Occidental, Teck, Hot Topic: Ratings Upgrades

Foot Locker, Hot Topic, Teck Resources and Occidental Petroleum were upgraded to "buy" at TheStreet.
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BOSTON (TheStreet) -- TheStreet's stock model upgraded the following stocks to "buy."

4.

The model upgraded

Hot Topic

(HOTT)

to "buy."

Quarter

: Fourth-quarter profit dropped 44% to $8 million, or 18 cents a share, as revenue decreased 10% to $214 million. The operating margin narrowed from 9.6% to 6.2%. Hot Topic has $123 million of cash, equal to a quick ratio of 2, and no debt.

Stock

: Hot Topic has dropped 34% during the past year, underperforming U.S. indices. The stock trades at a price-to-book ratio of 1.1 and a price-to-sales ratio of 0.4, 64% and 55% discounts to industry averages. It's expensive based on projected earnings.

Consensus

: Of analysts covering Hot Topic, one recommends purchasing its shares, eight advise holding and two suggest selling them.

BMO

(BMO) - Get Report

and

JPMorgan

(JPM) - Get Report

expect the stock to fall 15% to $6.

Piper Jaffray

(PJC) - Get Report

predicts it will fall to $4.50.

3.

The model upgraded

Foot Locker

(FL) - Get Report

to "buy."

Quarter

: Foot Locker swung to a fourth-quarter profit of $23 million, or 14 cents, from a loss of $125 million, or 81 cents, a year earlier. Revenue inched up 0.6%. The operating margin rose to 3.4%. Foot Locker has $569 million of cash and $138 million of debt.

Stock

: Foot Locker has appreciated 43% during the past 12 months, lagging behind the

S&P 500 Index

. It sells for a PEG ratio, a measure of value relative to expected long-term growth, of 0.3, 80% less than the industry average. A ratio below 1 signifies a bargain.

Consensus

: Of analysts following Foot Locker, nine, or 56%, rate its stock "buy," five rate it "hold" and two rate it "sell."

FBR Capital Markets

(FBCM)

projects a price target of $17, leaving a potential 11% gain.

Citigroup

(C) - Get Report

predicts the stock will hit $16.

2.

The model upgraded

Teck Resources

(TCK)

to "buy."

Quarter

: Teck swung to a fourth-quarter profit of $411 million, or 70 cents, from a loss of $607 million, or $1.27, a year earlier. Revenue increased 35% to $2.2 billion. The operating margin extended to 32%. Teck has $1.4 billion of cash and $8 billion of debt.

Stock

: Teck has risen sixfold during the past year, more than major benchmarks. The stock trades at a price-to-book ratio of 1.9 and a price-to-cash-flow ratio of 9.3, 57% and 64% discounts to industry averages. It's also cheap based on sales per share.

Consensus

: Of firms rating Teck, 16, or 80%, advocate purchasing its shares and four counsel holding them.

Bank of America

(BAC) - Get Report

expects the stock to rise 29% to $59.

UBS

(UBS) - Get Report

predicts it will hit $49.57.

HSBC

(HBC)

rates Teck "neutral."

1.

The model upgraded

Occidental Petroleum

(OXY) - Get Report

to "buy."

Quarter

: Fourth-quarter profit more than doubled to $938 million, or $1.16, as revenue increased 13% to $4.5 billion. The operating margin extended to 34%. Occidental has $1.2 billion of cash and $2.8 billion of debt, equal to a debt-to-equity ratio of 0.1.

Stock

: Occidental has gained 55% during the past 12 months, matching the gain of the

Nasdaq

. The stock sells for a PEG ratio of 0.4 and a price-to-projected-earnings ratio of 12, 64% and 16% discounts to industry averages.

Consensus

: Of analysts covering Occidental Petroleum, 16, or 73%, rate its stock "buy", five rate it "hold" and one ranks it "sell."

Goldman Sachs

(GS) - Get Report

predicts the stock will rise 22% to $105.

Morgan Stanley

(MS) - Get Report

expects it to hit $100.

Visit Stockpickr's

Ratings Upgrades Portfolio

and

Ratings Downgrades Portfolio

-- Reported by Jake Lynch in Boston.