This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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

SunPower, Hartford, CNA: Ratings Changes

Stocks in this article: SPWRA CNA HIG

BOSTON ( TheStreet) -- As fourth-quarter financial data streams and the stock market digests 2010's uncertain economic footing, our stock-rating model is shifting its view on select companies. Here are three pertinent ratings changes.

3. The model downgraded solar-panel maker SunPower (SPWRA) to "sell." Investors are awaiting SunPower's fourth-quarter results.

The numbers: Third-quarter net income tumbled 48% to $13 million, and earnings per share fell 55% to 13 cents, hurt by a higher share count. Revenue increased 24% to $466 million. SunPower's operating margin narrowed from 13% to 7.4%. The company holds $550 million of cash, equating to a quick ratio of 1.5. Its 0.5 debt-to-equity ratio demonstrates conservative leverage.

The stock: SunPower recorded a 52-week low of $18.92 on Friday. The stock fell 46% during the past year, underperforming major U.S. indices and domestic competitor First Solar (FSLR - Get Report), which dropped 24% over the same period. SunPower shares are cheap relative to those of electrical-equipment peers based on projected earnings, book value and sales. They're expensive when considering cash flow.

2. The model upgraded property-and-casualty insurer CNA Financial (CNA - Get Report) to "hold."

The numbers: CNA Financial swung to a fourth-quarter profit of $246 million, or 81 cents a share, from a loss of $336 million, or $1.31, a year earlier. Revenue increased 56% to $2.4 billion. CNA's operating margin hit16%. Its 0.2 debt-to-equity ratio is less than the industry average, indicating restrained leverage.

The stock: CNA Financial soared 85% in the past year, outpacing major U.S. indices. The shares are cheap in comparison to those of insurance peers based on projected earnings, book value, sales and cash flow. They're costly when weighing trailing earnings. The stock has a beta, a measure of stock-market correlation, of 2.2, so it tends to magnify market swings.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

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