Marsh & McLennan, Hecla Mining: Ratings Changes

BOSTON (TheStreet) -- TheStreet.com's stock-rating model upgraded Hecla Mining(HL), a miner of silver, gold, lead and zinc, to "hold."

The numbers: The company swung to a third-quarter profit of $26 million, or 9 cents a share, from a loss of $3.8 million, or 5 cents a share, in the year-earlier period. Revenue grew 39% to $95 million. Hecla's gross margin rose from 30% to 56% and its operating margin jumped from 2% to 31%. The company has an admirable financial position, with $87 million of cash and just $44 million of debt.

The stock: Hecla Mining has advanced 78% this year, beating major U.S. benchmarks. The company posted losses in three of its four previous quarters. Hecla doesn't pay dividends.

The model upgraded Lennox International(LII), a maker of heating, ventilation, air conditioning and refrigeration products, to "buy."

The numbers: Third-quarter net income decreased 43% to $31 million and earnings per share dropped 39% to 59 cents. Revenue declined 22% to $750 million. The company's gross margin rose from 28% to 30%, but its operating margin fell from 10% to 8%. A quick ratio of 0.8 indicates less-than-ideal liquidity. A debt-to-equity ratio of 0.4 is below the industry average, demonstrating restrained leverage.

The stock: Lennox International has risen 14% this year, matching the Dow Jones Industrial Average. The stock trades at a price-to-earnings ratio of 33, a premium to the market, but a discount to building products peers.

The model upgraded insurance, consulting and investment management company Marsh & McLennan(MMC) to "buy."

The numbers: Marsh & McLennan swung to a third-quarter profit of $221 million, or 40 cents a share, from a loss of $8 million, but a per share profit of 3 cents, in the year-earlier period. Revenue decreased 10% to $2.5 billion. The company's gross margin increased from 9% to 15% and its operating margin rose from 6% to 11%. A quick ratio of 1.3 indicates adequate liquidity. A debt-to-equity ratio of 0.6 reflects conservative leverage.