TheStreet Ratings Top 10 Rating Changes

NEW YORK ( TheStreet Ratings) -- Every trading day TheStreet Ratings' stock model reviews the investment ratings on around 4,800 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 132 U.S. common stocks for week ending August 19, 2011. 16 stocks were upgraded and 116 stocks were downgraded by our stock model.

Rating Change #10

Salesforce.com ( CRM) 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, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 2.1%. Since the same quarter one year prior, revenues rose by 38.4%. 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.
  • Net operating cash flow has slightly increased to $82.93 million or 8.98% when compared to the same quarter last year. In addition, SALESFORCE.COM INC has also modestly surpassed the industry average cash flow growth rate of 7.41%.
  • The gross profit margin for SALESFORCE.COM INC is currently very high, coming in at 77.90%. Regardless of CRM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CRM's net profit margin of -0.80% significantly underperformed when compared to the industry average.
  • 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 Software industry. The net income has significantly decreased by 128.9% when compared to the same quarter one year ago, falling from $14.74 million to -$4.27 million.
  • 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 Software industry and the overall market, SALESFORCE.COM INC's return on equity significantly trails that of both the industry average and the S&P 500.

salesforce.com, inc. provides customer and collaboration relationship management (CRM) services to various businesses and industries worldwide. It also offers a technology platform for customers and developers to build and run business applications. The company has a P/E ratio of 371.5, below the average computer software & services industry P/E ratio of 382.8 and above the S&P 500 P/E ratio of 17.7. Salesforce.com has a market cap of $16.9 billion and is part of the technology sector and computer software & services industry. Shares are down 13.6% year to date as of the close of trading on Friday.

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

Rating Change #9

State Street ( STT) 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, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • STT's revenue growth has slightly outpaced the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 5.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • STATE STREET CORP has improved earnings per share by 17.6% 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, STATE STREET CORP reported lower earnings of $3.08 versus $3.47 in the prior year. This year, the market expects an improvement in earnings ($3.71 versus $3.08).
  • Net operating cash flow has significantly decreased to -$3,026.00 million or 285.87% 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's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Capital Markets industry and the overall market, STATE STREET CORP's return on equity is below that of both the industry average and the S&P 500.

State Street Corporation, through its subsidiaries, provides various financial services and products to the institutional investors worldwide. The company has a P/E ratio of 11, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. State Street has a market cap of $17.5 billion and is part of the financial sector and banking industry. Shares are down 29.5% year to date as of the close of trading on Friday.

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

Rating Change #8

EOG Resources ( EOG) 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, increase in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:
  • EOG's very impressive revenue growth greatly exceeded the industry average of 39.6%. Since the same quarter one year prior, revenues leaped by 78.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for EOG RESOURCES INC is currently very high, coming in at 81.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.30% is above that of the industry average.
  • EOG RESOURCES INC reported significant earnings per share improvement 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, EOG RESOURCES INC reported lower earnings of $0.63 versus $2.16 in the prior year. This year, the market expects an improvement in earnings ($3.72 versus $0.63).
  • 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 Oil, Gas & Consumable Fuels industry and the overall market, EOG RESOURCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • In its most recent trading session, EOG 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. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

EOG Resources, Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas and crude oil primarily in the United States, Canada, the Republic of Trinidad, Tobago, the United Kingdom, and the People's Republic of China. The company has a P/E ratio of 60.6, below the average energy industry P/E ratio of 61 and above the S&P 500 P/E ratio of 17.7. EOG has a market cap of $25.4 billion and is part of the basic materials sector and energy industry. Shares are up 2.8% year to date as of the close of trading on Thursday.

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

Rating Change #7

Medtronic ( MDT) 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, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.7%. Since the same quarter one year prior, revenues slightly increased by 2.4%. 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.
  • MEDTRONIC INC's earnings per share declined by 16.3% 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, MEDTRONIC INC increased its bottom line by earning $2.86 versus $2.79 in the prior year. This year, the market expects an improvement in earnings ($3.46 versus $2.86).
  • Net operating cash flow has decreased to $793.00 million or 35.89% 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.
  • 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 Health Care Equipment & Supplies industry. The net income has decreased by 18.6% when compared to the same quarter one year ago, dropping from $954.00 million to $776.00 million.

Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. The company has a P/E ratio of 11.4, equal to the average health services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Medtronic has a market cap of $34.6 billion and is part of the health care sector and health services industry. Shares are down 15.7% year to date as of the close of trading on Friday.

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

Rating Change #6

JPMorgan Chase ( JPM) 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, impressive record of earnings per share growth and increase in net income. However, as a counter to these strengths, we also find weaknesses including generally poor debt management and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • JPM's revenue growth has slightly outpaced the industry average of 0.3%. Since the same quarter one year prior, revenues slightly increased by 8.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • JPMORGAN CHASE & CO has improved earnings per share by 16.5% 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, JPMORGAN CHASE & CO increased its bottom line by earning $3.96 versus $2.22 in the prior year. This year, the market expects an improvement in earnings ($5.03 versus $3.96).
  • 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 Financial Services industry and the overall market on the basis of return on equity, JPMORGAN CHASE & CO has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • In its most recent trading session, JPM 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.
  • The debt-to-equity ratio is very high at 3.36 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.

JPMorgan Chase & Co., a financial holding company, provides various financial services worldwide. The company has a P/E ratio of 7.7, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. JPMorgan Chase has a market cap of $140 billion and is part of the financial sector and banking industry. Shares are down 13.1% year to date as of the close of trading on Tuesday.

