TSC Ratings' Updates: Darden Restaurants

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 15.

We've downgraded Commerce Bancshares(CBSH Quote), which provides various banking services to individuals and businesses, from buy to hold. Strengths include the company's expanding profit margins and notable return on equity. However, we also find weaknesses including a decline in the stock price during the past year, feeble growth in the company's earnings per share and premium valuation.

Commerce's gross profit margin of 69.4% has decreased from the same period last year. Revenue fell by 15.9%. EPS also declined, and we expect the company's two-year pattern of declining EPS to continue in the coming year. Return on equity fell slightly from the year-ago quarter, implying a minor weakness in the organization. ...