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 164 U.S. common stocks for week ending August 12, 2011. 35 stocks were upgraded and 129 stocks were downgraded by our stock model.

Rating Change #10

Rackspace Hosting ( RAX) 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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • RAX's revenue growth has slightly outpaced the industry average of 26.6%. Since the same quarter one year prior, revenues rose by 32.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • RACKSPACE HOSTING 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, RACKSPACE HOSTING INC increased its bottom line by earning $0.34 versus $0.24 in the prior year. This year, the market expects an improvement in earnings ($0.52 versus $0.34).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 56.8% when compared to the same quarter one year prior, rising from $11.20 million to $17.56 million.
  • The gross profit margin for RACKSPACE HOSTING INC is currently very high, coming in at 70.10%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, RAX's net profit margin of 7.10% significantly trails the industry average.
  • Net operating cash flow has significantly increased by 52.98% to $79.49 million when compared to the same quarter last year. Despite an increase in cash flow, RACKSPACE HOSTING INC's average is still marginally south of the industry average growth rate of 60.81%.

Rackspace Hosting, Inc. operates in the hosting and cloud computing industry. It provides information technology (IT) as a service, managing Web-based IT systems for small and medium-sized businesses, as well as large enterprises worldwide. The company has a P/E ratio of 85.6, equal to the average internet industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Rackspace Hosting has a market cap of $4.6 billion and is part of the technology sector and internet industry. Shares are up 0.3% year to date as of the close of trading on Tuesday.

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

Rating Change #9

Enerplus ( ERF - Get Report) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, expanding profit margins, impressive record of earnings per share growth and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 756.3% when compared to the same quarter one year prior, rising from $31.30 million to $267.98 million.
  • ERF's revenue growth trails the industry average of 44.5%. Since the same quarter one year prior, revenues rose by 15.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for ENERPLUS CORP is currently very high, coming in at 79.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 76.80% significantly outperformed against the industry average.
  • ENERPLUS CORP 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 year. During the past fiscal year, ENERPLUS CORP increased its bottom line by earning $0.71 versus $0.54 in the prior year.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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.

Enerplus Corporation operates as an independent oil and gas producer. The company has a P/E ratio of 8.5, below the average energy industry P/E ratio of 61.7 and below the S&P 500 P/E ratio of 17.7. Enerplus has a market cap of $4.8 billion and is part of the basic materials sector and energy industry. Shares are unchanged year to date as of the close of trading on Tuesday.

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

Rating Change #8

Baytex Energy ( BTE - Get Report) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, impressive record of earnings per share growth, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 223.6% when compared to the same quarter one year prior, rising from $33.03 million to $106.86 million.
  • BTE's revenue growth trails the industry average of 39.6%. Since the same quarter one year prior, revenues rose by 26.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BAYTEX ENERGY CORP 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 year. During the past fiscal year, BAYTEX ENERGY CORP increased its bottom line by earning $1.54 versus $0.79 in the prior year.
  • The gross profit margin for BAYTEX ENERGY CORP is rather high; currently it is at 56.20%. Regardless of BTE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BTE's net profit margin of 37.40% significantly outperformed against the industry.
  • Net operating cash flow has increased to $146.20 million or 31.19% when compared to the same quarter last year. Despite an increase in cash flow, BAYTEX ENERGY CORP's average is still marginally south of the industry average growth rate of 35.47%.

Baytex Energy Corp., through its subsidiaries, engages in the acquisition, exploration, development, and production of petroleum and natural gas in the Western Canadian Sedimentary Basin and the United States. The company has a P/E ratio of 34.7, below the average energy industry P/E ratio of 41.8 and above the S&P 500 P/E ratio of 17.7. Baytex Energy has a market cap of $5.3 billion and is part of the basic materials sector and energy industry. Shares are up 2.3% year to date as of the close of trading on Friday.

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

Rating Change #7

Valhi Incorporated ( VHI - Get Report) 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, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations 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 revenue growth came in higher than the industry average of 21.4%. Since the same quarter one year prior, revenues rose by 37.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • VALHI 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. During the past fiscal year, VALHI INC turned its bottom line around by earning $0.42 versus -$0.30 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 1064.4% when compared to the same quarter one year prior, rising from $4.50 million to $52.40 million.
  • Net operating cash flow has significantly increased by 985.18% to $58.60 million when compared to the same quarter last year. In addition, VALHI INC has also vastly surpassed the industry average cash flow growth rate of 31.59%.
  • 37.90% is the gross profit margin for VALHI INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.10% trails the industry average.

Valhi, Inc., through its subsidiaries, operates in the chemicals, component products, and waste management businesses. Valhi has a market cap of $4.7 billion and is part of the basic materials sector and chemicals industry. Shares are up 62.2% year to date as of the close of trading on Tuesday.

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

Rating Change #6

Ameren ( AEE - Get Report) 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 and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • AEE's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 4.5%. 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.
  • The debt-to-equity ratio is somewhat low, currently at 0.95, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that AEE's debt-to-equity ratio is low, the quick ratio, which is currently 0.66, displays a potential problem in covering short-term cash needs.
  • AMEREN CORP's earnings per share declined by 10.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, AMEREN CORP reported lower earnings of $0.58 versus $2.81 in the prior year. This year, the market expects an improvement in earnings ($2.36 versus $0.58).
  • After a year of stock price fluctuations, the net result is that AEE's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Multi-Utilities industry. The net income has decreased by 9.2% when compared to the same quarter one year ago, dropping from $152.00 million to $138.00 million.

