American Greetings, Alliant Techsystems: Ratings Changes

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BOSTON (TheStreet) -- TheStreet.com's stock-rating model upgraded greeting-card designer American Greetings(AM Quote) to "hold."

The numbers: Fiscal second-quarter profit multiplied 10-fold to $23 million, or 58 cents a share, as revenue fell 7% to $349 million. The company's gross margin rose from 58% to 59% and its operating margin climbed from negative territory to 8%. A quick ratio of 0.4 demonstrates weak liquidity. A debt-to-equity ratio of 0.6 indicates reasonable leverage.

The stock: American Greetings has advanced 201% this year, beating major U.S. indices. The company posted sizable losses in its third and fourth quarters. Shares pay a 2.1% dividend yield.

The model downgraded aerospace and defense contractor Alliant Techsystems(ATK Quote) to "hold."

The numbers: Fiscal first-quarter net income jumped 28% to $69 million and earnings per share rose 35% to $2.09. Revenue increased 8% to $1.2 billion. Alliant's gross margin ascended from 21% to 23% and its operating margin increased from 10% to 11%. A quick ratio of 1.2 reflects adequate liquidity. A debt-to-equity ratio of 1.8 indicates excessive leverage.

The stock: Alliant has fallen 11% this year, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 16, a discount to the market, but a premium to aerospace and defense peers. The company doesn't pay dividends.

The model downgraded fertilizer company Intrepid Potash(IPI Quote) to "sell."

The numbers: Second-quarter profit plummeted 61% to $14 million, or 19 cents a share, as revenue fell 30% to $73 million. Intrepid's gross margin increased from 59% to 61%, but its operating margin fell from 50% to 45%. The company has an ideal financial position, with $119 million of cash and no debt.