TheStreet.com Ratings: Stock Upgrades, Downgrades

Each weekday, TheStreet.com Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Buy, hold or sell ratings designate how the Ratings group expects these stocks to perform against a general benchmark of the equities market and interest rates.

While the ratings model is quantitative, it uses both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenue, financial strength and company cash flows.

Some recent rating changes are highlighted below.

Adams Respiratory Therapeutics(ARXT Quote) has been upgraded to a hold from a sell. The company develops and markets over-the-counter and prescription treatments for respiratory disorders. Adams' revenue jumped 74.8% in the second quarter of fiscal 2007 compared with the same quarter a year earlier. The revenue growth appears to have trickled down to the company's bottom line, improving earnings per share during that same time period. Adams has no debt to speak of and appears to be able to cover short-term liquidity needs. The stock had been rated a sell since August 2006. ...