Ameren Corporation, through its subsidiaries, operates as a public utility company in Missouri and Illinois, the United States. The company has a P/E ratio of 89.6, above the average utilities industry P/E ratio of 59 and above the S&P 500 P/E ratio of 17.7. Ameren has a market cap of $6.3 billion and is part of the utilities sector and utilities industry. Shares are down 3.6% year to date as of the close of trading on Wednesday.

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

Rating Change #5

Time Warner Inc ( TWX) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth and attractive valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • TIME WARNER INC has improved earnings per share by 20.4% 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. This trend suggests that the performance of the business is improving. During the past fiscal year, TIME WARNER INC increased its bottom line by earning $2.25 versus $1.76 in the prior year. This year, the market expects an improvement in earnings ($2.77 versus $2.25).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 19.5%. Since the same quarter one year prior, revenues rose by 10.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 44.80% is the gross profit margin for TIME WARNER INC which we consider to be strong. Regardless of TWX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.10% trails the industry average.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Media industry average. The net income increased by 13.5% when compared to the same quarter one year prior, going from $562.00 million to $638.00 million.
  • In its most recent trading session, TWX has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Filmed Entertainment, and Publishing. The company has a P/E ratio of 12.5, equal to the average media industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Time Warner has a market cap of $30.4 billion and is part of the services sector and media industry. Shares are down 7.6% year to date as of the close of trading on Friday.

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

Rating Change #4

Morgan Stanley ( MS - Get Report) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally weak debt management, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 39.81%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 147.50% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • 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 Capital Markets industry. The net income has significantly decreased by 37.3% when compared to the same quarter one year ago, falling from $1,903.00 million to $1,193.00 million.
  • The debt-to-equity ratio is very high at 7.73 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.
  • 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. Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, MORGAN STANLEY underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Net operating cash flow has significantly decreased to -$3,852.00 million or 146.49% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. It operates in three segments: Institutional Securities, Global Wealth Management Group, and Asset Management. The company has a P/E ratio of 24.6, below the average financial services industry P/E ratio of 34.4 and above the S&P 500 P/E ratio of 17.7. Morgan Stanley has a market cap of $35.1 billion and is part of the financial sector and financial services industry. Shares are down 39.5% year to date as of the close of trading on Thursday.

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

Rating Change #3

ArcelorMittal ( MT - Get Report) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, robust revenue growth and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • ARCELORMITTAL SA has improved earnings per share by 24.0% 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ARCELORMITTAL SA turned its bottom line around by earning $1.61 versus -$0.06 in the prior year. This year, the market expects an improvement in earnings ($2.72 versus $1.61).
  • The revenue growth significantly trails the industry average of 50.3%. Since the same quarter one year prior, revenues rose by 16.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.45, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
  • Net operating cash flow has significantly decreased to -$573.00 million or 248.83% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • MT's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 33.98%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

ArcelorMittal, together with its subsidiaries, engages in the production and marketing of steel worldwide. The company has a P/E ratio of 13.3, above the average metals & mining industry P/E ratio of 12.4 and below the S&P 500 P/E ratio of 17.7. ArcelorMittal has a market cap of $39.5 billion and is part of the basic materials sector and metals & mining industry. Shares are down 41.8% year to date as of the close of trading on Tuesday.

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

Rating Change #2

Bank of America Corporation ( BAC - Get Report) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally weak debt management, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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 Diversified Financial Services industry. The net income has significantly decreased by 382.6% when compared to the same quarter one year ago, falling from $3,123.00 million to -$8,826.00 million.
  • The debt-to-equity ratio is very high at 3.23 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.
  • 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. Compared to other companies in the Diversified Financial Services industry and the overall market, BANK OF AMERICA CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 53.37%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 433.33% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is 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.
  • BANK OF AMERICA CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BANK OF AMERICA CORP reported poor results of -$0.38 versus -$0.10 in the prior year. This year, the market expects an improvement in earnings (-$0.27 versus -$0.38).

Bank of America Corporation, through its subsidiaries, provides banking and financial services to individuals, small- and middle-market businesses, corporations, and governments primarily in the United States and internationally. Bank of America has a market cap of $82.8 billion and is part of the financial sector and banking industry. Shares are down 51.1% year to date as of the close of trading on Tuesday.

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

Rating Change #1

Telefonica ( TEF - Get Report) 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 and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally poor debt management and poor profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 10.5%. Since the same quarter one year prior, revenues rose by 36.2%. 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.
  • 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 Diversified Telecommunication Services industry and the overall market, TELEFONICA SA's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • TELEFONICA SA' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, TELEFONICA SA increased its bottom line by earning $2.98 versus $2.45 in the prior year. For the next year, the market is expecting a contraction of 14.9% in earnings ($2.54 versus $2.98).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Diversified Telecommunication Services industry. The net income has decreased by 4.6% when compared to the same quarter one year ago, dropping from $2,399.95 million to $2,288.85 million.
  • The debt-to-equity ratio is very high at 2.95 and currently higher than the industry average, implying that there is very poor management of debt levels within the company. To add to this, TEF has a quick ratio of 0.56, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

Telefonica, S.A. provides fixed and mobile telephony services primarily in Spain, rest of Europe, and Latin America. The company has a P/E ratio of 57.4, above the average telecommunications industry P/E ratio of 21.9 and above the S&P 500 P/E ratio of 17.7. Telefonica has a market cap of $86.6 billion and is part of the technology sector and telecommunications industry. Shares are down 13.6% year to date as of the close of trading on Friday.

You can view the full Telefonica 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.