This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Estee Lauder, Acme Packet: Ratings Changes

BOSTON ( TheStreet) -- TheStreet.com's stock-rating model upgraded communications equipment maker Acme Packet (APKT) to "buy."

The numbers: Third-quarter net income surged 76% to $3.6 million and earnings per share doubled to 6 cents. Revenue grew 28% to $36 million. The company's gross margin decreased from 85% to 81%, but its operating margin rose from 9% to 14%. Acme Packet has an ideal financial position, with $159 million of cash and no debt.

The stock: Acme Packet has advanced 79% this year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 49, a premium to the market and communications equipment peers. The company doesn't pay dividends.

The model downgraded Duke Realty (DRE - Get Report), a real estate investment trust focused on office properties, to "sell."

The numbers: The company swung to a third-quarter loss of $305 million, or $1.44 a share, from a year-earlier profit of $32 million, or 8 cents. Revenue grew 32% to $328 million. The company's gross and operating margins fell into negative territory. Duke Realty holds just $156 million of cash and $3.9 billion of debt. A debt-to-equity ratio of 1.3 indicates excessive leverage.

The stock: Duke Realty is up 4% this year, trailing major U.S. indices. The company has posted losses for two consecutive quarters. The shares pay a 6% cash distribution yield.

The model upgraded Estee Lauder (EL - Get Report), a seller of make-up and fragrances, to "buy."

The numbers: Fiscal first-quarter net income almost tripled to $141 million, or 71 cents a share, as revenue declined 3% to $1.9 billion. The company's gross margin decreased from 77% to 76%, but its operating margin rose from 5% to 14%. A quick ratio of 1.2 demonstrates adequate liquidity. A debt-to-equity ratio of 0.8 indicates reasonable leverage.

The stock: Estee Lauder is up 43% this year, more than major U.S. indices. The stock trades at a price-to-earnings ratio of 27, a premium to the market and personal-product makers. The shares pay a 1.2% dividend yield.

The model upgraded insurer Erie Indemnity (ERIE - Get Report) to "buy."

The numbers: Third-quarter profit increased nine-fold to $40 million, or 69 cents a share, as revenue grew 19% to $313 million. The company's gross margin rose from 11% to 19%, and its operating margin jumped from 7% to 19%. Erie Indemnity has an ideal financial position, with $78 million of cash and no debt.

The stock: Erie Indemnity has fallen 6% this year, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 26, a premium to the market, but a discount to insurers. The shares pay a 5.1% dividend yield.

The model downgraded insurer Infiniti Property & Casualty (IPCC - Get Report) to "hold."

The numbers: Second-quarter net income increased 39% to $17 million and earnings per share surged 65% to $1.22, boosted by a lower share count. Revenue declined 9% to $226 million. The company's gross margin rose from 10% to 12%, and its operating margin increased from 9% to 12%. Infiniti has a stable financial position, with $209 million of cash and $200 million of debt.

The stock: Infiniti Property & Casualty is down 17% this year, trailing major U.S. indices. The stock trades at a price-to-earnings ratio of 26, a premium to the market, but a discount to insurance peers. The shares pay a 1.2% dividend yield.

-- Reported by Jake Lynch in Boston.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
EL $89.53 -0.10%
DRE $20.02 0.15%
ERIE $81.53 -0.35%
IPCC $77.00 -0.41%
AAPL $122.37 -0.50%

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,108.63 +0.06 0.00%
NASDAQ 5,128.7850 +17.0520 0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs