TheStreet) -- Here are three downgrades from TheStreet's quantitative stock model. 3. The model downgraded oil and gas transporter Enbridge Energy Partners ( EEP) to "hold." The numbers: Fourth-quarter net income decreased 40% to $73 million, and earnings per share fell 54% to 48 cents, hurt by a larger float. Revenue dropped 12% to $1.6 billion. The operating margin narrowed from 9.5% to 7.9%. The partnership holds $143 million of cash and $4.1 billion of debt. The stock: Enbridge Energy Partners has advanced 82% in the past year, outperforming major U.S. indices. The stock trades at a price-to-projected-earnings ratio of 17, a premium to oil and gas peers. It offers a 7.7% distribution yield. Distributions are taxed differently than dividends. 2. The model downgraded gas-seller Air Products & Chemicals ( APD) to "hold." The numbers: Fiscal first-quarter net income nearly quadrupled to $252 million, and earnings per share almost tripled to $1.16. Revenue declined 1% to $2.2 billion. The operating margin expanded from 13% to 15%. Air Products & Chemicals possesses $323 million of cash and $4.4 billion of debt. The stock: Air Products & Chemicals has increased 50% over the past 12 months, more than the Dow Jones Industrial Average, but less than the S&P 500 Index. The stock trades at a price-to-projected-earnings ratio of 12, a discount to competitors.
1. The model downgraded integrated oil and gas company Statoil ( STO) to "hold."The numbers: Statoil swung to a fourth-quarter profit of $1.2 billion, or 38 cents a share, from a loss of $802 million, or 26 cents, a year earlier. Revenue soared 156% to $21 billion. The operating margin widened from 14% to 27%. Statoil holds $5.5 billion of cash and $34 billion of debt. The stock: Statoil has appreciated 37% in the past year, lagging behind U.S. benchmarks. The stock trades at a price-to-projected-earnings ratio of 11, a discount to peers. Its PEG ratio, a measure of value relative to growth, of 0.3 represents a 72% discount to the industry average. -- Reported by Jake Lynch in Boston.