TheStreet Ratings Top 10 Rating Changes

NEW YORK ( TheStreet Ratings) -- Every trading day TheStreet Ratings' stock model reviews the investment ratings on around 4,900 U.S. traded stocks for potential upgrades or downgrades based on the latest available financial results and trading activity.

TheStreet Ratings released rating changes on 57 U.S. common stocks for week ending June 10, 2011. 23 stocks were upgraded and 34 stocks were downgraded by our stock model.

Rating Change #10

Men's Wearhouse ( MW) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 60.39% to $79.03 million when compared to the same quarter last year. In addition, MENS WEARHOUSE INC has also vastly surpassed the industry average cash flow growth rate of -34.76%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 101.5% when compared to the same quarter one year prior, rising from $13.61 million to $27.43 million.
  • MENS WEARHOUSE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MENS WEARHOUSE INC increased its bottom line by earning $1.27 versus $0.87 in the prior year. This year, the market expects an improvement in earnings ($2.05 versus $1.27).
  • Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 59.98% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The revenue growth greatly exceeded the industry average of 12.8%. Since the same quarter one year prior, revenues rose by 22.6%. Growth in the company's revenue appears to have helped boost the earnings per share.

The Men's Wearhouse, Inc. operates as a specialty retailer of men's suits in the United States and Canada. The company operates its retail apparel stores under Men's Wearhouse, Men's Wearhouse and Tux, and K&G brand names in 47 states in the U.S. and the District of Columbia. The company has a P/E ratio of 24.3, equal to the average retail industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Men's Wearhouse has a market cap of $1.6 billion and is part of the services sector and retail industry. Shares are up 20.5% year to date as of the close of trading on Thursday.

You can view the full Men's Wearhouse Ratings Report or get investment ideas from our investment research center.

Rating Change #9

Thor Industries ( THO) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • THOR INDUSTRIES INC has improved earnings per share by 9.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, THOR INDUSTRIES INC increased its bottom line by earning $2.08 versus $0.31 in the prior year. For the next year, the market is expecting a contraction of 1.0% in earnings ($2.06 versus $2.08).
  • The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Automobiles industry average, but is less than that of the S&P 500. The net income increased by 17.3% when compared to the same quarter one year prior, going from $34.11 million to $40.01 million.
  • THO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.13, which illustrates the ability to avoid short-term cash problems.
  • The revenue growth greatly exceeded the industry average of 6.7%. Since the same quarter one year prior, revenues rose by 25.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

Thor Industries, Inc., together with its subsidiaries, manufactures and sells a range of recreation vehicles and small and mid-size buses, as well as related parts and accessories in the United States and Canada. The company has a P/E ratio of 15.7, equal to the average automotive industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Thor has a market cap of $1.7 billion and is part of the consumer goods sector and automotive industry. Shares are down 11.1% year to date as of the close of trading on Thursday.

You can view the full Thor Ratings Report or get investment ideas from our investment research center.

Rating Change #8

Dollar Thrifty Automotive Group ( DTG) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • DOLLAR THRIFTY AUTOMOTIVE GP's earnings per share declined by 41.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DOLLAR THRIFTY AUTOMOTIVE GP increased its bottom line by earning $4.34 versus $1.84 in the prior year. This year, the market expects an improvement in earnings ($4.59 versus $4.34).
  • 48.80% is the gross profit margin for DOLLAR THRIFTY AUTOMOTIVE GP which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, DTG's net profit margin of 4.70% significantly trails the industry average.
  • Net operating cash flow has significantly increased by 51.74% to $151.32 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 26.70%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Road & Rail industry and the overall market, DOLLAR THRIFTY AUTOMOTIVE GP's return on equity exceeds that of both the industry average and the S&P 500.
  • Compared to its closing price of one year ago, DTG's share price has jumped by 82.24%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DTG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.

Dollar Thrifty Automotive Group, Inc. through its subsidiaries, rents and leases vehicles through company owned and franchised stores under Dollar and the Thrifty brand names primarily in the United States and Canada. The company also operates a franchised retail used car sales network. The company has a P/E ratio of 21.1, equal to the average diversified services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Dollar Thrifty Automotive Group has a market cap of $2.4 billion and is part of the services sector and diversified services industry. Shares are up 73.1% year to date as of the close of trading on Tuesday.

You can view the full Dollar Thrifty Automotive Group Ratings Report or get investment ideas from our investment research center.

