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 85 U.S. common stocks for week ending August 24, 2012. 30 stocks were upgraded and 55 stocks were downgraded by our stock model.

Rating Change #10

Owens-Illinois Inc ( OI) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • The debt-to-equity ratio is very high at 3.65 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, OI maintains a poor quick ratio of 0.71, 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 Containers & Packaging industry and the overall market, OWENS-ILLINOIS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $99.00 million or 44.69% 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 OWENS-ILLINOIS INC is currently lower than what is desirable, coming in at 26.60%. Regardless of OI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, OI's net profit margin of 7.50% compares favorably to the industry average.
  • OI, with its decline in revenue, underperformed when compared the industry average of 10.3%. Since the same quarter one year prior, revenues slightly dropped by 9.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

Owens-Illinois, Inc., through its subsidiaries, manufactures and sells glass container products primarily in Europe, North America, South America, and the Asia Pacific. Owens-Illinois has a market cap of $3.01 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are down 3.1% year to date as of the close of trading on Tuesday.

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

Rating Change #9

Regency Energy Partners LP ( RGP) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • REGENCY ENERGY PARTNERS LP has improved earnings per share by 42.9% 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. This trend suggests that the performance of the business is improving. During the past fiscal year, REGENCY ENERGY PARTNERS LP turned its bottom line around by earning $0.29 versus -$0.17 in the prior year. This year, the market expects an improvement in earnings ($0.56 versus $0.29).
  • 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 97.2% when compared to the same quarter one year prior, rising from $14.54 million to $28.68 million.
  • RGP, with its decline in revenue, underperformed when compared the industry average of 0.6%. Since the same quarter one year prior, revenues fell by 12.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has decreased to $46.13 million or 27.63% 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.
  • In its most recent trading session, RGP has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.

Regency Energy Partners LP engages in gathering, treating, processing, compressing, and transporting natural gas and natural gas liquids (NGLs). The company has a P/E ratio of 15.2, below the average energy industry P/E ratio of 58.2 and below the S&P 500 P/E ratio of 17.7. Regency Energy has a market cap of $3.86 billion and is part of the basic materials sector and energy industry. Shares are down 9% year to date as of the close of trading on Tuesday.

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

Rating Change #8

CPFL Energy SA ( CPL) has been downgraded by TheStreet Ratings from buy to hold. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk.

Highlights from the ratings report include:
  • CPL, with its decline in revenue, underperformed when compared the industry average of 0.8%. Since the same quarter one year prior, revenues fell by 21.6%. 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 Electric Utilities industry and the overall market, CPFL ENERGIA SA's return on equity exceeds that of both the industry average and the S&P 500.
  • CPFL ENERGIA SA' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CPFL ENERGIA SA reported lower earnings of $1.49 versus $1.92 in the prior year. For the next year, the market is expecting a contraction of 45.6% in earnings ($0.81 versus $1.49).
  • The gross profit margin for CPFL ENERGIA SA is rather low; currently it is at 18.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.10% trails that of the industry average.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, CPL has underperformed the S&P 500 Index, declining 9.75% 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.

CPFL Energia S.A., through its subsidiaries, engages in the generation, distribution, and sale of electric energy in Brazil. It generates electricity through hydroelectric, thermoelectric, sugarcane biomass, and wind power plants. The company has a P/E ratio of 18.1, above the average utilities industry P/E ratio of 12.2 and above the S&P 500 P/E ratio of 17.7. CPFL Energy has a market cap of $11.45 billion and is part of the utilities sector and utilities industry. Shares are down 18% year to date as of the close of trading on Tuesday.

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

Rating Change #7

Teck Resources Ltd Class B ( TCK) 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, attractive valuation levels and good cash flow from operations. 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 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. Along with this, the company maintains a quick ratio of 2.53, which clearly demonstrates the ability to cover short-term cash needs.
  • 38.70% is the gross profit margin for TECK RESOURCES LTD 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, TCK's net profit margin of 10.50% is significantly lower than the same period one year prior.
  • 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 Metals & Mining industry and the overall market on the basis of return on equity, TECK RESOURCES LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • 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 64.5% when compared to the same quarter one year ago, falling from $756.00 million to $268.00 million.

Teck Resources Limited operates as a diversified mining, mineral processing, and metallurgical company. It is involved in exploring, developing, smelting, refining, safety, environmental protecting, product stewardship, recycling, and researching activities. The company has a P/E ratio of 9.2, above the average metals & mining industry P/E ratio of 8.8 and below the S&P 500 P/E ratio of 17.7. Teck Resources Ltd Class B has a market cap of $16.58 billion and is part of the basic materials sector and metals & mining industry. Shares are down 15.6% year to date as of the close of trading on Tuesday.

You can view the full Teck Resources Ltd Class B Ratings Report or get investment ideas from our investment research center.

Rating Change #6

Hewlett-Packard Co ( HPQ) 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, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.

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 Computers & Peripherals industry. The net income has significantly decreased by 559.9% when compared to the same quarter one year ago, falling from $1,926.00 million to -$8,857.00 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 Computers & Peripherals industry and the overall market, HEWLETT-PACKARD CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $2,846.00 million or 11.25% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, HEWLETT-PACKARD CO has marginally lower results.
  • HPQ's debt-to-equity ratio of 0.94 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. Despite the fact that HPQ's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.63 is low and demonstrates weak liquidity.
  • The share price of HEWLETT-PACKARD CO has not done very well: it is down 21.48% 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. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

Hewlett-Packard Company and its subsidiaries provide products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. The company has a P/E ratio of 7.6, above the average computer hardware industry P/E ratio of 7.4 and below the S&P 500 P/E ratio of 17.7. Hewlett-Packard has a market cap of $38.27 billion and is part of the technology sector and computer hardware industry. Shares are down 22.6% year to date as of the close of trading on Thursday.

