First Solar, Home Depot: Ratings Changes

The stock: First Solar has dropped 12% this year, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 17, a discount to the market and electrical equipment peers. First Solar doesn't pay dividends.

The model downgraded Home Depot(HD) to "hold."

The numbers: Third-quarter profit decreased 9% to $689 million, or 41 cents a share, as revenue fell 8% to $16 billion. Home Depot's gross margin remained steady at 34%, but its operating margin expanded from 7% to 8%. A quick ratio of 0.3 demonstrates poor liquidity. A debt-to-equity ratio of 0.5 reflects conservative leverage.

The stock: Home Depot has increased 17% this year, matching the Dow, but trailing the S&P 500. The stock trades at a price-to-earnings ratio of 20, a discount to the market and specialty retailers. The shares offer a 3.3% dividend yield.

The model downgraded oil and gas producer Noble Energy(NBL) to "hold."

The numbers: Third-quarter profit plummeted 89% to $106 million, or 61 cents a share, as revenue dropped 44% to $596 million. Noble Energy's gross margin decreased from 79% to 73%, and its operating margin deteriorated from 51% to 25%. A quick ratio of 1.5 indicates adequate liquidity. A debt-to-equity ratio of 0.4 reflects conservative leverage.

The stock: Noble Energy has climbed 31% this year, more than the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 72, a premium to the market and oil and gas peers. The shares offer a 1.1% dividend yield.

-- Reported by Jake Lynch in Boston.

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