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BOSTON (

TheStreet

) -- TheStreet.com's stock-rating model upgraded software maker

Adobe Systems

(ADBE) - Get Adobe Inc. Report

to "buy."

The numbers

: Third-quarter profit fell 29% to $136 million, or 26 cents a share, as revenue fell 21% to $698 million. Its gross margin rose from 86% to 89% and its operating margin dropped from 25% to 24%. The company has an admirable financial position, with $2.6 billion of cash compared with $350 million of debt.

The stock

: Adobe has jumped 63% this year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 28, a premium to the market, but a discount to software peers. The company doesn't pay dividends.

The model upgraded women's apparel retailer

Dress Barn

( DBRN) to "buy."

The numbers

: Fiscal fourth-quarter profit increased 20% to $26 million, or 41 cents a share, as revenue grew 4% to $399 million. Its gross margin remained steady at 40% and its operating margin was unchanged at 10%. A quick ratio of 1 demonstrates adequate liquidity. A debt-to-equity ratio of 0.2 indicates modest leverage.

The stock

TheStreet Recommends

: Dress Barn has advanced 74% this year, outpacing major U.S. indices. The stock trades at a price-to-earnings ratio of 17, a discount to the market and apparel retail peers. The company doesn't pay dividends.

The model upgraded

Emcor Group

(EME) - Get EMCOR Group, Inc. Report

, provider of electrical construction services, to "buy."

The numbers

: Second-quarter profit rose 2% to $45 million, or 67 cents a share, as revenue fell 17% to $1.4 billion. Its gross margin rose from 14% to 16%, but its operating margin was unchanged at 5%. A quick ratio of 1.3 reflects adequate liquidity. A debt-to-equity ratio of 0.2 indicates conservative leverage.

The stock

: Emcor is up 12% this year, trailing major U.S. indices. The stock trades at a price-to-earnings ratio of 9, a discount to the market and construction peers. The company doesn't pay dividends.

The model upgraded

Goodyear Tire & Rubber

(GT) - Get Goodyear Tire & Rubber Company Report

to "hold."

The numbers

: The company swung to a second-quarter loss of $221 million, or 92 cents a share, from a profit of $75 million, or 31 cents a share, in the year-earlier period. Revenue dropped 25% to $3.9 billion. Its gross margin fell from 23% to 19% and its operating margin descended into negative territory. A quick ratio of 1.2 indicates adequate liquidity. A debt-to-equity ratio of 10 reflects excessive leverage.

The stock

: Goodyear Tire has surged 190% this year, beating major U.S. indices. The company has posted losses for three consecutive quarters. The stock doesn't pay dividends.

The model downgraded clinical lab operator

Laboratory Corp. of America

(LH) - Get Laboratory Corporation of America Holdings Report

to "hold."

The numbers

: Second-quarter net income rose 31% to $136 million, or $1.24 a share, boosted by a lower share count. Revenue grew 4% to $1.2 billion. Its gross margin was unchanged at 45% and its operating margin jumped from 18% to 21%. The company has adequate liquidity, evident in its quick ratio of 1.6. A debt-to-equity ratio of 0.7 indicates reasonable leverage.

The stock

: Laboratory Corp. of America has risen 5% this year, less than major U.S. indices. The stock trades at a price-to-earnings ratio of 15, a discount to the market and health care service peers. The company doesn't pay dividends.

-- Reported by Jake Lynch in Boston.