NEW YORK ( TheStreet) -TheStreet Ratings' stock model downgraded Chicos FAS (CHS - Get Report) to 'Hold' from 'Buy'. Shares of this women's specialty apparel company have declined more than 37% since late April approaching a new 52-week low.
TheStreet Ratings released rating changes on seven additional U.S. common stocks for July 1, 2010. In all, four stocks have been downgraded and four stocks have been upgraded by our stock model.
At Chicos FAS, first quarter revenue growth of 17.3% as well as earnings rebounding to a quarterly profit of $0.39 per share from a loss of $0.11 per share last year look fine. Making money is always in fashion. As long as a material reason for the share price decline is not revealed in short order, the shares may be approaching undervalued territory.
Of the four upgrades today, only Pizza Inn (AYI) changed to a recommendation of 'Buy'. While margins in selling pizza can be thinner than a New York slice, Pizza Inn increased its quarterly gross profit margin over last year reaching 15.6%. The company is executing on its Pizza Inn Express strategy embedding their restaurants within convenience stores. The latest of its 87 Texas locations opened late last month in Neil's Convenience Store in Muenster, TX.-- Reported by Kevin Baker in Jupiter, Fla.
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