NEW YORK (
) -TheStreet Ratings' stock model downgraded
to 'Hold' from 'Buy'. The net income at Apollo has significantly decreased by 26.1% when compared to the same quarter one year ago, falling from $125.35 million to $92.61 million.
TheStreet Ratings released rating changes on nine additional U.S. common stocks for June 25, 2010. In all, five stocks have been downgraded and five stocks have been upgraded by our stock model.
The model also saw as a bad sign the net operating cash flow of Apollo Group decreasing to $29.6 million or 68.8% compared to the same quarter last year. The shares of this and other private for-profit educational institutions are coming under pressure this week as the chairman of the U.S. Senate Health, Education, Labor, and Pensions Committee, Iowa's Tom Harkin, calls for more oversight and regulation of the industry considering that the industry absorbed $26.5 billion in federal aid in 2009, a 476% increase since 2000.
On the other hand, climbing up to 'Buy' from 'Hold' is
. Our model favors companies like Covance that have high cash flow growth rates and little to no debt.
This pharmaceutical & biotechnology, research & development company is expected to earn $0.52 per share for the quarter ending June 30 and $0.64 in September. The model, which is influenced by price movements of the shares, recognizes some market bullishness in Covance ahead of the quarterly results.
-- Reported by Kevin Baker in Jupiter, Fla.
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Kevin Baker became the senior financial analyst for TheStreet Ratings upon the August 2006 acquisition of Weiss Ratings by TheStreet.com, covering mutual funds. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.