Stock Upgrades, Downgrades From TheStreet.com Ratings

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 company earnings forecasts. Objective elements include volatility of past operating revenue, financial strength and company cash flows.

Online travel company Expedia(EXPE Quote) has been upgraded to a buy from a hold. Its third-quarter earnings rose 88.23% year over year to 32 cents per share from 17 cents a share. This continued a pattern of positive EPS growth over the previous year. During the past fiscal year, Expedia increased its bottom line, earning 70 cents a share vs. 30 cents per share the year before. This year, the market expects earnings of $1.23 per share. On the back of strong earnings growth, its stock price has grown by 88.23% in the last 12 months. And while almost any stock can fall in a broad market decline, Expedia should continue to move higher despite having enjoyed a nice gain in the past year. Although the company may harbor some minor weaknesses, TheStreet.com Ratings feel they are unlikely to have a significant impact on results. Expedia had been rated a hold since November 2006.