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

Rating Change #5

MainSource Financial Group ( MSFG) 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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 385.71% and other important driving factors, this stock has surged by 32.78% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MSFG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • MAINSOURCE FINL GROUP 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 year. We feel that this trend should continue. During the past fiscal year, MAINSOURCE FINL GROUP INC turned its bottom line around by earning $0.58 versus -$3.33 in the prior year. This year, the market expects an improvement in earnings ($1.03 versus $0.58).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 252.2% when compared to the same quarter one year prior, rising from $2.17 million to $7.63 million.
  • The gross profit margin for MAINSOURCE FINL GROUP INC is currently very high, coming in at 77.20%. It has increased significantly from the same period last year. Along with this, the net profit margin of 17.90% is above that of the industry average.
  • MSFG, with its decline in revenue, underperformed when compared the industry average of 20.6%. Since the same quarter one year prior, revenues slightly dropped by 6.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

MainSource Financial Group, Inc. operates as the holding company for MainSource Bank, which is a state-chartered bank that provides a range of financial services in the United States. The company has a P/E ratio of 8.9, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. MainSource Financial Group has a market cap of $165.6 million and is part of the financial sector and banking industry. Shares are down 21.8% year to date as of the close of trading on Wednesday.

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

Rating Change #4

Casual Male Retail Group ( CMRG) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, revenue growth, attractive valuation levels, solid stock price performance and impressive record of earnings per share growth. 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:
  • CMRG's revenue growth has slightly outpaced the industry average of 6.2%. Since the same quarter one year prior, revenues slightly increased by 3.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 48.88% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CMRG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CASUAL MALE RETAIL GRP INC has improved earnings per share by 16.7% 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, CASUAL MALE RETAIL GRP INC increased its bottom line by earning $0.33 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($0.42 versus $0.33).
  • 48.30% is the gross profit margin for CASUAL MALE RETAIL GRP INC which we consider to be strong. 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 6.50% trails the industry average.

Casual Male Retail Group, Inc., together with its subsidiaries, operates as a specialty retailer of men's apparel in the United States, Canada, and Europe. The company has a P/E ratio of 10.8, above the average retail industry P/E ratio of 10.5 and below the S&P 500 P/E ratio of 17.7. Casual Male Retail Group has a market cap of $167.1 million and is part of the services sector and retail industry. Shares are down 15.2% year to date as of the close of trading on Friday.

You can view the full Casual Male Retail Group Ratings Report or get investment ideas from our investment research center.

Rating Change #3

Kensey Nash Corporation ( KNSY) 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, largely solid financial position with reasonable debt levels by most measures 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:
  • Compared to its closing price of one year ago, KNSY's share price has jumped by 26.52%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp 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 other strengths this company displays justify these higher price levels.
  • Despite currently having a low debt-to-equity ratio of 0.35, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 4.03 is very high and demonstrates very strong liquidity.
  • The gross profit margin for KENSEY NASH CORP is currently very high, coming in at 70.90%. Regardless of KNSY'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 15.70% trails the industry average.
  • KNSY, with its decline in revenue, underperformed when compared the industry average of 6.7%. Since the same quarter one year prior, revenues fell by 14.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • KENSEY NASH CORP's earnings per share declined by 43.3% 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, KENSEY NASH CORP reported lower earnings of $0.19 versus $1.81 in the prior year. This year, the market expects an improvement in earnings ($1.87 versus $0.19).

Kensey Nash Corporation, a medical device company, engages in the field of regenerative medicine utilizing its proprietary collagen and synthetic polymer technology to help repair damaged or diseased tissues. The company has a P/E ratio of 58, below the average health services industry P/E ratio of 64.7 and above the S&P 500 P/E ratio of 17.7. Kensey Nash has a market cap of $237.3 million and is part of the health care sector and health services industry. Shares are up 4% year to date as of the close of trading on Friday.

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

Rating Change #2

Global Power Equipment Group ( GLPW) 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, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • GLPW's revenue growth has slightly outpaced the industry average of 14.4%. Since the same quarter one year prior, revenues rose by 19.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • GLPW 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. To add to this, GLPW has a quick ratio of 2.44, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, GLOBAL POWER EQUIPMENT GROUP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Powered by its strong earnings growth of 440.74% and other important driving factors, this stock has surged by 63.74% 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.

Global Power Equipment Group Inc. designs, engineers, and manufactures heat recovery and auxiliary power equipment for the utility and industrial sectors. The company has a P/E ratio of 6.1, equal to the average industrial industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Global Power Equipment Group has a market cap of $412.7 million and is part of the industrial goods sector and industrial industry. Shares are up 9.4% year to date as of the close of trading on Thursday.

You can view the full Global Power Equipment Group Ratings Report or get investment ideas from our investment research center.

Rating Change #1

Scholastic Corporation ( SCHL) 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, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • SCHL's revenue growth trails the industry average of 19.6%. Since the same quarter one year prior, revenues slightly increased by 1.4%. 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 gross profit margin for SCHOLASTIC CORP is rather high; currently it is at 56.20%. Regardless of SCHL'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 4.50% trails the industry average.
  • SCHOLASTIC CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, SCHOLASTIC CORP reported lower earnings of $1.25 versus $1.58 in the prior year. This year, the market expects an improvement in earnings ($1.93 versus $1.25).
  • Despite currently having a low debt-to-equity ratio of 0.35, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.77 is weak.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

Scholastic Corporation, together with its subsidiaries, operates as a children's publishing, education, and media company primarily in the United States. The company has a P/E ratio of 19.7, below the average media industry P/E ratio of 21.9 and above the S&P 500 P/E ratio of 17.7. Scholastic has a market cap of $746.6 million and is part of the services sector and media industry. Shares are down 11.2% year to date as of the close of trading on Tuesday.

You can view the full Scholastic 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.