First Solar, Home Depot: Ratings Changes

BOSTON (TheStreet) -- TheStreet.com's stock-rating model upgraded telecommunications company BCE(BCE) to "buy."

The numbers: Third-quarter profit more than doubled to $584 million, or 72 cents a share, as revenue increased marginally to $4.5 billion. BCE's gross margin declined from 72% to 70%, but its operating margin was unchanged at 22%. A quick ratio of 0.6 indicates weak liquidity. A debt-to-equity ratio of 0.7 is below the industry average, indicating conservative leverage.

The stock: BCE has risen 26% this year, more than the Dow Jones Industrial Average and S&P 500 Index. The stock trades at a price-to-earnings ratio of 16, a discount to the market, but a premium to telecom peers. The shares offer a 5.9% dividend yield.

The model upgraded coal miner Peabody Energy(BTU) to "buy."

The numbers: Third-quarter profit plunged 71% to $107 million, or 41 cents a share, as revenue dropped 12% to $1.7 billion. Peabody's gross margin decreased from 35% to 24%, and its operating margin narrowed from 26% to 14%. A quick ratio of 0.9 indicates less-than-ideal liquidity. A debt-to-equity ratio of 0.7 reflects conservative leverage.

The stock: Peabody Energy has doubled this year, outpacing major U.S. indices. The stock trades at a price-to-earnings ratio of 20, a discount to the market and fuel peers. The shares offer a 0.5% dividend yield.

The model upgraded panel-maker First Solar(FSLR) to "buy."

The numbers: Third-quarter net income increased 55% to $153 million and earnings per share climbed 49% to $1.79, restrained by a higher share count. Revenue grew 38% to $481 million. First Solar's gross margin declined from 61% to 58%, and its operating margin fell from 37% to 33%. The company has $524 million of cash and $193 million of debt.