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 61 U.S. common stocks for week ending June 15, 2012. 18 stocks were upgraded and 43 stocks were downgraded by our stock model.

Rating Change #10

Apache Corporation ( APA) 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • APA's revenue growth has slightly outpaced the industry average of 11.9%. Since the same quarter one year prior, revenues rose by 14.9%. 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.
  • APA's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.73 is somewhat weak and could be cause for future problems.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 30.51%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 30.06% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 29.7% when compared to the same quarter one year ago, falling from $1,134.00 million to $797.00 million.

Apache Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. The company has a P/E ratio of 7.8, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Apache has a market cap of $32.43 billion and is part of the basic materials sector and energy industry. Shares are down 10.4% year to date as of the close of trading on Tuesday.

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

Rating Change #9

Devon Energy Corp ( DVN) 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, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, unimpressive growth in net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • DVN's revenue growth has slightly outpaced the industry average of 11.9%. Since the same quarter one year prior, revenues rose by 16.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for DEVON ENERGY CORP is rather high; currently it is at 62.30%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.70% is above that of the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.49, 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 1.32 is sturdy.
  • DVN'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 28.37%, 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.
  • Net operating cash flow has decreased to $1,026.00 million or 18.57% 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.

Devon Energy Corporation, an independent energy company, engages primarily in exploration, development, and production of oil, natural gas, and natural gas liquids. The company has a P/E ratio of 10.8, above the average energy industry P/E ratio of five and below the S&P 500 P/E ratio of 17.7. Devon Energy has a market cap of $22.78 billion and is part of the basic materials sector and energy industry. Shares are down 4.7% year to date as of the close of trading on Friday.

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

Rating Change #8

NYSE Euronext Inc ( NYX) has been downgraded by TheStreet Ratings from buy to hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.74 is somewhat weak and could be cause for future problems.
  • NYX, with its decline in revenue, underperformed when compared the industry average of 6.1%. Since the same quarter one year prior, revenues fell by 17.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • NYSE EURONEXT's earnings per share declined by 42.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NYSE EURONEXT increased its bottom line by earning $2.37 versus $2.20 in the prior year. For the next year, the market is expecting a contraction of 8.4% in earnings ($2.17 versus $2.37).
  • The gross profit margin for NYSE EURONEXT is currently lower than what is desirable, coming in at 27.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 9.10% trails that of the industry average.
  • Net operating cash flow has decreased to $200.00 million or 24.24% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

NYSE Euronext, through its subsidiaries, operates securities exchanges. It operates various stock exchanges, including the New York Stock Exchange (NYSE), NYSE Arca, Inc., and NYSE Amex LLC in the United States; and five European-based exchanges that comprise Euronext N.V. The company has a P/E ratio of 11.6, equal to the average financial services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. NYSE Euronext has a market cap of $6.24 billion and is part of the financial sector and financial services industry. Shares are down 7.9% year to date as of the close of trading on Thursday.

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

Rating Change #7

Leucadia National Corporation ( LUK) 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 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, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • LUK's very impressive revenue growth greatly exceeded the industry average of 6.3%. Since the same quarter one year prior, revenues leaped by 1103.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Financial Services industry. The net income increased by 4571.9% when compared to the same quarter one year prior, rising from $10.51 million to $490.88 million.
  • LUK's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.83 is somewhat weak and could be cause for future problems.
  • LUK'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 38.92%, 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.
  • 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. In comparison to the other companies in the Diversified Financial Services industry and the overall market, LEUCADIA NATIONAL CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

Leucadia National Corporation engages in beef processing, manufacturing, land based contract oil and gas drilling, gaming entertainment, real estate activities, medical product development, and winery operations in the United States and internationally. The company has a P/E ratio of 10.4, above the average conglomerates industry P/E ratio of 10.2 and below the S&P 500 P/E ratio of 17.7. Leucadia has a market cap of $5.08 billion and is part of the conglomerates sector and conglomerates industry. Shares are down 12% year to date as of the close of trading on Tuesday.

