TheStreet Ratings Top 10 Rating Changes

NEW YORK ( TheStreet Ratings) -- Every trading day TheStreet Ratings' stock model reviews the investment ratings on around 4,600 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 88 U.S. common stocks for week ending October 26, 2012. 38 stocks were upgraded and 50 stocks were downgraded by our stock model.

Rating Change #10

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 largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels 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, disappointing return on equity and deteriorating net income.

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Highlights from the ratings report include:
  • 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 1.96, 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 58.20%. 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 24.10% compares favorably to the industry average.
  • The share price of GOLDCORP INC has not done very well: it is down 11.20% 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.
  • 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 26.4, below the average metals & mining industry P/E ratio of 27.3 and above the S&P 500 P/E ratio of 17.7. Goldcorp has a market cap of $34.51 billion and is part of the basic materials sector and metals & mining industry. Shares are down 3.8% year to date as of the close of trading on Thursday.

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

Rating Change #9

Hess Corp ( HES) has been downgraded by TheStreet Ratings from buy to hold. The company's strongest point has been its expanding profit margins. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

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Highlights from the ratings report include:
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.4%. Since the same quarter one year prior, revenues slightly dropped by 5.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • HESS CORP's earnings per share declined by 9.6% 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 year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, HESS CORP reported lower earnings of $5.01 versus $6.50 in the prior year. This year, the market expects an improvement in earnings ($5.90 versus $5.01).
  • The gross profit margin for HESS CORP is currently lower than what is desirable, coming in at 28.10%. Regardless of HES's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.90% trails the industry average.
  • 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 9.6% when compared to the same quarter one year ago, dropping from $607.00 million to $549.00 million.
  • Net operating cash flow has decreased to $1,240.00 million or 26.58% 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.
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Hess Corporation, together with its subsidiaries, operates as an integrated energy company. The company operates in two segments, Exploration and Production (E&P) and Marketing and Refining (M&R). The company has a P/E ratio of 14.2, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Hess has a market cap of $17.94 billion and is part of the basic materials sector and energy industry. Shares are down 5.1% year to date as of the close of trading on Friday.

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

Rating Change #8

Range Resources Corporation ( RRC) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and disappointing return on equity.

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Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 77.85% to $178.18 million when compared to the same quarter last year. In addition, RANGE RESOURCES CORP has also vastly surpassed the industry average cash flow growth rate of -9.04%.
  • The gross profit margin for RANGE RESOURCES CORP is rather high; currently it is at 69.20%. Regardless of RRC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RRC's net profit margin of -18.20% significantly underperformed when compared to the industry average.
  • The debt-to-equity ratio of 1.25 is relatively high when compared with the industry average, suggesting a need for better debt level management.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market, RANGE RESOURCES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
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Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), and oil company. It engages in the acquisition, exploration, and development of natural gas and oil properties primarily in the Appalachian and southwestern regions of the United States. The company has a P/E ratio of 251.1, equal to the average energy industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Range has a market cap of $11.02 billion and is part of the basic materials sector and energy industry. Shares are up 9.5% year to date as of the close of trading on Thursday.

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

Rating Change #7

NetApp Inc ( NTAP) 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 expanding profit margins. 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.

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Highlights from the ratings report include:
  • Although NTAP's debt-to-equity ratio of 0.28 is very low, it is currently higher than that of the industry average. To add to this, NTAP has a quick ratio of 1.74, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for NETAPP INC is rather high; currently it is at 64.60%. Regardless of NTAP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NTAP's net profit margin of 4.40% is significantly lower than the same period one year prior.
  • 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 54.3% when compared to the same quarter one year ago, falling from $139.50 million to $63.80 million.
  • The share price of NETAPP INC has not done very well: it is down 24.51% 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.
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NetApp, Inc. engages in design, manufacture, marketing, and technical support of networked storage solutions. The company supply enterprise storage and data management software, and hardware products and services. The company has a P/E ratio of 21.2, equal to the average computer hardware industry P/E ratio and above the S&P 500 P/E ratio of 17.7. NetApp has a market cap of $10.86 billion and is part of the technology sector and computer hardware industry. Shares are down 17.6% year to date as of the close of trading on Wednesday.

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

Rating Change #6

Tim Holding Company ( TSU) 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, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

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Highlights from the ratings report include:
  • TSU'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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.11, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for TIM PARTICIPACOES SA is rather high; currently it is at 56.60%. Regardless of TSU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.80% trails the industry average.
  • TIM PARTICIPACOES 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, TIM PARTICIPACOES SA reported lower earnings of $2.02 versus $4.85 in the prior year. For the next year, the market is expecting a contraction of 23.9% in earnings ($1.54 versus $2.02).
  • 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 Wireless Telecommunication Services industry. The net income has significantly decreased by 31.2% when compared to the same quarter one year ago, falling from $230.23 million to $158.37 million.
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TIM Participacoes S.A., through its subsidiaries, provides mobile telecommunications services using digital technologies to business and individual customers in Brazil. The company offers mobile, fixed and long distance telephony, data transmission and Internet services. The company has a P/E ratio of 11.4, above the average telecommunications industry P/E ratio of 5.7 and below the S&P 500 P/E ratio of 17.7. Tim Holding has a market cap of $8.3 billion and is part of the technology sector and telecommunications industry. Shares are down 33.4% year to date as of the close of trading on Friday.

