Staples, Nordstrom: Ratings Upgrades

Staples, Weyerhaeuser and Nordstrom were upgraded at TheStreet.
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BOSTON (TheStreet) -- Nordstrom (JWN) - Get Report, Weyerhaeuser (WY) - Get Report and Staples (SPLS) were upgraded by TheStreet's stock model.

3.

The model upgraded upscale department store Nordstrom to "buy."

Quarter

: Fourth-quarter profit more than doubled to $172 million, or 77 cents a share, as revenue grew 11% to $2.6 billion. The operating margin extended from 6.5% to 12%. Nordstrom holds $795 million of cash and $2.6 billion of debt.

Stock

: Nordstrom has more than doubled during the past year, outperforming U.S. indices. It trades at a price-to-projected-earnings ratio of 14, a 23% discount to the industry average. The shares are expensive based on book value and sales.

Consensus

: Of analysts covering Nordstrom, 11 advise purchasing its shares and 11 recommend holding them.

Jesup & Lamont

expects the stock to advance 17% to $51.

KeyBank

(KEY) - Get Report

and

Citigroup

(C) - Get Report

predict it will hit $50.

2.

The model upgraded timber company Weyerhaeuser to "hold."

Quarter

: Weyerhaeuser's fourth-quarter loss narrowed to $175 million, or 83 cents, from $1.2 billion, or $5.68, a year earlier. Revenue dropped 18%. The operating margin remained negative. Weyerhaeuser has $1.9 billion of cash and $5.7 billion of debt.

Stock

: Weyerhaeuser has advanced 48% during the past year, beating the

S&P 500 Index

. It sells for a price-to-projected-earnings ratio of 57 and a price-to-book ratio of 2.6, 109% and 60% discounts to peer averages. It's also expensive based on sales.

Consensus

: Of researchers following Weyerhaeuser, five, or 29%, rate its stock "buy," 10 rate it "hold" and two rank it "sell."

Barclays

(BCS) - Get Report

expects it to hit $70, leaving a potential 38% return.

Bank of America

(BAC) - Get Report

predicts it will touch $53.

1.

The model upgraded office-products seller Staples to "buy."

Quarter

: Fourth-quarter profit decreased 18% to $234 million, or 32 cents, as revenue ascended 3.8% to $6.4 billion. The operating margin inched up from 7.4% to 7.6%. The balance sheet stores $1.4 billion of cash and $2.6 billion of debt.

Stock

: Staples has risen 16% during the past 12 months, less than U.S. stock-market indices. It trades at a price-to-projected-earnings ratio of 15 and a price-to-book ratio of 2.6, 17% and 21% discounts to industry averages. It's also cheap based on cash flow.

Consensus

: Of firms rating Staples, 15, or 68%, advocate purchasing its shares, six recommend holding and one says to sell them.

Credit Suisse

(CS) - Get Report

and

Jefferies

(JEF) - Get Report

project a share price of $29, leaving 19% of potential upside.

Visit Stockpickr's

Ratings Upgrades Portfolio

and

Ratings Downgrades Portfolio

-- Reported by Jake Lynch in Boston.