T. Rowe Price, Guess: Ratings Changes
BOSTON (
) -- TheStreet.com's stock-rating model upgraded life sciences company
Bruker
(BRKR) - Get Free 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 Free 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.
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 Free 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 Free 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.