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

Rating Change #6

Buckeye Partners L.P. ( BPL) 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • BPL's revenue growth trails the industry average of 12.0%. Since the same quarter one year prior, revenues slightly increased by 0.6%. 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 increased to $181.60 million or 16.12% when compared to the same quarter last year. In addition, BUCKEYE PARTNERS LP has also modestly surpassed the industry average cash flow growth rate of 12.26%.
  • BUCKEYE PARTNERS LP's earnings per share declined by 31.6% in the most recent quarter compared to 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, BUCKEYE PARTNERS LP reported lower earnings of $1.25 versus $1.93 in the prior year. This year, the market expects an improvement in earnings ($2.83 versus $1.25).
  • 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 greatly underperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income has decreased by 21.9% when compared to the same quarter one year ago, dropping from $66.49 million to $51.96 million.
  • The share price of BUCKEYE PARTNERS LP has not done very well: it is down 19.28% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.

Buckeye Partners, L.P. owns and operates refined petroleum products pipeline systems in the United States. Its Pipelines and Terminals segment transports refined petroleum products and provides bulk storage and terminal throughput services in the continental United States. The company has a P/E ratio of 51.6, above the average energy industry P/E ratio of 48 and above the S&P 500 P/E ratio of 17.7. Buckeye Partners L.P has a market cap of $4.43 billion and is part of the basic materials sector and energy industry. Shares are down 23.4% year to date as of the close of trading on Monday.

You can view the full Buckeye Partners L.P Ratings Report or get investment ideas from our investment research center.

Rating Change #5

CBOE Holdings Inc ( CBOE) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and growth in earnings per share. 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 exceeded that of the S&P 500 and the Diversified Financial Services industry average. The net income increased by 1.7% when compared to the same quarter one year prior, going from $32.87 million to $33.42 million.
  • CBOE 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. Along with this, the company maintains a quick ratio of 2.51, which clearly demonstrates the ability to cover short-term cash needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Diversified Financial Services industry and the overall market, CBOE HOLDINGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for CBOE HOLDINGS INC is rather high; currently it is at 54.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.50% significantly outperformed against the industry average.
  • CBOE HOLDINGS INC's earnings per share improvement from the most recent quarter was slightly positive. 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, CBOE HOLDINGS INC increased its bottom line by earning $1.52 versus $0.98 in the prior year. This year, the market expects an improvement in earnings ($1.56 versus $1.52).

CBOE Holdings, Inc., through its subsidiaries, operates markets for the trading of listed options contracts. The company has a P/E ratio of 17.6, equal to the average financial services industry P/E ratio and equal to the S&P 500 P/E ratio of 17.7. CBOE has a market cap of $2.36 billion and is part of the financial sector and financial services industry. Shares are up 0.2% year to date as of the close of trading on Friday.

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

Rating Change #4

Omega Healthcare Investors Inc ( OHI) 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, solid stock price performance, compelling growth in net income, good cash flow from operations and expanding profit margins. 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:
  • OHI's revenue growth has slightly outpaced the industry average of 17.9%. 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.
  • 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, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • 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 541.1% when compared to the same quarter one year prior, rising from -$5.91 million to $26.08 million.
  • Net operating cash flow has increased to $49.54 million or 28.00% when compared to the same quarter last year. In addition, OMEGA HEALTHCARE INVS INC has also modestly surpassed the industry average cash flow growth rate of 25.82%.
  • The gross profit margin for OMEGA HEALTHCARE INVS INC is rather high; currently it is at 60.90%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 30.90% trails the industry average.

