TSC Ratings' Updates: Chesapeake Energy

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 Tuesday, May 5.

We've upgraded TD Ameritrade Holding(AMTD Quote) from hold to buy, driven by its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

The 0.5 debt-to-equity ratio is below the industry average. TD Ameritrade's 48.9% gross profit margin has decreased from the same period last year. Its net profit margin of 25% outperformed the industry average. Revenue fell 24.1% since the year-ago quarter, and EPS are down 25.8%. We think the company is likely to report a decline in earnings in the coming year. Return on equity also fell compared with the year-ago quarter. ...