TSC Ratings' Updates: Microsoft

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 Monday, June 8.

We've upgraded Computer Sciences(CSC Quote) from hold to buy, driven by its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

Net income increased by 110.4% compared with the same quarter a year ago, from $181.7 million to $382.3 million. The company's debt-to-equity ratio of 0.8 is below the industry average, and its quick ratio of 1.5 demonstrates an ability to cover short-term liquidity needs. Return on equity increased greatly compared with the year-ago quarter, a signal of significant strength within the corporation. Net operating cash flow increased 25.3% to $1.1 billion. ...