NEW YORK ( TheStreet) -- The following stocks received upgrades to buy from TheStreet Ratings on Friday and are undervalued compared with their peers: Cadence Design Systems ( CDNS), Energy XXI ( EXXI), Atlas Air Worldwide ( AAWW) and Myriad Genetics ( MYGN). Cadence Design Systems The electronic design automation software and hardware company on Wednesday reported fourth-quarter earnings of $11 million, or 4 cents a share. In the previous fourth quarter, Cadence Design posted a loss of $37 million, or 14 cents a share. The stock hit a 52-week high of $11.84 on Thursday. The stock's 52-week low of $8.09 was set on Aug. 19. The stock has risen 12.02% year to date. "Management took a bold stance during the earnings call when it outlined plans to achieve a mid-20s operating margin in 2013," D.A. Davidson analysts wrote in a report Thursday. "While margins should benefit from solid revenue growth and the leverage already imbedded in the model, if revenue growth wanes, management appears willing to implement meaningful cost reductions to meet this aggressive goal. This achievement would bring CDNS' operating margins in line with industry-leader Synopsys (SNPS* - BUY - $29.49) and ultimately drive an EPS run rate in excess of $1.00 per year exiting 2013." Six of the eight analysts who cover Cadence consider it a buy. Two analysts rated it a hold. Cadence Design's estimated price-to-earnings ratio for next year is 13.55. The average for the software industry is 33.34. Rovi ( ROVI) has a low forward P/E ratio of 12.74. TheStreet Ratings gives Cadence a B- grade with $14.18 price target. The stock closed Thursday at $11.64.
Atlas Air Worldwide The aircraft delivery company announced Wednesday that it financed its six remaining B747-8F aircraft deliveries. Atlas Air Worldwide's estimated P/E for next year is 8.85. The average for the delivery services area of the market is 14.25. "Despite the difficulties Atlas had in 3Q11, the earnings potential in 2012 should continue to be strong for the company," Dahlman Rose analysts wrote in a report in November. "Management lowered EPS expectations for 2011 to +$4.30, down from +$5.00 and compared to the initial expectations of +$5.30. We are intrigued by the outlook for 2012 for two reasons. The new -8F is finally in service, and each aircraft adds $0.04/share/month. The other new business is the passenger AMC business, which should also contribute to the bottom line." Eight of the 12 analysts who cover Atlas rated it a buy. Four considered it a hold. TheStreet Ratings gives Atlas Air a B- grade with a $56.66 price target. The stock closed Thursday at $48.67 and has risen 31.23% year to date.
The following companies also received upgrades to buy from TheStreet Ratings Friday.
- Hyatt Hotels: (H) B- grade from TheStreet Ratings and a $49.61 price target. The stock closed Thursday at $42.84.
- Intersil: (ISIL) B grade from TheStreet Ratings and a $13.48 price target. The stock closed Thursday at $11.02.