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

Rating Change #5

Oshkosh Corporation ( OSK) 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, revenue growth, attractive valuation levels, good cash flow from operations 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:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 56.58% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, OSK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.1%. 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.
  • Net operating cash flow has increased to $27.40 million or 23.98% when compared to the same quarter last year. In addition, OSHKOSH CORP has also vastly surpassed the industry average cash flow growth rate of -37.29%.
  • The current debt-to-equity ratio, 0.55, 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 0.96 is somewhat weak and could be cause for future problems.

Oshkosh Corporation designs, manufactures, and markets a range of specialty vehicles, and vehicle bodies worldwide. The company has a P/E ratio of 12.2, above the average automotive industry P/E ratio of 11.2 and below the S&P 500 P/E ratio of 17.7. Oshkosh has a market cap of $2.13 billion and is part of the consumer goods sector and automotive industry. Shares are up 18% year to date as of the close of trading on Tuesday.

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

Rating Change #4

Colfax Corporation ( CFX) 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, good cash flow from operations, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • CFX's very impressive revenue growth greatly exceeded the industry average of 10.0%. Since the same quarter one year prior, revenues leaped by 459.9%. 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.
  • The debt-to-equity ratio is somewhat low, currently at 0.90, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.21, which illustrates the ability to avoid short-term cash problems.
  • Compared to its closing price of one year ago, CFX's share price has jumped by 38.57%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • Net operating cash flow has significantly increased by 225.40% to $77.15 million when compared to the same quarter last year. In addition, COLFAX CORP has also vastly surpassed the industry average cash flow growth rate of -37.25%.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Machinery industry average. The net income increased by 19.0% when compared to the same quarter one year prior, going from $10.39 million to $12.37 million.

Colfax Corporation designs, manufactures, installs, maintains, and sells gas-and fluid-handling and fabrication technology products and services to commercial and governmental customers worldwide. The company offers rotary positive displacement and specialty centrifugal pumps. Colfax has a market cap of $3.01 billion and is part of the industrial goods sector and industrial industry. Shares are up 13.9% year to date as of the close of trading on Friday.

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

Rating Change #3

NVIDIA Corporation ( NVDA) 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, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • NVDA's revenue growth trails the industry average of 13.8%. Since the same quarter one year prior, revenues slightly increased by 2.7%. 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.
  • NVDA's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.64, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 144.92% to $200.89 million when compared to the same quarter last year. In addition, NVIDIA CORP has also vastly surpassed the industry average cash flow growth rate of 24.39%.
  • The gross profit margin for NVIDIA CORP is rather high; currently it is at 51.80%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.40% trails 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. 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.

NVIDIA Corporation provides graphics chips for use in smartphones, personal computers (PC), tablets, and professional workstations markets worldwide. It operates in three segments: Graphic Processing Unit (GPU), Professional Solutions Business (PSB), and Consumer Products Business (CPB). The company has a P/E ratio of 18.5, above the average electronics industry P/E ratio of 17.4 and above the S&P 500 P/E ratio of 17.7. NVIDIA has a market cap of $8.81 billion and is part of the technology sector and electronics industry. Shares are up 5.4% year to date as of the close of trading on Thursday.

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

Rating Change #2

SanDisk Corp ( SNDK) 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 and solid stock price performance. 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:
  • Although SNDK's debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average. To add to this, SNDK has a quick ratio of 1.72, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The revenue fell significantly faster than the industry average of 23.4%. Since the same quarter one year prior, revenues fell by 24.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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. 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.
  • SANDISK CORP 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, SANDISK CORP reported lower earnings of $4.04 versus $5.42 in the prior year. For the next year, the market is expecting a contraction of 57.4% in earnings ($1.72 versus $4.04).
  • 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 Computers & Peripherals industry. The net income has significantly decreased by 94.8% when compared to the same quarter one year ago, falling from $248.39 million to $12.97 million.

Sandisk Corporation designs, develops, and manufactures NAND flash memory storage solutions that are used in various consumer electronics products. The company has a P/E ratio of 16.6, above the average computer hardware industry P/E ratio of 16 and below the S&P 500 P/E ratio of 17.7. SanDisk has a market cap of $10.07 billion and is part of the technology sector and computer hardware industry. Shares are down 11.5% year to date as of the close of trading on Friday.

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

Rating Change #1

Total SA ( TOT) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.
  • TOT, with its decline in revenue, underperformed when compared the industry average of 0.8%. Since the same quarter one year prior, revenues fell by 11.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.47, 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 0.75 is weak.
  • TOTAL SA 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. 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, TOTAL SA increased its bottom line by earning $7.05 versus $6.27 in the prior year. For the next year, the market is expecting a contraction of 6.5% in earnings ($6.60 versus $7.05).

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, below the average energy industry P/E ratio of 8.1 and below the S&P 500 P/E ratio of 17.7. Total has a market cap of $111.53 billion and is part of the basic materials sector and energy industry. Shares are down 2.7% 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 Palm Beach Gardens, 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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