Kohl's, Sysco, Questar: Ratings Changes

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BOSTON (TheStreet) -- TheStreet.com's stock-rating model upgraded surgical-equipment maker Intuitive Surgical(ISRG Quote) to "buy."

The numbers: Second-quarter net income grew 22% to $62 million, or $1.62 a share, as revenue jumped 19% to $261 million. Its operating margin rose from 36% to 38% and its net margin inched up to 24%. A quick ratio of 3.1 demonstrates outstanding liquidity. The company has no debt.

The stock: Intuitive Surgical has advanced 76% this year, trouncing major U.S. indices. The stock trades at an expensive price-to-earnings ratio of 44, indicating lofty growth expectations. The company doesn't pay dividends.

The model upgraded department-store chain Kohl's(KSS Quote) to "buy."

The numbers: Second-quarter revenue rose 2% to $3.8 billion, but net income fell 2% to $231 million, or 75 cents. Its operating margin remained steady at 11% and its net margin dropped to 6%. The balance sheet holds just $1.4 billion of cash, amounting to a weak quick ratio of 0.6, but a debt-to-equity ratio of 0.3 indicates conservative leverage.

The stock: Kohl's is up 43% this year, beating major U.S. indices. The stock trades at a fair price-to-earnings ratio of 18. The company doesn't pay dividends.

The model upgraded oil and gas company Newfield Exploration(NFX Quote) to "hold."

The numbers: The company swung to a second-quarter net loss of $39 million, or 30 cents a share, from a loss of $244 million, or $1.89 a share, in the year-earlier quarter as revenue fell 59% to $287 million. The operating margin deteriorated from 55% to 15% and the net margin remained in negative territory. A quick ratio of 0.4 indicates a weak liquidity position, but a debt-to-equity ratio of 0.9 indicates reasonable leverage and is less than the industry average.