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.
The numbers: Second-quarter net income dropped 57% to $40 million and earnings per share fell 59% to 38 cents, hurt by a higher share count. Revenue decreased 20% to $1.5 billion. Its gross margin remained steady at 30%, but its operating margin fell from 8% to 6%. A quick ratio of 0.5 indicates less-than-ideal liquidity. A debt-to-equity ratio of 1.6 indicates excessive leverage.
The stock: Avery Dennison is up 6% this year, trailing major U.S. indices. The company suffered from a $9 a share net loss in the first-quarter and halved its quarterly dividend. Shares pay a 2.3% dividend yield.The model upgraded Coeur d'Alene Mines (CDE) to "hold." The numbers: The company swung to a second-quarter profit of $12 million, or 17 cents a share, from a loss of $5.4 million, or 10 cents a share, in the year-earlier period. Revenue increased 46% to $73 million. Its gross margin dropped from 50% to 31% and its operating margin remained in negative territory. A quick ratio of 0.5 indicates less-than-ideal liquidity. But a debt-to-equity ratio of 0.1 demonstrates modest leverage. The stock: Coeur d'Alene Mines has surged 138% this year, outpacing major U.S. indices. The stock trades at a price-to-earnings ratio of 76, a premium to the market and precious metals peers. The company does not pay dividends. The model upgraded Covidien (COV), maker of health care products and devices, to "buy."
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV