The following ratings changes were generated on Tuesday, Oct. 21. We've downgraded DryShips ( DRYS), which provides international seaborne transportation services, from buy to hold. Strengths include its robust revenue growth, notable return on equity and attractive valuation levels. Weaknesses include generally poor debt management and a generally disappointing performance in the stock itself. Revenue leaped by 169% since the same quarter one year ago, greatly exceeding the industry average of 28.2% and helping to boost EPS. Current return on equity exceeded ROE from the same quarter last year, outperforming both the marine industry and the S&P 500, a clear sign of strength within the company. DryShips reported significant earnings per share improvement in the most recent quarter compared with the same quarter a year ago and has demonstrated a two-year pattern of positive EPS growth, but we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, DryShips increased its bottom line by earning $13.29 vs. $1.74 in the prior year. For the next year, the market is expecting a contraction of 2% in earnings to $13.03. Its debt-to-equity ratio of 1.48 is relatively high when compared with the industry average, suggesting a need for better debt level management. The company also has a quick ratio of 0.37, clearly demonstrating an inability to cover short-term cash needs. Shares plunged 78.41% on the year, underperforming the S&P 500. Naturally, the overall market trend is bound to be a significant factor, and the stock's sharp decline last year could be a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now. .