TheStreet.com Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking total return performance.
TheStreet.com's stock-rating model upgraded Amtrust Financial Services (AFSI) to "buy."
The numbers: Second-quarter net income increased 2% to $27 million, or 45 cents a share. Revenue grew 5% to $183 million. Its gross margin dropped from 32% to 25% and its operating margin fell from 23% to 20%. Amtrust is adequately capitalized, with $447 million of cash. But a debt-to-equity ratio of 1.2 indicates higher-than-ideal leverage.
The stock: Amtrust has advanced 11% this year, outperforming the Dow Jones Industrial Average, but underperforming the S&P 500 Index. The stock trades at a price-to-earnings ratio of 9, indicating a sizable discount to the market and insurance peers, and offers a 1.9% dividend yield.The model upgraded racetrack owner Churchill Downs (CHDN) to "buy." The numbers: Second-quarter profit rose 5% to $31 million, or $2.20 a share, as revenue increased marginally to $180 million. Its gross margin fell from 40% to 38% and its operating margin decreased from 28% to 27%. Churchill has a weak liquidity position, evident in its quick ratio of 0.5. But its balance sheet holds minimal debt. The stock: Churchill Downs has fallen 4% this year, trailing major U.S. indices. The stock trades at a price-to-earnings ratio of 22, which is a slight premium to the market, but equal to gaming peers. The company pays a 1.3% dividend yield. The model upgraded aerospace and defense company Rockwell Collins (COL) to "buy." The numbers: Fiscal third-quarter net income fell 17% to $145 million, or 91 cents a share. Revenue declined 9% to $1.1 billion. Its gross margin decreased from 33% to 32% and its operating margin slid from 21% to 20%. A quick ratio of 0.8 reflects less-than-ideal liquidity, but a debt-to-equity ratio of 0.4 indicates a sound capital structure.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV