Comcast, Corning: Ratings Changes

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BOSTON (TheStreet) -- TheStreet.com's stock-rating model upgraded cable provider Comcast(CMCSK Quote) to "buy."

The numbers: Second-quarter net income grew 53% to $967 million, or 33 cents a share. Revenue increased 5% to $8.9 billion. Its gross margin remained steady at 58% and its operating margin was little changed at 21%. A quick ratio of 0.5 indicates weak liquidity. But the company has a reasonable debt load, reflected by its debt-to-equity ratio of 0.8.

The stock: Comcast has dropped 10% this year, trailing behind major U.S. indices. The stock trades at a price-to-earnings ratio of 15, a discount to the market and cable peers. The shares offer a 1.9% dividend yield.

The model downgraded Corning(GLW Quote), a maker of specialty glass for plasma and liquid crystal displays, to "hold."

The numbers: Second-quarter profit dropped 81% to $611 million, or 39 cents a share, as revenue declined 18% to $1.4 billion. Its gross margin decreased from 60% to 54% and its operating margin fell from 25% to 16%. Corning has a strong financial position, with $3 billion of cash and $2 billion of debt. A quick ratio of 2.5 and debt-to-equity ratio of 0.2 demonstrate fiscal prudence.

The stock: Corning has surged 56% this year, outpacing major U.S. indices. The stock trades at a price-to-earnings ratio of 14, a discount to the market and electronic component peers. The shares offer a 1.3% dividend yield.

The model downgraded fast-food chain Jack in the Box(JACK Quote) to "hold."

The numbers: Fiscal third-quarter earnings fell 35% to $20 million, or 31 cents a share, as revenue decreased 3% to $576 million. Its gross margin rose from 21% to 23% and its operating margin climbed from 7% to 8%. Just $12 million of cash reserves and a quick ratio of 0.2 demonstrate weak liquidity. A debt-to-equity ratio of 0.8 indicates reasonable leverage.