TSC Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking solid outperformance on a total return basis.

The following ratings changes were generated on Wednesday, May 13.

We've downgraded

EnergySolutions

(ES) - Get Report

from hold to sell, driven by its generally weak debt management and poor profit margins.

The company's 1.2 debt-to-equity ratio is high relative to the industry average, suggesting a need for better debt-level management. In addition, the quick ratio of 0.9 implies difficulty in avoiding short-term cash problems. EnergySolutions' gross profit margin of 16.3% has decreased from the same quarter last year, and its net profit margin of 0.6% trails the industry average. Revenue fell 4.2% from the year-ago quarter, though EPS increased significantly in the most recent quarter, and we think the company's yearlong trend of EPS growth should continue.

Shares are down 65.9% over the past year, underperforming the

S&P 500

.

We've upgraded

Energy Transfer Equity

(ETE)

from hold to buy, driven by its growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

EPS are up 19.3% in the most recent quarter compared with the year-ago quarter, and we feel that the company's two-year trend of positive EPS growth should continue. Net income increased by 19.6% compared with the year-ago quarter, from $126.7 million to $151.5 million. The company's 0.7 quick ratio is weak. Net operating cash flow increased 20% to $317.8 million compared with the year-ago quarter. Revenue fell by 38.2%.

We've upgraded

Genuine Parts

(GPC) - Get Report

from hold to buy, driven by its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

The company's debt-to-equity ratio of 0.2 is below the industry average, implying very successful management of debt levels, and its quick ratio of 1.1 illustrates its ability to avoid short-term cash problems. Net operating cash flow increased 37.4% to $200.4 million compared with the year-ago quarter, though revenue declined 10.8% and EPS are also down. Net income fell 27.8%, from $123.5 million in the year-ago quarter to $89.2 million. ROE has also decreased from the same quarter last year.

We've downgraded

Janus Capital Group

(JNS)

from hold to sell, driven by its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Janus experienced a steep decline in EPS in the most recent quarter compared with the year-ago quarter, and we anticipate that the company's yearlong trend of declining EPS should continue in the coming year. Net income fell from $37.4 million in the year-ago quarter to -$818.1 million in the most recent quarter. ROE also greatly decreased. Janus Capital's 21% gross profit margin has decreased from the year-ago quarter, and its -480.4% net profit margin is below the industry average. Net operating cash flow fell to -$27.4 million compard with the year-ago quarter.

We've upgraded

Sealed Air

(SEE) - Get Report

from hold to buy, driven by its generally strong cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Net operating cash flow increased by 77.3% to $56.2 million compared with the year-ago quarter. Revenue dropped by 16%, and EPS are also down slightly, but we anticipate the company's two-year trend of declining EPS to reverse over the coming year. Net income decreased 4.4%compared with the year-ago quarter, from $60.8 million to $58.1 million. Sealed Air's gross profit margin is 32.8%, though it has increased from the year-ago quarter. The company's net profit margin of 5.9% compares favorably with the industry average.

All ratings changes for May 13 are listed below.

Note: Our quantitative model makes stock recommendations based on GAAP figures that may differ materially from data as reported by the companies themselves. As a result, rating changes are occasionally driven by so-called nonrecurring items. As always, we urge readers to use TSC Ratings' reports in conjunction with additional information to construct their opinions on the value that should be placed on any given stock.

TheStreet.com Ratings, recently cited for Best Stock Selection from October 2007 through February 2009 , is an independent research provider that combines fundamental and technical analysis to offer investors tremendous value in volatile times. To see how your portfolio can use this research,

click here now!