Western Union, U.S. Steel: Ratings Changes

The stock: Teleflex has inched up 1% this year, trailing major U.S. indices. The stock trades at a price-to-earnings ratio of 16, a discount to the market and health care equipment peers. Shares pay a 2.7% dividend yield.

The model downgraded money-transfer company Western Union(WU) to "hold."

The numbers: Third-quarter net income decreased 25% to $181 million and earnings per share dropped 21% to 26 cents, cushioned by a lower share count. Revenue declined 5% to $1.3 billion. The company's gross margin was unchanged at 46% and its operating margin remained steady at 27%. The company has adequate liquidity, evident in its $1.6 billion of cash. A debt-to-equity ratio of 9.3 indicates excessive leverage.

The stock: Western Union has advanced 29% this year, more than the Dow Jones Industrial Average and S&P 500 Index. The stock trades at a price-to-earnings ratio of 15, a discount to the market and data processor and outsourced service peers.

The model downgraded U.S. Steel(X) to "sell."

The numbers: The company swung to a third-quarter loss of $303 million, or $2.11 a share, from a profit of $919 million, or $7.79 a share, in the year-earlier period. The company's gross and operating margins descended into negative territory. A quick ratio of 1.4 indicates sufficient liquidity. A debt-to-equity ratio of 0.7 demonstrates reasonable leverage.

The stock: U.S. Steel has fallen 5% this year, underperforming major U.S. indices. The company has posted losses for three consecutive quarters. The stock pays a 0.6% dividend yield.

-- Reported by Jake Lynch in Boston.

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