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
TheStreet Open House

J. Crew, Makita, Lorillard: Ratings Changes

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

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
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!
MKTAY $52.62 0.00%
LO $68.19 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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