TheStreet Ratings Top 10 Rating Changes

NEW YORK ( TheStreet Ratings) -- Every trading day TheStreet Ratings' stock model reviews the investment ratings on around 4,700 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 123 U.S. common stocks for week ending May 4, 2012. 52 stocks were upgraded and 71 stocks were downgraded by our stock model.

Rating Change #10

Eldorado Gold Corp ( EGO) 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 2.0%. Since the same quarter one year prior, revenues rose by 23.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • EGO's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • EGO has underperformed the S&P 500 Index, declining 21.88% from its price level of one year ago. 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.
  • 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 Metals & Mining industry and the overall market, ELDORADO GOLD CORP's return on equity is below that of both the industry average and the S&P 500.
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Eldorado Gold Corporation, together with its subsidiaries, engages in the exploration, development, mining, and production of gold properties in Brazil, China, Greece, and Turkey. The company has a P/E ratio of 23.8, equal to the average metals & mining industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Eldorado has a market cap of $9.79 billion and is part of the basic materials sector and metals & mining industry. Shares are down 4.4% year to date as of the close of trading on Friday.

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

Rating Change #9

Weatherford International Ltd ( WFT) 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, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 14.9%. Since the same quarter one year prior, revenues rose by 26.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • WEATHERFORD INTERNATIONAL 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. This trend suggests that the performance of the business is improving. During the past fiscal year, WEATHERFORD INTERNATIONAL turned its bottom line around by earning $0.34 versus -$0.20 in the prior year. This year, the market expects an improvement in earnings ($1.24 versus $0.34).
  • WFT's debt-to-equity ratio of 0.80 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should 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.
  • The gross profit margin for WEATHERFORD INTERNATIONAL is rather low; currently it is at 20.30%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 3.40% trails that of the industry average.
  • WFT'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 33.88%, 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.
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Weatherford International Ltd. provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. The company has a P/E ratio of 42.7, above the average energy industry P/E ratio of 33.8 and above the S&P 500 P/E ratio of 17.7. Weatherford International has a market cap of $11.03 billion and is part of the basic materials sector and energy industry. Shares are down 2.5% year to date as of the close of trading on Tuesday.

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

Rating Change #8

Mosaic Co ( MOS) 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and disappointing return on equity.

Highlights from the ratings report include:
  • MOS's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MOS has a quick ratio of 2.39, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has increased to $404.50 million or 10.54% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -35.11%.
  • MOS, with its decline in revenue, slightly underperformed the industry average of 2.8%. Since the same quarter one year prior, revenues slightly dropped by 1.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for MOSAIC CO is currently lower than what is desirable, coming in at 29.60%. It has decreased significantly from the same period last year. Regardless of the weak results of the gross profit margin, the net profit margin of 12.50% is above that of 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 Chemicals industry. The net income has significantly decreased by 49.6% when compared to the same quarter one year ago, falling from $542.10 million to $273.30 million.
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The Mosaic Company engages in the production and marketing of concentrated phosphate- and potash-based crop nutrients for the agriculture industry worldwide. The company has a P/E ratio of 11.3, equal to the average chemicals industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Mosaic has a market cap of $15.73 billion and is part of the basic materials sector and chemicals industry. Shares are up 4.7% year to date as of the close of trading on Tuesday.

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

Rating Change #7

Valeant Pharmaceuticals International Inc ( VRX) 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 find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:
  • VRX's very impressive revenue growth greatly exceeded the industry average of 5.2%. Since the same quarter one year prior, revenues leaped by 51.5%. 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.
  • Net operating cash flow has significantly increased by 93.82% to $167.33 million when compared to the same quarter last year. In addition, VALEANT PHARMACEUTICALS INTL has also vastly surpassed the industry average cash flow growth rate of -50.41%.
  • 40.10% is the gross profit margin for VALEANT PHARMACEUTICALS INTL which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, VRX's net profit margin of -1.50% significantly underperformed when compared to the industry average.
  • 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. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • 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 Pharmaceuticals industry. The net income has significantly decreased by 299.3% when compared to the same quarter one year ago, falling from $6.48 million to -$12.92 million.
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Valeant Pharmaceuticals International, Inc., a specialty pharmaceutical company, develops, manufactures, and markets pharmaceutical products in the areas of neurology, dermatology, and branded generics. The company has a P/E ratio of 115.2, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Valeant Pharmaceuticals International has a market cap of $17.24 billion and is part of the health care sector and drugs industry. Shares are up 9.7% year to date as of the close of trading on Friday.

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

Rating Change #6

Goldcorp Inc ( GG) 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, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • GG's revenue growth has slightly outpaced the industry average of 2.4%. Since the same quarter one year prior, revenues rose by 10.9%. 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.
  • GG's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, GG has a quick ratio of 2.29, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for GOLDCORP INC is rather high; currently it is at 58.60%. Regardless of GG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GG's net profit margin of 35.50% significantly outperformed against the industry.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 31.48%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 37.03% 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'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 Metals & Mining industry and the overall market, GOLDCORP INC's return on equity is below that of both the industry average and the S&P 500.
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Goldcorp Inc. engages in the acquisition, development, exploration, and operation of precious metal properties. It primarily explores gold, silver, copper, lead, and zinc. The company has a P/E ratio of 17.9, equal to the average metals & mining industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Goldcorp has a market cap of $31.69 billion and is part of the basic materials sector and metals & mining industry. Shares are down 13.5% year to date as of the close of trading on Tuesday.

