TheStreet Ratings Top 10 Rating Changes

NEW YORK ( TheStreet Ratings) -- Every trading day TheStreet Ratings' stock model reviews the investment ratings on around 4,300 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 23 U.S. common stocks for week ending April 12, 2013. 9 stocks were upgraded and 14 stocks were downgraded by our stock model.

Rating Change #10

Atlas Air Worldwide Holdings Inc ( AAWW) 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, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

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Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.6%. Since the same quarter one year prior, revenues rose by 16.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Even though the current debt-to-equity ratio is 1.02, it is still below the industry average, suggesting that this level of debt is acceptable within the Air Freight & Logistics industry. Despite the fact that AAWW's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.67 is high and demonstrates strong liquidity.
  • AAWW has underperformed the S&P 500 Index, declining 18.54% from its price level of one year ago. 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.
  • The gross profit margin for ATLAS AIR WORLDWIDE HLDG INC is currently lower than what is desirable, coming in at 28.90%. Regardless of AAWW's low profit margin, it has managed to increase from the same period last year.
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Atlas Air Worldwide Holdings, Inc., through its subsidiaries, provides outsourced aircraft and aviation operating services in the United States and internationally. It operates in four segments: ACMI, AMC Charter, Commercial Charter, and Dry Leasing. The company has a P/E ratio of 8.1, below the S&P 500 P/E ratio of 17.7. Atlas Air Worldwide has a market cap of $1.04 billion and is part of the services sector and transportation industry. Shares are down 11.4% year to date as of the close of trading on Wednesday.

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

Rating Change #9

Delhaize Group SA ( DEG) 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, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

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Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 23.6%. 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 significantly increased by 103.07% to $799.83 million when compared to the same quarter last year. In addition, DELHAIZE GROUP - ETS DLHZ FR has also vastly surpassed the industry average cash flow growth rate of -13.19%.
  • The gross profit margin for DELHAIZE GROUP - ETS DLHZ FR is currently lower than what is desirable, coming in at 27.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.59% trails that of the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Food & Staples Retailing industry. The net income has significantly decreased by 292.3% when compared to the same quarter one year ago, falling from $110.54 million to -$212.52 million.
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Etablissements Delhaize Freres et Cie 'Le Lion' (Groupe Delhaize) Societe Anonyme, together with its subsidiaries, operates food supermarkets. It also operates other store formats, such as convenience and proximity stores, specialty stores, and discount supermarkets. The company has a P/E ratio of 8.8, below the S&P 500 P/E ratio of 17.7. Delhaize Group has a market cap of $5.39 billion and is part of the services sector and retail industry. Shares are up 35.7% year to date as of the close of trading on Thursday.

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

Rating Change #8

Franco-Nevada Corp ( FNV) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and relatively poor performance when compared with the S&P 500 during the past year.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • The gross profit margin for FRANCO-NEVADA CORP is rather low; currently it is at 22.30%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, FNV's net profit margin of -29.00% significantly underperformed when compared to the industry average.
  • In its most recent trading session, FNV 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. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.2%. Since the same quarter one year prior, revenues slightly dropped by 3.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • When compared to other companies in the Metals & Mining industry and the overall market, FRANCO-NEVADA CORP's return on equity is below that of both the industry average and the S&P 500.
  • FRANCO-NEVADA CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, FRANCO-NEVADA CORP turned its bottom line around by earning $0.70 versus -$0.46 in the prior year.
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Franco-Nevada Corporation operates as a gold-focused royalty and stream company in the United States, Canada, Mexico, Australia, and Africa. The company has interests in platinum group metal, oil and gas, and other resource properties. The company has a P/E ratio of 61.3, above the S&P 500 P/E ratio of 17.7. Franco-Nevada has a market cap of $6.38 billion and is part of the basic materials sector and metals & mining industry. Shares are down 27.1% year to date as of the close of trading on Thursday.

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

Rating Change #7

Richardson Electronics ( RELL) 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, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and relatively poor performance when compared with the S&P 500 during the past year.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • RELL 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 7.74, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 135.91% to $2.00 million when compared to the same quarter last year. In addition, RICHARDSON ELECTRONICS LTD has also vastly surpassed the industry average cash flow growth rate of 12.99%.
  • RELL, with its decline in revenue, slightly underperformed the industry average of 7.2%. Since the same quarter one year prior, revenues fell by 12.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 69.8% when compared to the same quarter one year ago, falling from $1.34 million to $0.40 million.
  • The gross profit margin for RICHARDSON ELECTRONICS LTD is currently lower than what is desirable, coming in at 30.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.20% trails that of the industry average.
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Richardson Electronics, Ltd. provides engineered solutions, power grid microwave tubes and related components, and customized display solutions. The company has a P/E ratio of 29.3, above the S&P 500 P/E ratio of 17.7. Richardson has a market cap of $144.1 million and is part of the services sector and wholesale industry. Shares are up 3.5% year to date as of the close of trading on Thursday.

