This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

J. Crew, Makita, Lorillard: Ratings Changes

Stocks in this article: JCG MKTAY LO

BOSTON ( TheStreet) -- U.S. stock-market indices gained Tuesday, but our ratings model soured on a few closely watched names. Here are three relevant downgrades.

3.'s stock-rating model downgraded specialty retailer J. Crew Group (JCG) to "hold."

The numbers: Third-quarter profit more than doubled to $44 million, or 67 cents a share, as revenue increased 14% to $414 million. J. Crew's operating margin widened from 9% to 18%. The company possesses a liquid balance sheet, with $247 million of cash and $99 million of debt. The model gives J. Crew a financial-strength score of 7 out of 10 and a growth score of 7.7. Its volatility score of 3.1 weakens its overall ranking.

The stock: J. Crew soared 311% during the past year, outperforming major U.S. indices and earning a performance score of 7.2. However, the stock has fallen 8.8% during the past month, in anticipation of fourth-quarter earnings. The shares are overpriced in comparison to those of specialty retail peers based on all of our valuation measures, including trailing earnings, projected earnings, book value, sales and cash flow.

2. The model downgraded power-tool maker Makita (MKTAY), which reported quarterly results Friday, to "hold."

The numbers: Fiscal third-quarter profit tumbled 42% to $63 million, or 46 cents a share, as revenue fell 36% to $627 million. Makita's operating margin narrowed from 17% to 14%. The company has an admirable financial position, with $1 billion of cash and $10 million of debt. The model gives Makita a financial strength score of 8.2 out of 10, higher than the "buy"-list average.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs