TSC Ratings' Updates: VMware

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, June 10.

We've upgraded Ferellgas Partners(FGP Quote) from hold to buy, driven by its respectable return on equity which we feel is likely to continue. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Return on equity increased greatly compared with the same quarter last year, a signal of strength within the corporation. Revenue fell by 21.2%, though it outperformed the industry average of a 22.8% drop. EPS also decreased, by 12.7%, though we anticipate that the company's yearlong pattern of declining EPS will reverse over the coming year. Net income decreased by 6.5% to $32.9 million since the year-ago quarter but outperformed the S&P 500 and the gas utilities industry average. Ferrellgas' gross profit margin of 16.9% has managed to increase from the same period last year. The net profit margin of 5.9% trails the industry average. ...