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BOSTON (

TheStreet

) -- TheStreet.com's stock-rating model upgraded IT consultant

Amdocs

(DOX) - Get Report

to "buy."

The numbers

: Fiscal third-quarter net income decreased 15% to $86 million and earnings per share fell 9% to 42 cents, cushioned by a lower share count, as revenue declined 16% to $690 million. The operating margin hovered above 13% and the net margin remained steady at 12%. A quick ratio of 2.8 demonstrates ample liquidity and a debt-to-equity ratio of 0.1 indicates minimal leverage.

The stock

: Amdocs is up 33% in 2009, outpacing major U.S. indices. The stock trades at a fair price-to-earnings ratio of 16, but doesn't pay dividends.

The model upgraded

Jacobs Engineering Group

(JEC) - Get Report

to "buy."

The numbers

: Fiscal third-quarter earnings declined 13% to $95 million, or 76 cents a share, as revenue decreased 7% to $2.7 billion. The operating margin hovered above 5% and the net margin remained steady over 3%. Jacobs has a strong financial position, evident in its quick ratio of 1.9, $1 billion of cash reserves and minimal debt.

The stock

: Jacobs Engineering Group has fallen 3% in 2009, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 14, indicating a discount to the market, and doesn't pay dividends.

The model upgraded data-processing outsourcer

Paychex

(PAYX) - Get Report

to "buy."

The numbers

: Fiscal fourth-quarter earnings decreased 16% to $114 million, or 32 cents a share, as revenue dropped 5% to $496 million. The operating margin declined from 38% to 35% and the net margin descended from 26% to 23%. Paychex has an ideal financial position, with no debt or interest expenses and ample cash reserves, reflected by a quick ratio of 1.1.

The stock

: Paychex has advanced 8% in 2009, in line with the

Dow Jones Industrial Average

. The stock trades at a reasonable price-to-earnings ratio of 19 and offers a dividend yield around 4.4%, higher than the average of S&P 500 companies.

The model upgraded

Reynolds American

(RAI)

, maker of Camel cigarettes, to "buy."

The numbers

: Second-quarter revenue declined 4% to $2.3 billion, but net income rose 4% to $377 million and earnings per share climbed 5% to $1.29, helped by a lower share count. The operating margin rose from 27% to 29% and the net margin inched past 16%. A quick ratio of 0.7 indicates a less-than-ideal liquidity position. But a debt-to-equity ratio of 0.7 reflects conservative leverage and is lower than the industry average.

The stock

: Reynolds has ascended 14% in 2009, outpacing the Dow and

S&P 500 Index

. The stock trades at a reasonable price-to-earnings ratio of 16 and offers a huge 7.4% dividend yield.

The model upgraded

Varian Medical Systems

(VAR) - Get Report

, a maker of radiation therapy and x-ray systems, to "buy."

The numbers

: Fiscal third-quarter net income increased 15% to $85 million and earnings per share climbed 11% to 68 cents, restrained by a higher share count, as revenue grew marginally to $510 million. The operating margin rose from 18% to 21% and the net margin jumped from 15% to 17%. Varian has a strong financial position with $474 million of cash, translating to a quick ratio of 1.3, and just $33 million of debt.

The stock

: Varian is up 14% in 2009, outpacing the Dow and S&P 500. The stock trades at a fair price-to-earnings ratio of 16, but doesn't pay dividends.

-- Reported by Jake Lynch in Boston.