TSC Ratings' Updates: Diamond Foods

TSC Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking solid outperformance on a total return basis.

The following ratings changes were generated on Wednesday, April 1.

We've upgraded convenience store operator Casey's General Stores(CASY Quote) from hold to buy, driven by its growth in earnings per share, increase in net income, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

EPS have improved by 7.7% in the most recent quarter compared with the year-ago quarter, and we feel that the company's two-year pattern of positive EPS growth should continue. Net income increased by 7.6%, from $13 million in the year-ago quarter to $14 million. Net operating cash flow increased by 72.5% to $32.5 million. ...