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 74 U.S. common stocks for week ending June 8, 2012. 21 stocks were upgraded and 53 stocks were downgraded by our stock model.

Rating Change #10

United States Antimony Corporation ( UAMY) 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 and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • UAMY's revenue growth has slightly outpaced the industry average of 1.1%. Since the same quarter one year prior, revenues slightly increased by 7.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • UAMY's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.39, which illustrates the ability to avoid short-term cash problems.
  • This stock has managed to rise its share value by 41.60% over the past twelve months. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • U S ANTIMONY CORP has shown no change in earnings for its most recently reported quarter when compared with the same quarter a year earlier. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, U S ANTIMONY CORP's EPS of $0.01 remained unchanged from the prior years' EPS of $0.01. This year, the market expects an improvement in earnings ($0.06 versus $0.01).
  • 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 Metals & Mining industry. The net income has significantly decreased by 357.8% when compared to the same quarter one year ago, falling from $0.05 million to -$0.12 million.

United States Antimony Corporation engages in the production and sale of antimony and zeolite products in the Untied States. The company has a P/E ratio of 35.3, below the average metals & mining industry P/E ratio of 353 and above the S&P 500 P/E ratio of 17.7. United States Antimony has a market cap of $214.6 million and is part of the basic materials sector and metals & mining industry. Shares are up 47.5% year to date as of the close of trading on Tuesday.

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

Rating Change #9

Headwaters Inc ( HW) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including generally poor debt management, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 13.6%. Since the same quarter one year prior, revenues rose by 16.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 84.04% and other important driving factors, this stock has surged by 36.85% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • HEADWATERS 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, HEADWATERS INC reported poor results of -$2.20 versus -$0.82 in the prior year. This year, the market expects an improvement in earnings (-$0.38 versus -$2.20).
  • The debt-to-equity ratio is very high at 37.32 and currently higher than the industry average, implying that there is very poor management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, HW maintains a poor quick ratio of 0.97, which illustrates the inability to avoid short-term cash problems.
  • 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 Construction Materials industry and the overall market, HEADWATERS INC's return on equity significantly trails that of both the industry average and the S&P 500.

Headwaters Incorporated provides products, technologies, and services for the building products, construction material, and energy industries primarily in the United States and Canada. Headwaters has a market cap of $269.4 million and is part of the industrial goods sector and materials & construction industry. Shares are up 86.9% year to date as of the close of trading on Friday.

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

Rating Change #8

Government Properties Income Trust ( GOV) 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, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, reasonable 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:
  • The revenue growth came in higher than the industry average of 17.8%. Since the same quarter one year prior, revenues rose by 28.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels.
  • GOVERNMENT PPTYS INCOME TR has improved earnings per share by 12.0% 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. During the past fiscal year, GOVERNMENT PPTYS INCOME TR increased its bottom line by earning $1.06 versus $0.83 in the prior year. This year, the market expects an improvement in earnings ($1.07 versus $1.06).
  • Net operating cash flow has significantly increased by 75.35% to $29.31 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 25.40%.

Government Properties Income Trust operates as a real estate investment trust (REIT) in the United States. It primarily owns and leases office buildings that are leased mainly to government tenants. The company has a P/E ratio of 19.3, equal to the average real estate industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Government Properties Income has a market cap of $988.9 million and is part of the financial sector and real estate industry. Shares are down 6.9% year to date as of the close of trading on Tuesday.

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

Rating Change #7

Collective Brands Inc ( PSS) 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, increase in net income, revenue growth, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Specialty Retail industry average. The net income increased by 25.8% when compared to the same quarter one year prior, rising from $26.40 million to $33.20 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.6%. Since the same quarter one year prior, revenues slightly increased by 5.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 28.57% and other important driving factors, this stock has surged by 53.37% 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, PSS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has significantly increased by 187.65% to $36.20 million when compared to the same quarter last year. In addition, COLLECTIVE BRANDS INC has also vastly surpassed the industry average cash flow growth rate of 20.11%.
  • COLLECTIVE BRANDS INC has improved earnings per share by 28.6% 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, COLLECTIVE BRANDS INC swung to a loss, reporting -$2.69 versus $1.74 in the prior year. This year, the market expects an improvement in earnings ($1.39 versus -$2.69).

Collective Brands, Inc. engages in the provision of footwear and related accessories worldwide. Collective has a market cap of $1.29 billion and is part of the services sector and retail industry. Shares are up 47.3% year to date as of the close of trading on Friday.

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

Rating Change #6

Essex Property Trust ( ESS) 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, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. 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 net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 168.8% when compared to the same quarter one year prior, rising from $8.96 million to $24.09 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 17.8%. Since the same quarter one year prior, revenues rose by 12.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has increased to $72.16 million or 25.91% when compared to the same quarter last year. In addition, ESSEX PROPERTY TRUST has also modestly surpassed the industry average cash flow growth rate of 25.40%.
  • 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.
  • ESSEX PROPERTY TRUST 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, ESSEX PROPERTY TRUST reported lower earnings of $1.01 versus $1.14 in the prior year. This year, the market expects an improvement in earnings ($2.17 versus $1.01).