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

Rating Change #5

Lincoln National Corp ( LNC) 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 and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.0%. Since the same quarter one year prior, revenues slightly increased by 0.0%. 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.
  • 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.
  • LINCOLN NATIONAL CORP's earnings per share declined by 20.9% 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 year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, LINCOLN NATIONAL CORP reported lower earnings of $0.80 versus $2.44 in the prior year. This year, the market expects an improvement in earnings ($4.06 versus $0.80).
  • The change in net income from the same quarter one year ago has exceeded that of the Insurance industry average, but is less than that of the S&P 500. The net income has significantly decreased by 27.6% when compared to the same quarter one year ago, falling from $339.00 million to $245.30 million.
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Lincoln National Corporation, through its subsidiaries, engages in multiple insurance and retirement businesses in the United States. It sells a range of wealth protection, accumulation, and retirement income products and solutions. The company has a P/E ratio of 26.2, below the average insurance industry P/E ratio of 27.1 and above the S&P 500 P/E ratio of 17.7. Lincoln National Corp (Radnor has a market cap of $7.11 billion and is part of the financial sector and insurance industry. Shares are up 26.6% year to date as of the close of trading on Thursday.

You can view the full Lincoln National Corp (Radnor Ratings Report or get investment ideas from our investment research center.

Rating Change #4

Talisman Energy Inc ( TLM) 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, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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 189.3% when compared to the same quarter one year prior, rising from -$326.00 million to $291.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 14.6%. Since the same quarter one year prior, revenues slightly increased by 5.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for TALISMAN ENERGY INC is currently very high, coming in at 72.40%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.90% is above that of the industry average.
  • Net operating cash flow has increased to $980.00 million or 10.98% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.48%.
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Talisman Energy Inc., an upstream oil and gas company, engages in the exploration, development, production, transportation, and marketing of crude oil, natural gas, and natural gas liquids. It primarily operates in North America, the North Sea, and southeast Asia. The company has a P/E ratio of 35.3, above the average energy industry P/E ratio of 34.4 and above the S&P 500 P/E ratio of 17.7. Talisman Energy has a market cap of $13.47 billion and is part of the basic materials sector and energy industry. Shares are down 0.4% year to date as of the close of trading on Wednesday.

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

Rating Change #3

General Growth Properties Inc ( GGP) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance 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:
  • This stock has managed to rise its share value by 7.30% over the past twelve months. 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.
  • GENERAL GROWTH PPTYS INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. 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, GENERAL GROWTH PPTYS INC continued to lose money by earning -$0.70 versus -$1.61 in the prior year. This year, the market expects an improvement in earnings (-$0.11 versus -$0.70).
  • GGP, with its decline in revenue, underperformed when compared the industry average of 19.2%. Since the same quarter one year prior, revenues slightly dropped by 9.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Currently the debt-to-equity ratio of 1.96 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated.
  • 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 Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 3589.0% when compared to the same quarter one year ago, falling from $5.66 million to -$197.62 million.
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General Growth Properties, Inc. operates as a real estate investment trust in the United States. It operates in two segments, Retail and Other, and Master Planned Communities. General Growth has a market cap of $16.69 billion and is part of the financial sector and real estate industry. Shares are up 17.1% year to date as of the close of trading on Wednesday.

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

Rating Change #2

P.T. Telekomunikasi Indonesia Tbk ( TLK) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its 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 somewhat weak growth in earnings per share.

Highlights from the ratings report include:
  • The gross profit margin for TELEKOMUNIKASI INDONESIA is rather high; currently it is at 63.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.00% is above that of the industry average.
  • After a year of stock price fluctuations, the net result is that TLK'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. 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 current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that TLK's debt-to-equity ratio is low, the quick ratio, which is currently 0.68, displays a potential problem in covering short-term cash needs.
  • TLK, with its decline in revenue, slightly underperformed the industry average of 2.6%. Since the same quarter one year prior, revenues slightly dropped by 5.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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 Diversified Telecommunication Services industry and the overall market on the basis of return on equity, TELEKOMUNIKASI INDONESIA has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
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Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk and its subsidiaries provide telecommunication and network services worldwide. The company has a P/E ratio of 13.6, below the average telecommunications industry P/E ratio of 14.9 and below the S&P 500 P/E ratio of 17.7. P.T. Telekomunikasi Indonesia Tbk has a market cap of $17.89 billion and is part of the technology sector and telecommunications industry. Shares are up 17.8% year to date as of the close of trading on Tuesday.

You can view the full P.T. Telekomunikasi Indonesia Tbk Ratings Report or get investment ideas from our investment research center.

Rating Change #1

LyondellBasell Industries NV ( LYB) 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, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.36, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.19, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 316.74% to $921.00 million when compared to the same quarter last year. In addition, LYONDELLBASELL INDUSTRIES NV has also vastly surpassed the industry average cash flow growth rate of -35.11%.
  • LYB, with its decline in revenue, slightly underperformed the industry average of 2.8%. Since the same quarter one year prior, revenues slightly dropped by 3.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Chemicals industry and the overall market on the basis of return on equity, LYONDELLBASELL INDUSTRIES NV has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
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LyondellBasell Industries N.V. manufacturers and sells chemicals and polymers, refines crude oil, produces gasoline blending components, and develops and licenses technologies for the production of polymers. The company has a P/E ratio of 12.2, equal to the average chemicals industry P/E ratio and below the S&P 500 P/E ratio of 17.7. LyondellBasell has a market cap of $26.27 billion and is part of the basic materials sector and chemicals industry. Shares are up 28.6% year to date as of the close of trading on Tuesday.

You can view the full LyondellBasell 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.

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