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

Rating Change #5

Bank Of New York Mellon Corp ( BK) 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, attractive valuation levels, expanding profit margins, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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Highlights from the ratings report include:
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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 gross profit margin for BANK OF NEW YORK MELLON CORP is currently very high, coming in at 96.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.10% is above that of the industry average.
  • BANK OF NEW YORK MELLON CORP has improved earnings per share by 15.1% 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, BANK OF NEW YORK MELLON CORP reported lower earnings of $2.04 versus $2.10 in the prior year. This year, the market expects an improvement in earnings ($2.07 versus $2.04).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.9%. Since the same quarter one year prior, revenues slightly dropped by 1.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
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The Bank of New York Mellon Corporation, a financial services company, provides various products and services worldwide. The company offers a range of equity, fixed income, cash, and alternative/overlay products, as well as distributes investment management products. The company has a P/E ratio of 12.7, equal to the average financial services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Bank of New York Mellon has a market cap of $28.91 billion and is part of the financial sector and financial services industry. Shares are up 22.9% year to date as of the close of trading on Thursday.

You can view the full Bank of New York Mellon Ratings Report or get investment ideas from our investment research center.

Rating Change #4

Koninklijke Philips Electronics NV ( PHG) 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, good cash flow from operations, expanding profit margins, 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.

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Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 9.6%. Since the same quarter one year prior, revenues rose by 31.9%. 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.
  • Net operating cash flow has significantly increased by 1464.01% to $768.35 million when compared to the same quarter last year. In addition, PHILIPS ELECTRONICS (KON) NV has also vastly surpassed the industry average cash flow growth rate of -58.71%.
  • 44.10% is the gross profit margin for PHILIPS ELECTRONICS (KON) NV which we consider to be strong. 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 2.80% trails the industry average.
  • 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. 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.
  • PHILIPS ELECTRONICS (KON) NV's earnings per share declined by 20.0% 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 two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, PHILIPS ELECTRONICS (KON) NV swung to a loss, reporting -$1.05 versus $2.06 in the prior year. This year, the market expects an improvement in earnings ($1.27 versus -$1.05).
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Koninklijke Philips Electronics N.V. engages in the healthcare, consumer lifestyle, and lighting product businesses worldwide. The company offers screening, diagnosis, treatment, monitoring, and health management services in cardio-pulmonary, oncology, and women's health areas. Koninklijke Philips has a market cap of $22.91 billion and is part of the consumer goods sector and consumer durables industry. Shares are up 17.4% year to date as of the close of trading on Tuesday.

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

Rating Change #3

Seadrill Ltd ( SDRL) 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, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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Highlights from the ratings report include:
  • SDRL's revenue growth trails the industry average of 27.1%. Since the same quarter one year prior, revenues rose by 12.8%. 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 90.51% to $482.00 million when compared to the same quarter last year. In addition, SEADRILL LTD has also vastly surpassed the industry average cash flow growth rate of -80.92%.
  • The gross profit margin for SEADRILL LTD is rather high; currently it is at 61.00%. Regardless of SDRL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SDRL's net profit margin of 46.80% significantly outperformed against the industry.
  • SEADRILL LTD's earnings per share declined by 15.5% 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, SEADRILL LTD increased its bottom line by earning $2.92 versus $2.56 in the prior year. This year, the market expects an improvement in earnings ($3.06 versus $2.92).
  • 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, despite 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.
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Seadrill Limited provides offshore drilling services to the oil and gas industry worldwide. Its services include drilling, completion, and maintenance of offshore wells; production drilling and well maintenance; and well services. The company has a P/E ratio of 14, below the average energy industry P/E ratio of 23.3 and below the S&P 500 P/E ratio of 17.7. Seadrill has a market cap of $19.4 billion and is part of the basic materials sector and energy industry. Shares are up 23.4% year to date as of the close of trading on Tuesday.

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

Rating Change #2

Bunge Ltd ( BG) 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, attractive valuation levels, 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.

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Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 6.9%. Since the same quarter one year prior, revenues rose by 10.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • 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. 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 net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 112.1% when compared to the same quarter one year prior, rising from $140.00 million to $297.00 million.
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Bunge Limited, through its subsidiaries, engages in the agriculture and food businesses worldwide. The company has a P/E ratio of 13.8, below the average food & beverage industry P/E ratio of 14 and below the S&P 500 P/E ratio of 17.7. Bunge has a market cap of $9.97 billion and is part of the consumer goods sector and food & beverage industry. Shares are up 19.4% year to date as of the close of trading on Friday.

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

Rating Change #1

Agnico-Eagle Mines ( AEM) 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, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 18.3%. Since the same quarter one year prior, revenues slightly increased by 2.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AEM's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AEM has a quick ratio of 1.66, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has remained constant at $199.46 million with no significant change when compared to the same quarter last year. Along with maintaining stable cash flow from operations, the firm exceeded the industry average cash flow growth rate of -29.71%.
  • AGNICO EAGLE MINES LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, AGNICO EAGLE MINES LTD swung to a loss, reporting -$3.35 versus $1.99 in the prior year.
  • 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 Metals & Mining industry and the overall market, AGNICO EAGLE MINES LTD's return on equity significantly trails that of both the industry average and the S&P 500.
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Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. It primarily explores for gold, as well as silver, copper, zinc, and lead. Agnico-Eagle Mines has a market cap of $9.03 billion and is part of the basic materials sector and metals & mining industry. Shares are up 42.2% year to date as of the close of trading on Thursday.

You can view the full Agnico-Eagle Mines 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.

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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