Omega Healthcare Investors, Inc. operates as a real estate investment trust (REIT) in the United States. The company invests in healthcare facilities, principally long-term healthcare facilities in the United States. The company has a P/E ratio of 25.8, below the average real estate industry P/E ratio of 26.1 and above the S&P 500 P/E ratio of 17.7. Omega Healthcare Investors has a market cap of $2.24 billion and is part of the financial sector and real estate industry. Shares are up 8.5% year to date as of the close of trading on Wednesday.

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

Rating Change #3

CYS Investments Inc ( CYS) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including generally poor debt management and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • CYS's very impressive revenue growth greatly exceeded the industry average of 17.9%. Since the same quarter one year prior, revenues leaped by 59.5%. 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.
  • 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. In comparison to the other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, CYS INVESTMENTS INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • 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. 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.
  • CYS INVESTMENTS INC's earnings per share declined by 10.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CYS INVESTMENTS INC increased its bottom line by earning $3.63 versus $1.67 in the prior year. For the next year, the market is expecting a contraction of 47.6% in earnings ($1.90 versus $3.63).
  • The debt-to-equity ratio is very high at 5.40 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.

No company description available. The company has a P/E ratio of 19.3, above the average real estate industry P/E ratio of four and above the S&P 500 P/E ratio of 17.7. CYS Investments has a market cap of $1.64 billion and is part of the financial sector and real estate industry. Shares are down 1.5% year to date as of the close of trading on Tuesday.

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

Rating Change #2

AutoNavi Holdings Ltd ( AMAP) has been upgraded by TheStreet Ratings from sell 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 reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 9.1%. Since the same quarter one year prior, revenues rose by 40.3%. 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.
  • AMAP 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. Along with this, the company maintains a quick ratio of 5.69, which clearly demonstrates the ability to cover short-term cash needs.
  • AUTONAVI HLDG LTD's earnings per share declined by 10.0% 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, AUTONAVI HLDG LTD increased its bottom line by earning $0.73 versus $0.40 in the prior year. This year, the market expects an improvement in earnings ($0.96 versus $0.73).
  • 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 greatly underperformed compared to the Software industry average. The net income has decreased by 15.9% when compared to the same quarter one year ago, dropping from $10.62 million to $8.93 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. When compared to other companies in the Software industry and the overall market, AUTONAVI HLDG LTD's return on equity is below that of both the industry average and the S&P 500.

AutoNavi Holdings Limited provides digital map content, and navigation and location-based solutions in the People's Republic of China (PRC). The company has a P/E ratio of 15.5, below the average computer software & services industry P/E ratio of 18.2 and below the S&P 500 P/E ratio of 17.7. AutoNavi has a market cap of $606.1 million and is part of the technology sector and computer software & services industry. Shares are up 7.9% year to date as of the close of trading on Friday.

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

Rating Change #1

Pinnacle Financial Partners Inc ( PNFP) 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, compelling growth in net income, good cash flow from operations, expanding profit margins and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 24.7%. Since the same quarter one year prior, revenues slightly increased by 0.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 138.7% when compared to the same quarter one year prior, rising from $3.51 million to $8.37 million.
  • Net operating cash flow has increased to $42.35 million or 18.08% when compared to the same quarter last year. In addition, PINNACLE FINL PARTNERS INC has also modestly surpassed the industry average cash flow growth rate of 16.76%.
  • The gross profit margin for PINNACLE FINL PARTNERS INC is currently very high, coming in at 86.80%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, PNFP's net profit margin of 15.00% significantly trails the industry average.
  • 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. 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.

Pinnacle Financial Partners, Inc. operates as the bank holding company for Pinnacle National Bank that provides various commercial banking services to individuals, small-to medium-sized businesses, and professional entities primarily in Tennessee. The company has a P/E ratio of 13.7, below the average banking industry P/E ratio of 13.9 and below the S&P 500 P/E ratio of 17.7. Pinnacle Financial has a market cap of $596 million and is part of the financial sector and banking industry. Shares are up 6.7% year to date as of the close of trading on Monday.

You can view the full Pinnacle Financial 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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