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.

The following ratings changes were generated on June 13.

CommVault Systems

(CVLT) - Get Report

, which provides data and information management software applications and related services, has been upgraded to hold.The revenue growth greatly exceeded the industry average of 1.3%. Since the same quarter one year prior, revenues rose by 33%. CommVault has no debt to speak of, therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. The gross profit margin for CommVault is currently very high, coming in at 87%. It has increased from the same quarter the previous year. They have a net profit margin of 11% significantly trailing the industry average. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CommVault reported lower earnings of 47 cents versus $1.37 in the prior year. The net income has significantly decreased by 88% when compared to the same quarter one year ago, falling from $51.85 million to $6.19 million. CommVault Systems has been rated sell since March 2008.

International Coal Group

( ICO), which through its subsidiaries, produces coal in Northern and Central Appalachia, has been upgraded to hold. International Coal's revenue growth trails the industry average of 30%. Since the same quarter one year prior, revenues rose by 10%. Compared to its closing price of one year ago, International Coal's share price has jumped by 96%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year. International Coal's debt-to-equity ratio of 0.82 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. The gross profit margin for International Coal is currently extremely low, coming in at 9.1%. Net operating cash flow has significantly decreased to -$18.17, million or 313%, when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. International Coal has been rated sell since August 2006.

J. Crew Group

( JCG), which sells women's, men's and children's apparel and accessories in the U.S., has been upgraded to hold. The revenue growth came in higher than the industry average of 4.5%. Since the same quarter one year prior, revenues rose by 14.6%. During the past fiscal year, J. Crew increased its bottom line by earning $1.52 vs. $1.24 in the prior year. This year, the market expects an improvement in earnings ($1.73 vs. $1.52). The current debt-to-equity ratio, 0.53, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.72 is somewhat weak and could be cause for future problems. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. J. Crew Group has been rated sell since July 2007.

Churchill Downs

(CHDN) - Get Report

, owns and operates pari-mutuel wagering properties and businesses in the U.S., has been downgraded to hold. The revenue growth came in higher than the industry average of 21%. Since the same quarter one year prior, revenues rose by 37.4. The gross profit margin for Churchill Downs is currently extremely low, coming in at 7.10%. Regardless of Churchill Downs' profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, Churchill Downs' net profit margin of 1.1% is significantly lower than the same period one year prior. The company's current return on equity has slightly decreased from the same quarter one year prior. In comparison to the other companies in the Hotels, Restaurants & Leisure industry and the overall market, Churchill Downs' return on equity is significantly below that of the industry average and is below that of the S&P 500. Churchill Downs has been rated buy since April 2007.

TFS Financial

(TFSL) - Get Report

, provides retail consumer banking services in Ohio and Florida through Third Federal Savings and Loan Association of Cleveland and Third Capital Inc., has been rated a hold. The revenue growth came in higher than the industry average of 19%. Revenues slightly increased by 8.8% from the same quarter a year earlier. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. Compared to other companies in the thrifts and mortgage finance industry and the overall market on the basis of return on equity, TFS Financial has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500. Net operating cash flow has fallen to -$28.13 million from having none in the same quarter last year. Since the company had no net operating cash flow for the prior period, we cannot calculate a percent change in order to compare its growth rate with that of its industry average. TFS Financial has not been previously rated.

Additional ratings changes are listed below.

Ticker

Company Name

Change

New Rating

Former Rating

BYLK

Baylake

Downgrade

Sell

Hold

CHDN

Churchill Downs

Downgrade

Hold

Buy

CHDX

Chindex

Downgrade

Hold

Buy

CVLT

CommVault Systems

Upgrade

Hold

Sell

EXX.A

Exx

Upgrade

Buy

Hold

EXX.B

Exx

Upgrade

Buy

Hold

FBOD

First Bank of Delaware

Downgrade

Sell

Hold

ICO

International Coal

Upgrade

Hold

Sell

JCG

J Crew Group

Upgrade

Hold

Sell

MPET

Magellan Petroleum

Upgrade

Hold

Sell

RADN

Radyne

Upgrade

Buy

Hold

RFIL

R F Industries

Upgrade

Buy

Hold

TFSL

TFS Financial

Initiated

Hold

YPF

Yacimientos Pete Fiscales

Upgrade

Buy

Hold

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