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NEW YORK ( TheStreet) -TheStreet Ratings' stock model upgraded American Greetings ( AM) to 'Buy' from 'Hold'. This greeting card company gift wrapped a quarterly love note to investors of return on equity increasing to 14 in fiscal first quarter. TheStreet Ratings released rating changes on eight additional U.S. common stocks for June 30, 2010. In all, seven stocks have been downgraded and two stocks have been upgraded by our stock model. The net income at American Greeting increased by 209.6% when compared to the same quarter one year prior, rising to $30.8 million from $10.0 million. With revenue down 4% for the quarter, the company was able to trim material, labor, distribution and marketing costs to increase profitability.
The only other stock upgraded today, Acuity Brands ( AYI), also changed to 'Buy' from 'Hold'. This lighting fixture company released third quarter results with net income slipping to $21.3 million from $22 million a year earlier and sales rising 3% to $407.6 million. This call by the stock model may be optimistic as it may take more than the model's 12 month outlook for the lousy commercial and residential market to work through its saturated state and for credit conditions to loosen up.
-- Reported by Kevin Baker in Jupiter, Fla. For additional Investment Research check out our Ratings Research Center.