TSC Ratings' Updates: General Electric

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 24.

We've upgraded Computer Task Group(CTGX Quote) from hold to buy, driven by its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Computer Task Group has no debt to speak of and a quick ratio of 1.6, demonstrating its ability to cover short-term liquidity needs. The company's return on equity has improved slightly compared with the year-ago quarter, which can be construed as a modest strength in the organization, outperforming the S&P 500 but underperforming the industry average. Earnings per share were flat in the most recent quarter compared with the same quarter last year. During the past fiscal year, EPS increased to 50 cents vs. 26 cents in the prior year, but we feel the company is likely to report a decline in earnings in the coming year to 35 cents a share. ...