net margin declined from 5% to 3%. Bunge has a weak liquidity position, with just $489 million of cash and a quick ratio of 0.3. But a debt-to-equity ratio of 0.7 indicates reasonable leverage. The company is poised to benefit from a rebound in commodities prices.

The stock: Bunge has climbed 36% this year, beating major U.S. indices. The stock is trading at a price-to-earnings ratio of 20, a premium to the market, and offers a modest 1% dividend yield.

The model upgraded software company CA(CA Quote) to "buy."

The numbers: Fiscal first-quarter revenue and net income declined marginally to $1.1 billion and $195 million, respectively, as earnings per share remained flat at 37 cents. CA's operating margin increased from 30% to 32% and the net margin climbed from 18% to 19%. The company has an adequate liquidity position, reflected by $2.9 billion of cash and a quick ratio of 1. A debt-to-equity ratio of 0.4 indicates modest leverage.

The stock: CA has gained 11% this year, beating the Dow Jones Industrial Average and S&P 500 Index, but underperforming the tech-heavy Nasdaq. The stock is trading at a fair price-to-earnings ratio of 16, but offers a dividend yield below 1%.