5 Stocks With Upgrades: LCC, ARRS, PKI, NWL, LII

NEW YORK ( TheStreet) -- These five stocks received upgrades from TheStreet Ratings on Tuesday: US Airways ( LCC), Arris Group ( ARRS), PerkinElmer ( PKI), Newell Rubbermaid ( NWL) and Lennox International ( LII).

US Airways

The airline is in the sights of rival Delta ( DAL), which is thinking of possibly making a bid for US Airways, according to a report last week in The Wall Street Journal.

In other recent news, US Airways reached a tentative agreement with the Association of Flight Attendants on Jan. 27.

The company last week reported fourth-quarter profit excluding net special charges of $21 million, or 13 cents a share, a decrease from profit of $28 million, or 17 cents, a year earlier.

"Better than expected mainline passenger revenue was the main driver of the beat, with mainline passenger revenue of $2,054M 3.7% above our $1,981M forecast on 2.8% higher ASMs (capacity) and 1% better PRASM (Passenger Revenue per ASM, or unit revenue)," Sterne Agee analysts wrote in a report on Monday.

Shares of US Airways were upgraded to a hold from a sell by TheStreet Ratings.

US Airways receives a C- grade from the TheStreet Ratings. The stock closed Monday at $8.52.

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Arris Group

The broadband communications data supplier is scheduled to report fourth-quarter earnings on Feb. 8. Analysts, on average, expect profit of 20 cents a share on revenue of $286.38 million.

Jefferies analysts noted that Time Warner's ( TWX) 20% increase in fourth-quarter capital expenditures from last year will benefit Arris.

"Time Warner is a historically important customer for ARRS in particular -- the company contributed 12% of Q3'11 sales but has contributed more than 25% in some quarters (27% in Q4'09, 27% in Q2'08 at 27%, and 26% in Q1'08 for example)," Jefferies analysts wrote in a Jan. 26 report.

Shares of Arris Group were upgraded to a buy from a hold by TheStreet Ratings.

TheStreet Ratings gives Arris Group a B- grade with a price target of $14.29. The stock closed Monday at $11.75.


PerkinElmer

The industrial technology and service provider is scheduled to report fourth-quarter earnings on Thursday. Analysts, on average, expect earnings of 51 cents a share on $537.06 million in revenue.

"We generally believe PKI's business, with its overexposure to services and diagnostics and underexposure to academic research, will prove more resilient than investors expect in a downturn," Leerink Swann analysts wrote in a report on Jan. 6. "However, we believe all of PKI's asset shuffling in recent years has saddled the company with a complexity discount. With a shift toward debt repayment, we believe the portfolio mix will stabilize in 2012 and the company will be afforded an opportunity to enable investors to better understand the synergies between its existing mix of businesses and better appreciate some of the growth optionality of recent acquisitions."

Shares of PerkinElmer were upgraded to a buy from a hold by TheStreet Ratings.

PerkinElmer gets a B grade from TheStreet Ratings with a $27.71 price target. The stock closed at $23.82 on Monday.

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Newell Rubbermaid

The consumer and commercial products maker last week reported fourth-quarter operating income on a normalized basis of $176.8 million, an increase from $149.1 million the previous year. Earnings per share rose to 40 cents from 33 cents.

"NWL's 4Q results were mixed, although they exhibited continued top-line momentum, while initial 2012 guidance appears reasonable given the current macro environment," Oppenheimer analysts wrote in a Jan. 29 report. "We have been impressed by the company's trajectory under new President and CEO Mike Polk, and the stock has performed very well since his arrival last summer. Thus, while we are maintaining our Perform rating on the shares, particularly given Friday's bounce, we suggest investors look to be opportunistic on pullbacks."

Shares of Newell Rubbermaid were upgraded to a buy from a hold by TheStreet Ratings.

TheStreet Ratings gives Newell Rubbermaid a B grade with a $21.74 price target. The stock closed at $18.60 on Monday.


Lennox International

The heating, ventilation, air conditioning and refrigeration company is scheduled to report its fourth-quarter earnings on Thursday. Analysts, on average, expect profit of 49 cents a share on $800.06 million in revenue.

KeyBanc Capital Markets analysts downgraded Lennox International to a hold from a buy on Jan. 18.

"Our channel work points to continued weak demand in the domestic residential HVAC market due to a tough consumer environment and mild winter temperatures, which likely supports soft 4Q11 performance, and more importantly a slow start to the new year," KeyBanc analysts wrote in a Jan. 18 report. "LII and WSO shares have outperformed since our late August 2011 upgrade, and while our long-term fundamental view is favorable, the residential HVAC-related names under our coverage appear fairly valued given near-term demand challenges and persisting market uncertainty moving into 2012."

But shares of Lennox International were upgraded to a buy from a hold by TheStreet Ratings.

Lennox International gets a B grade from TheStreet Ratings with a price target of $43.45. The stock closed Monday at $36.75.

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-- Written by Alexandra Zendrian

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