Skip to main content

BOSTON (

TheStreet

) -- TheStreet.com's stock-rating model upgraded life sciences company

Bruker

(BRKR) - Get Bruker Corporation Report

to "buy."

The numbers

: Second-quarter net income decreased 41% to $13 million, or 8 cents a share, as revenue dropped 19% to $253 million. Bruker's gross margin rose from 44% to 47%, but its operating margin declined from 9% to 8%. A quick ratio of 0.6 indicates poor liquidity. Its debt-to-equity ratio of 0.5 reflects conservative leverage.

The stock

: Bruker shares have more than doubled this year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 27, a premium to the market, but a discount to life science peers. The company doesn't pay dividends.

The model upgraded clothing retailer

Guess

(GES) - Get Guess?, Inc. Report

to "buy."

The numbers

: Fiscal second-quarter net income rose 11% to $60 million, or 64 cents a share, as revenue grew 2% to $500 million. The company's gross margin was unchanged at 45%, and its operating margin increased from 12% to 14%. A quick ratio of 1.9 reflects ample liquidity. Guess holds minimal debt.

TheStreet Recommends

The stock

: Guess shares have more than doubled 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 retailers.

The model upgraded

National-Oilwell Varco

(NOV) - Get NOV Inc. Report

, a maker of oil and gas drilling equipment, to "buy."

The numbers

: Third-quarter profit dropped 30% to $385 million, or 92 cents a share, as revenue decreased 15% to $3.1 billion. The company's gross margin fell from 35% to 29%, and its operating margin declined from 23% to 20%. The company has an admirable financial position, with $3.2 billion of cash and just $884 million of debt.

The stock

: National-Oilwell Varco is up 79% this year, outperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 10, a discount to the market and energy equipment peers. The company doesn't pay dividends.

The model upgraded oil and gas company

Plains Exploration & Production

(PXP)

to "hold."

The numbers

: Second-quarter net income plummeted 79% to $44 million, or 37 cents a share, as revenue declined 62% to $279 million. The company's gross margin descended from 78% to 61%, and its operating margin dropped from 53% to 14%. A quick ratio of 1 indicates adequate liquidity. A debt-to-equity ratio of 0.7 demonstrates reasonable leverage.

The stock

: Plains Exploration is up 23% this year, more than the

Dow Jones Industrial Average

and

S&P 500 Index

. The company posted a loss of $14.56 a share in the fourth quarter. The stock doesn't pay dividends.

The model upgraded investment manager

T. Rowe Price Group

(TROW) - Get T. Rowe Price Group Report

to "buy."

The numbers

: Third-quarter net income dropped 13% to $133 million, or 50 cents a share, as revenue decreased 10% to $499 million. The company's gross margin declined from 46% to 45%, and its operating margin descended from 43% to 42%. T. Rowe Price has an ideal financial position, with $739 million of cash and no debt.

The stock

: T. Rowe Price has risen 48% this year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 46, a premium to the market and asset managers. The shares pay a 1.9% dividend yield.

-- Reported by Jake Lynch in Boston.