Rating Change #7

HDFC Bank ( HDB) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, impressive record of earnings per share growth, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The gross profit margin for HDFC BANK LTD is rather high; currently it is at 62.30%. Regardless of HDB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HDB's net profit margin of 17.00% is significantly lower than the same period one year prior.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • HDFC BANK LTD has improved earnings per share by 22.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HDFC BANK LTD increased its bottom line by earning $5.75 versus $4.55 in the prior year. This year, the market expects an improvement in earnings ($5.76 versus $5.75).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market, HDFC BANK LTD's return on equity exceeds that of both the industry average and the S&P 500.
  • The revenue growth came in higher than the industry average of 0.0%. Since the same quarter one year prior, revenues rose by 27.0%. Growth in the company's revenue appears to have helped boost the earnings per share.

HDFC Bank Limited provides commercial banking products and services in India. It operates in three segments: Retail Banking, Wholesale Banking, and Treasury. The company has a P/E ratio of 43.3, equal to the average banking industry P/E ratio and above the S&P 500 P/E ratio of 17.7. HDFC has a market cap of $24.9 billion and is part of the financial sector and banking industry. Shares are down 2.8% year to date as of the close of trading on Tuesday.

You can view the full HDFC Ratings Report or get investment ideas from our investment research center.

Rating Change #6

Prudential Financial ( PRU) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • PRUDENTIAL FINANCIAL INC's earnings per share improvement from the most recent quarter was slightly positive. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PRUDENTIAL FINANCIAL INC reported lower earnings of $5.74 versus $7.47 in the prior year. This year, the market expects an improvement in earnings ($6.66 versus $5.74).
  • The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Net operating cash flow has significantly increased by 4474.50% to $2,231.00 million when compared to the same quarter last year. In addition, PRUDENTIAL FINANCIAL INC has also vastly surpassed the industry average cash flow growth rate of 5.69%.
  • PRU's revenue growth has slightly outpaced the industry average of 8.6%. Since the same quarter one year prior, revenues rose by 10.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

Prudential Financial, Inc., through its subsidiaries, offers various financial products and services in the United States, Asia, Europe, and Latin America. The company operates through three divisions: The U.S. Retirement Solutions and Investment Management, The U.S. The company has a P/E ratio of 10.7, equal to the average insurance industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Prudential Financial has a market cap of $29.8 billion and is part of the financial sector and insurance industry. Shares are up 1.4% year to date as of the close of trading on Tuesday.

You can view the full Prudential Financial Ratings Report or get investment ideas from our investment research center.

Rating Change #5

Shutterfly Incorporated ( SFLY) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to -$52.85 million or 86.98% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet & Catalog Retail industry. The net income has significantly decreased by 64.0% when compared to the same quarter one year ago, falling from -$4.73 million to -$7.76 million.
  • Compared to its closing price of one year ago, SFLY's share price has jumped by 139.47%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • SFLY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 6.32, which clearly demonstrates the ability to cover short-term cash needs.
  • SFLY's revenue growth has slightly outpaced the industry average of 15.3%. Since the same quarter one year prior, revenues rose by 25.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.

Shutterfly, Inc. provides an Internet-based social expression and personal publishing service that enables consumers to share, print, and preserve their memories through the medium of photography. The company has a P/E ratio of 109.8, equal to the average diversified services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shutterfly has a market cap of $1.9 billion and is part of the services sector and diversified services industry. Shares are up 50.4% year to date as of the close of trading on Thursday.

You can view the full Shutterfly Ratings Report or get investment ideas from our investment research center.

Rating Change #4

Health Management Associates Incorporated ( HMA) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and generally poor debt management.

Highlights from the ratings report include:
  • The gross profit margin for HEALTH MANAGEMENT ASSOC is currently extremely low, coming in at 15.00%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 3.90% is above that of the industry average.
  • The debt-to-equity ratio is very high at 5.02 and currently higher than the industry average, implying that there is very poor management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, HMA has managed to keep a strong quick ratio of 1.85, which demonstrates the ability to cover short-term cash needs.
  • The net income growth from the same quarter one year ago has exceeded that of the Health Care Providers & Services industry average, but is less than that of the S&P 500. The net income increased by 18.3% when compared to the same quarter one year prior, going from $46.94 million to $55.52 million.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • HMA's revenue growth has slightly outpaced the industry average of 4.1%. Since the same quarter one year prior, revenues rose by 12.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

Health Management Associates, Inc., through its subsidiaries, engages in the operation of general acute care hospitals and other health care facilities in non-urban communities in the United States. The company has a P/E ratio of 15.5, below the average health services industry P/E ratio of 16.7 and below the S&P 500 P/E ratio of 17.7. Health Management Associates has a market cap of $2.7 billion and is part of the health care sector and health services industry. Shares are up 9.9% year to date as of the close of trading on Wednesday.

