BOSTON (TheStreet) -- TheStreet.com's quantitative equity model, which ranks stocks based on business fundamentals and performance, is changing its outlook on some closely followed names. Here are five significant ratings changes.
The model upgraded financial-planning company
: Ameriprise swung to a fourth-quarter profit of $237 million, or 90 cents a share, from a loss of $369 million, or $1.69 a share, a year earlier. Revenue increased 66% to $2.3 billion. Ameriprise's operating margin came to 17%. Its balance sheet has a liquid tilt, with $4.7 billion of cash and $2.2 billion of debt. The model gives Ameriprise a financial-strength score of 8.9 out of 10.
: Ameriprise advanced 81% during the past year, outpacing major U.S. indices. The stock trades at a price-to-earnings ratio of 14, a discount to capital-markets peers. The shares offer a 1.8% dividend yield.
The model upgraded homebuilder
: D.R. Horton posted a fiscal first-quarter profit of $192 million, or 56 cents a share, from a loss of $63 million, or 20 cents a share, a year earlier. Revenue increased 23% to $1.1 billion. D.R. Horton's operating margin stood at 5.7%. The company holds $2 billion of cash and $2.9 billion of debt. Its 1.1 debt-to-equity ratio indicates hefty leverage.
: D.R. Horton soared 76% during the past year, outperforming major U.S. indices. The stock trades at a price-to-projected earnings ratio of 28, a premium to household-durable peers. The shares offer a 1.1% dividend yield.
The model downgraded investment bank
: Lazard suffered a fourth-quarter loss of $142 million, or $1.64 a share, from a profit of $38 million, or 50 cents a share, a year earlier. It accelerated the amortization of stock grants belonging to recently deceased Chief Executive Officer Bruce Wasserstein and increased employee compensation substantially. Revenue grew 36% to $522 million. Lazard's 3.5 debt-to-equity ratio indicates excessive leverage.
: Lazard increased 29% during the past year, slightly more than the
Dow Jones Industrial Average
S&P 500 Index
. The stock trades at a price-to-projected earnings ratio of 17, on par with capital-markets peers. The shares offer a 1.3% dividend yield.
The model downgraded online stockbroker
: Fiscal first-quarter profit decreased 26% to $136 million, or 23 cents a share, as revenue inched up 1.3% to $626 million. TD Ameritrade's operating margin narrowed from 51% to 38%. The company possesses a liquid balance sheet, with $6.5 billion of cash and $1.3 billion of debt. The model awards TD Ameritrade a financial-strength score of 6.9 out of 10, but a growth score of just 3.1.
: TD Ameritrade climbed 35% during the past year, beating the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 17, a discount to capital-markets peers. TD Ameritrade doesn't pay dividends.
The model upgraded media conglomerate
: Time Warner swung to a fourth-quarter profit of $627 million, or 51 cents a share, from an impairment-related loss of $16 billion, or $13.41 a share, a year earlier. Revenue dropped 41% to $7.3 billion. Time Warner's operating margin inched up from 18% to 19%. The company holds $4.8 billion of cash, equating to a quick ratio of 1.1, and $15 billion of debt. Its 0.5 debt-to-equity ratio is less than the industry average.
: Time Warner has surged 43% since its stock split in March 2009, beating the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 14, a discount to media peers. The shares offer a 2.7% dividend yield.
-- Reported by Jake Lynch in Boston.