TheStreet.com Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking outperformance on a total return basis.

TheStreet.com's stock-rating model upgraded CACI ( CACI) to "buy." The company provides information systems and technology services to the U.S. government.

The numbers: Fiscal third-quarter revenue increased 4% to $674 million as net income and earnings per share climbed 5% to $23 million and 77 cents, respectively. Operating margin stood at 7% and net margin hovered at 4% despite recessionary pressures. The company has more than tripled its cash reserves to $174 million since the year-earlier quarter and a quick ratio of 2.2 indicates strong liquidity. A debt-to-equity ratio of 0.7 reflects conservative leverage.

The stock: CACI has increased 11% in 2009, outperforming the Dow Jones Industrial Average and S&P 500. The stock trades at a fair price-to-earnings ratio of 15, but doesn't pay dividends.

The model upgraded Heartland Express ( HTLD) to "buy." The company operates as a short- to medium-haul truckload carrier in the U.S.

The numbers: Second-quarter revenue fell 29% to $117 million as net income increased 2% to $18 million and earnings per share climbed 6% to 19 cents, helped by a lower share count. Operating margin climbed from 13% to 15% and net margin jumped from 10% to 15%. The cash balance has increased 59% to $45 million since the year-earlier quarter as the debt load remained at zero. Heartland's quick ratio of 0.8 indicates less-than-ideal liquidity. Our model prefers companies with quick ratios over 1.

The stock: Heartland Express has dropped 5% in 2009, underperforming the Dow and S&P 500. The stock trades at an expensive price-to-earnings ratio of 20 and offers a dividend yield below 1%.

The model upgraded Polaris Industries ( PII) to "buy." The company designs and manufactures off-road vehicles, motorcycles and snowmobiles.

The numbers: Second-quarter revenue declined 24% to $346 million as net income dropped 28% to $17 million and earnings per share fell 26% to 53 cents. Operating margin fell from 8% to 7% and net margin remained steady at 5%. The cash balance has increased 37% to $30 million since the year-earlier quarter, but a quick ratio of 0.3 indicates weak liquidity. And a debt-to-equity ratio of 1.7 reflects a hefty debt burden.

The stock: Polaris is up 17% in 2009, outperforming the Dow and S&P 500. The stock trades at a low price-to-earnings ratio of 10 and offers an attractive dividend yield of 4.7%.

The model upgraded Teserra Technologies ( TSRA) to "buy." The company develops and licenses miniaturization technologies for the electronics industry.

The numbers: First-quarter revenue nearly doubled to $114 million as net income and earnings per share multiplied 17 times to $40 million and 82 cents, respectively. Operating margin improved from 13% to 59% and net margin increased from 4% to 34%. The company has a robust cash position, evident in $361 million of reserves and a quick ratio of 5.5, and has shirked debt and instead financed itself entirely with equity.

The stock: Teserra has increased 144% in 2009, far outperforming all major U.S. indexes. The stock trades at an expensive price-to-earnings ratio of 33 and doesn't pay dividends.

The model upgraded India-based Wipro ( WIT) to "buy." The company provides information-technology services and products, and consumer care and lighting products worldwide.

The numbers: Fiscal fourth-quarter revenue fell 17% to $1.1 billion as net income dropped 26% to $154 million and earnings per share fell 29% to 10 cents. Operating margin improved from 16% to 18%, but net margin dropped from 15% to 14%. The company has an adequate liquidity position, as demonstrated by a quick ratio of 1. And a debt-to-equity ratio of 0.4 indicates modest leverage.

The stock: Wipro has surged 60% in 2009, outperforming all major U.S. indexes. The stock trades at an expensive price-to-earnings ratio of 27 and doesn't pay dividends.

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