You can view the full Health Management Associates Ratings Report or get investment ideas from our investment research center.

Rating Change #3

Whiting Petroleum Corporation ( WLL) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 77.6% when compared to the same quarter one year ago, falling from $86.61 million to $19.41 million.
  • Compared to its closing price of one year ago, WLL's share price has jumped by 47.32%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • Net operating cash flow has increased to $214.06 million or 10.03% when compared to the same quarter last year. Despite an increase in cash flow, WHITING PETROLEUM CORP's cash flow growth rate is still lower than the industry average growth rate of 25.18%.
  • The gross profit margin for WHITING PETROLEUM CORP is currently very high, coming in at 76.10%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.50% trails the industry average.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 23.5%. Since the same quarter one year prior, revenues rose by 23.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.

Whiting Petroleum Corporation engages in the acquisition, development, exploitation, exploration, and production of oil and gas primarily in the Permian Basin, Rocky Mountains, Mid-Continent, Gulf Coast, and Michigan regions of the United States. The company has a P/E ratio of 31.3, below the average energy industry P/E ratio of 33.8 and above the S&P 500 P/E ratio of 17.7. Whiting has a market cap of $7.3 billion and is part of the basic materials sector and energy industry. Shares are up 4.6% year to date as of the close of trading on Wednesday.

You can view the full Whiting Ratings Report or get investment ideas from our investment research center.

Rating Change #2

Cameco Corporation ( CCJ) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CAMECO CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 35.8% when compared to the same quarter one year ago, falling from $142.39 million to $91.49 million.
  • 40.80% is the gross profit margin for CAMECO CORP which we consider to be strong. Regardless of CCJ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CCJ's net profit margin of 20.10% significantly outperformed against the industry.
  • Net operating cash flow has significantly increased by 99.92% to $266.03 million when compared to the same quarter last year. In addition, CAMECO CORP has also vastly surpassed the industry average cash flow growth rate of 25.24%.
  • CCJ's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.88, which clearly demonstrates the ability to cover short-term cash needs.

Cameco Corporation operates as a nuclear energy company. The company operates through three segments: Uranium, Fuel Services, and Electricity. The Uranium segment involves in the exploration for, mining, milling, purchase, and sale of uranium concentrate. The company has a P/E ratio of 23.1, below the average metals & mining industry P/E ratio of 23.7 and above the S&P 500 P/E ratio of 17.7. Cameco has a market cap of $11.1 billion and is part of the basic materials sector and metals & mining industry. Shares are down 32.7% year to date as of the close of trading on Tuesday.

You can view the full Cameco Ratings Report or get investment ideas from our investment research center.

Rating Change #1

Loews Corporation ( L) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and disappointing return on equity.

Highlights from the ratings report include:
  • The gross profit margin for LOEWS CORP is rather low; currently it is at 24.90%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 10.40% is above that of the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, LOEWS CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • LOEWS CORP's earnings per share declined by 7.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LOEWS CORP increased its bottom line by earning $3.11 versus $1.31 in the prior year. This year, the market expects an improvement in earnings ($3.28 versus $3.11).
  • Compared to its closing price of one year ago, L's share price has jumped by 29.55%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.

Loews Corporation, through its subsidiaries, operates primarily as a commercial property and casualty insurance company in the United States. The company has a P/E ratio of 13.6, below the average insurance industry P/E ratio of 13.8 and below the S&P 500 P/E ratio of 17.7. Loews has a market cap of $16.9 billion and is part of the financial sector and insurance industry. Shares are up 5.2% year to date as of the close of trading on Tuesday.

You can view the full Loews Ratings Report or get investment ideas from our investment research center.

-- Reported by Kevin Baker in Jupiter, Fla.

For additional Investment Research check out our Ratings Research Center.

For all other upgrades and downgrades made by TheStreet Ratings Model today check out our upgrades and downgrades list.
Kevin Baker became the senior financial analyst for TheStreet Ratings upon the August 2006 acquisition of Weiss Ratings by TheStreet.com, covering equity and mutual fund ratings. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.