The following ratings changes were generated on Wednesday, Nov. 5.

We've downgraded beauty-product maker

Avon Products

(AVP) - Get Report

from buy to hold. Strengths include its impressive record of earnings per share growth, compelling growth in net income and revenue growth. Weaknesses include a generally disappointing performance in the stock itself and generally poor debt management.

Avon reported significant earnings per share improvement in the most recent quarter compared with the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year, and we feel that this trend should continue, suggesting improving business performance. During the past fiscal year, Avon increased its bottom line by earning $1.22 vs. $1.05 in the prior year. This year, the market expects an improvement in earnings to $2.16. Net income increased by 60% over the same quarter last year, to $222.6 million, exceeding the average net income growth of the

S&P 500

and but less than that of the personal products industry.

The debt-to-equity ratio is very high at 2.28 and currently higher than the industry average, implying very poor management of debt levels within the company. Avon also has a quick ratio of 0.63, demonstrating the lack of ability of the company to cover short-term liquidity needs. Shares are down 33.48% year over year, apparently dragged down in part by the decline we have seen in the S&P 500. But don't assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, Avon is still more expensive than most of the other companies in its industry.

We've downgraded

Deutsche Bank

(DB) - Get Report

from hold to sell, driven by its generally weak debt management, weak operating cash flow, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

Deutsche Bank's debt-to-equity ratio is very high at 9.84 and currently higher than the industry average, implying that there is very poor management of debt levels within the company. Net operating cash flow has significantly decreased to $8,132.15 million, or 56.49% when compared with the same quarter last year. In addition, the firm's growth rate is much lower than the industry average. Return on equity has greatly decreased from the same quarter one year prior, a signal of major weakness within the corporation.

Net income decreased by 79.6% over the same quarter a year ago, to $526.34 million. Shares are down 62.76%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 81.02% compared with the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor, and in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

We've downgraded

Mohawk Industries

(MHK) - Get Report

, which engages in the production and sale of floor-covering products for residential and commercial applications, from hold to sell, driven by its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Net income has significantly decreased by 1241.8% from the same quarter one year ago, falling from $122.05 million to -$1,393.64 million, underperforming the S&P 500 and the household durables industry. Return on equity trails both the S&P 500 and the industry average. Gross profit margin of 29.1% is lower than desirable, having decreased from the same quarter a year ago. Net profit margin of -79% is significantly below the industry average.

Mohawk experienced a steep decline of 1,244.38% in earnings per share in the most recent quarter from the same quarter a year ago. This company has reported somewhat volatile earnings recently, and we feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, it increased its bottom line by earning $10.31 vs. $6.70 in the prior year. For the next year, the market is expecting a contraction of 57.6% in earnings to $4.38. Shares are down 46.82% on the year, worse than the S&P 500's performance. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

We've initiated coverage of

Teradata

(TDC) - Get Report

, which provides enterprise data warehousing solutions, at sell, driven by its meager revenue growth.

Since the same quarter one year prior, revenue has remained constant, though EPS have increased. Teradata reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings to $1.36, vs. 59 cents.Net income is up 106.9% when compared with the year-ago quarter, to $60 million, outperforming the S&P 500 and the computers and peripherals industry. Teradata has no debt to speak of and has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs. Shares are down 40.41% on the year, worse that the performance of the S&P 500.

We've downgraded

Cimarex Energy

(XEC) - Get Report

, an independent oil and gas exploration and production company, from buy to hold. Strengths include its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. Weaknesses include unimpressive growth in net income, disappointing return on equity and a decline in the stock price during the past year.

Since the same quarter a year ago, revenue rose by 58.2%, but EPS declined. Cimarex's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying very successful management of debt levels. The company also maintains an adequate quick ratio of 1.03, which illustrates the ability to avoid short-term cash problems.

The company experienced a steep decline in earnings per share in the most recent quarter from the same quarter a year ago. This company has reported somewhat volatile earnings recently, but we feel it is poised for EPS growth in the coming year. During the past fiscal year, Cimarex increased its bottom line by earning $4.11 vs. $4.08 in the prior year, and this year,the market expects an improvement in earnings to $7.75. Net income is down 417.3% over the same quarter last year, to -$232.13 million, and return on equity has slightly decreased, underperforming both the S&P 500 and the oil, gas and consumable fuels industry.

Other ratings changes include

Trident Microsystems

( TRID), downgraded from hold to sell, and

Evans Bancorp

(EVBN) - Get Report

, upgraded from hold to buy.

All ratings changes generated on Nov. 5 are listed below.

AVP

Avon

HOLD

Downgrade

BUY

DB

Deutsche Bank

SELL

Downgrade

HOLD

DRCO

Dynamics Research

SELL

Downgrade

HOLD

ENTG

Entegris

SELL

Downgrade

HOLD

EVBN

Evans Bancorp

BUY

Upgrade

HOLD

GPK

Graphic Packaging

SELL

Downgrade

HOLD

HLS

HealthSouth

SELL

Downgrade

HOLD

MHK

Mohawk Industries

SELL

Downgrade

HOLD

PKI

Perkinelmer

HOLD

Downgrade

BUY

PKOH

Park Ohio

SELL

Downgrade

HOLD

SAM

Boston Beer

HOLD

Downgrade

BUY

SMMF

Summit Financial

SELL

Downgrade

HOLD

TDC

Teradata

SELL

Initiated

TRID

Trident Microsystems

SELL

Downgrade

HOLD

UDR

UDR

SELL

Downgrade

HOLD

XEC

Cimarex

HOLD

Downgrade

BUY

Each business day, TheStreet.com Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stock's total return potential over a 12-month period, including both price appreciation and dividends. Buy, hold or sell ratings designate how the Ratings group expects these stocks to perform against a general benchmark of the equities market and interest rates. While the ratings model is quantitative, it uses both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and company earnings forecasts. Objective elements include volatility of past operating revenue, financial strength and company cash flows. However, the rating does not incorporate all of the factors that can alter a stock's performance. For example, it doesn't always factor in recent corporate or industry events that could affect the stock price, nor does it include recent technology developments and competitive dynamics that may affect the company. For those reasons, we believe a rating alone cannot tell the whole story, and that it should be part of an investor's overall research.

This article was written by a staff member of TheStreet.com Ratings.