Essex Property Trust, Inc. is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It primarily engages in acquiring, developing, redeveloping, and managing multifamily apartment communities. The company has a P/E ratio of 127.6, above the average real estate industry P/E ratio of 90.2 and above the S&P 500 P/E ratio of 17.7. Essex Property has a market cap of $5.21 billion and is part of the financial sector and real estate industry. Shares are up 4.6% year to date as of the close of trading on Tuesday.

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

Rating Change #5

Tiffany & Co ( TIF) 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, notable return on equity and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:
  • TIF's revenue growth has slightly outpaced the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 7.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the 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 Specialty Retail industry and the overall market, TIFFANY & CO's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for TIFFANY & CO is rather high; currently it is at 62.00%. Regardless of TIF's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TIF's net profit margin of 10.00% compares favorably to the industry average.
  • Net operating cash flow has significantly decreased to -$120.59 million or 172.54% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • TIF'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 25.32%, 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. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, TIF is still more expensive than most of the other companies in its industry.

Tiffany & Co., through its subsidiaries, engages in the design, manufacture, and retail of fine jewelry worldwide. The company has a P/E ratio of 15.9, equal to the average specialty retail industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Tiffany has a market cap of $6.89 billion and is part of the services sector and specialty retail industry. Shares are down 17.4% year to date as of the close of trading on Tuesday.

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

Rating Change #4

Calpine Corp ( CPN) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally weak debt management, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • The debt-to-equity ratio is very high at 2.44 and currently higher than the industry average, implying that there is very poor management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, CPN maintains a poor quick ratio of 0.71, which illustrates the inability to avoid short-term cash problems.
  • Net operating cash flow has significantly decreased to $71.00 million or 52.34% 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 gross profit margin for CALPINE CORP is currently lower than what is desirable, coming in at 31.00%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -0.70% trails the industry average.
  • CPN, with its decline in revenue, underperformed when compared the industry average of 12.1%. Since the same quarter one year prior, revenues fell by 17.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 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 Independent Power Producers & Energy Traders industry and the overall market on the basis of return on equity, CALPINE CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

Calpine Corporation, an independent wholesale power generation company, owns and operates natural gas-fired and geothermal power plants in North America. It operates natural gas-fired combustion turbines and renewable geothermal conventional steam turbines, as well as cogeneration power plants. The company has a P/E ratio of 83.5, equal to the average utilities industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Calpine has a market cap of $8.07 billion and is part of the utilities sector and utilities industry. Shares are up 2.8% year to date as of the close of trading on Tuesday.

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

Rating Change #3

Transocean Ltd ( RIG) 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, 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 Energy Equipment & Services industry. The net income has significantly decreased by 86.5% when compared to the same quarter one year ago, falling from $310.00 million to $42.00 million.
  • 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 Energy Equipment & Services industry and the overall market, TRANSOCEAN LTD'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 39.85%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 61.90% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • TRANSOCEAN LTD 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, TRANSOCEAN LTD swung to a loss, reporting -$17.99 versus $2.85 in the prior year. This year, the market expects an improvement in earnings ($2.90 versus -$17.99).
  • RIG's debt-to-equity ratio of 0.86 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 1.08 is sturdy.

Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. Transocean has a market cap of $14.2 billion and is part of the basic materials sector and energy industry. Shares are up 5.5% year to date as of the close of trading on Tuesday.

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

Rating Change #2

Canadian Natural Resources Ltd ( CNQ) 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, compelling growth in net income and expanding profit margins. 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:
  • CNQ's revenue growth has slightly outpaced the industry average of 11.9%. Since the same quarter one year prior, revenues rose by 19.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for CANADIAN NATURAL RESOURCES is rather high; currently it is at 53.30%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.10% is above that of the industry average.
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.29 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CANADIAN NATURAL RESOURCES's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • CNQ'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 33.82%, 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. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

Canadian Natural Resources Limited engages in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas liquids (NGLs), and natural gas. The company has a P/E ratio of 9.9, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Canadian Natural has a market cap of $30.15 billion and is part of the basic materials sector and energy industry. Shares are down 26.6% year to date as of the close of trading on Tuesday.

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

Rating Change #1

Total SA ( TOT) 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 largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.9%. Since the same quarter one year prior, revenues slightly increased by 5.7%. 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. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.78 is weak.
  • Net operating cash flow has decreased to $7,023.02 million or 13.34% 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 underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry average. The net income has decreased by 12.8% when compared to the same quarter one year ago, dropping from $5,596.61 million to $4,882.91 million.

TOTAL S.A., together with its subsidiaries, operates as an integrated oil and gas company worldwide. The company operates in three segments: Upstream, Downstream, and Chemicals. The company has a P/E ratio of 7.2, above the average energy industry P/E ratio of 6.1 and below the S&P 500 P/E ratio of 17.7. Total has a market cap of $96.06 billion and is part of the basic materials sector and energy industry. Shares are down 16.1% year to date as of the close of trading on Wednesday.

You can view the full Total 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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