Baytex, Chubb, Gentiv: Ratings Changes

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BOSTON (TheStreet) -- TheStreet.com's stock-rating model upgraded Baytex Energy Trust(BTE Quote), a fund that invests in oil and gas projects, to "buy."

The numbers: Second-quarter net income fell 20% to $27 million as earnings per share dropped 32% to 26 cents. Revenue declined 40% to $164 million. Its operating margin shrank from 39% to 13%, but its net margin increased from 13% to 17%. A quick ratio of 0.4 and $2 million of cash indicate a weak liquidity position. The debt-to-equity ratio is in conservative territory at 0.4.

The stock: Baytex has surged 88% this year, trouncing major U.S. indices. The stock trades at a cheap price-to-earnings ratio of 11 and offers a cash distribution yield of 5.8%. Cash distributions are taxed differently than dividends.

The model upgraded insurer Chubb(CB Quote) to "buy."

The numbers: Second-quarter revenue fell 3% to $3.3 billion, but net income advanced 18% to $551 million, or $1.54 a share. Its operating margin jumped from 18% to 23% and the net margin rose from 14% to 17%. The company has an adequate liquidity position with $2.7 billion of cash reserves. And a debt-to-equity ratio of 0.3 indicates restrained leverage.

The stock: Chubb is down 4% this year, underperforming major U.S. indices. The stock trades at a cheap price-to-earnings ratio of 11 and offers a fair 2.9% dividend yield, which is lower than the average of S&P 500 companies.

The model upgraded Cree(CREE Quote) to "buy." The company makes electrical components that involve light-emitting diodes, or LEDs.