TSC Ratings' Updates: Raytheon

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 Thursday, June 4.

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

Revenue increased by 1.6% since the year-ago quarter, though EPS declined by 37%, and we feel the company is likely to report an earnings decline in the coming year. Return on equity rose from the same quarter a year prior, a sign of strength within the company. Federated's debt-to-equity ratio of 0.4 is below the industry average, though the quick ratio of 0.5 implies difficulty in paying short-term obligations. ...