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

Rating Change #6

Coca-Cola Bottling Company ( COKE) 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, 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, generally higher debt management risk and weak operating cash flow.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • COKE's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 3.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • 43.90% is the gross profit margin for COCA-COLA BTLNG CONS which we consider to be strong. Regardless of COKE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, COKE's net profit margin of 0.47% is significantly lower than the industry average.
  • Net operating cash flow has significantly decreased to $17.81 million or 50.61% 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 debt-to-equity ratio is very high at 3.64 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, COKE has a quick ratio of 0.66, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
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Coca-Cola Bottling Co. Consolidated, together with its subsidiaries, engages in the production, marketing, and distribution of nonalcoholic beverages, primarily products of The Coca-Cola Company. The company has a P/E ratio of 20.5, above the S&P 500 P/E ratio of 17.7. Coca-Cola has a market cap of $431.2 million and is part of the consumer goods sector and food & beverage industry. Shares are down 9.2% year to date as of the close of trading on Monday.

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

Rating Change #5

Greenlight Capital Re Ltd ( GLRE) 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, reasonable valuation levels, good cash flow from operations, notable return on equity 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.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • GLRE 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.
  • Net operating cash flow has increased to -$15.90 million or 16.94% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 6.58%.
  • GREENLIGHT CAPITAL RE 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. 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, GREENLIGHT CAPITAL RE LTD increased its bottom line by earning $0.35 versus $0.14 in the prior year. This year, the market expects an improvement in earnings ($4.40 versus $0.35).
  • GLRE, with its very weak revenue results, has greatly underperformed against the industry average of 17.7%. Since the same quarter one year prior, revenues plummeted by 57.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
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Greenlight Capital Re, Ltd., through its subsidiaries, operates in the property and casualty reinsurance business in the United States, Europe, the Caribbean, and internationally. The company has a P/E ratio of 64.1, above the S&P 500 P/E ratio of 17.7. Greenlight Capital Re has a market cap of $761.1 million and is part of the financial sector and insurance industry. Shares are up 8.8% year to date as of the close of trading on Thursday.

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

Rating Change #4

Bellatrix Exploration Ltd ( BXE) 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, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • BXE's very impressive revenue growth greatly exceeded the industry average of 1.1%. Since the same quarter one year prior, revenues leaped by 64.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 161.53% and other important driving factors, this stock has surged by 48.37% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although BXE had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • BELLATRIX EXPLORATION LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, BELLATRIX EXPLORATION LTD turned its bottom line around by earning $0.24 versus -$0.13 in the prior year.
  • In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, BELLATRIX EXPLORATION LTD's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Despite currently having a low debt-to-equity ratio of 0.52, 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 0.76 is weak.
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Bellatrix Exploration Ltd. engages in the acquisition, exploration, development, and production of oil and natural gas properties in Canada. It holds interests in properties located in Alberta, British Columbia, and Saskatchewan. The company has a P/E ratio of 107.2, above the S&P 500 P/E ratio of 17.7. Bellatrix has a market cap of $710.9 million and is part of the basic materials sector and energy industry. Shares are up 54% year to date as of the close of trading on Friday.

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

Rating Change #3

Pall Corporation ( PLL) 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, growth in earnings per share, solid stock price performance and notable return on equity. 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.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 12.6%. Since the same quarter one year prior, revenues slightly increased by 3.5%. 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, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, PLL has a quick ratio of 1.81, which demonstrates the ability of the company to cover short-term liquidity needs.
  • PALL CORP has improved earnings per share by 11.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PALL CORP increased its bottom line by earning $2.38 versus $2.36 in the prior year. This year, the market expects an improvement in earnings ($3.08 versus $2.38).
  • 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 Machinery industry and the overall market on the basis of return on equity, PALL CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • 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. 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.
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Pall Corporation engages in manufacturing and marketing filtration, purification, and separation products and integrated systems solutions worldwide. The company has a P/E ratio of 24.7, above the S&P 500 P/E ratio of 17.7. Pall has a market cap of $7.49 billion and is part of the industrial goods sector and industrial industry. Shares are up 12.7% year to date as of the close of trading on Friday.

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

Rating Change #2

Alcoa Inc ( AA) 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, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 Metals & Mining industry. The net income increased by 58.5% when compared to the same quarter one year prior, rising from $94.00 million to $149.00 million.
  • Net operating cash flow has significantly increased by 70.33% to -$70.00 million when compared to the same quarter last year. In addition, ALCOA INC has also vastly surpassed the industry average cash flow growth rate of -49.35%.
  • ALCOA INC has improved earnings per share by 44.4% 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, ALCOA INC reported lower earnings of $0.17 versus $0.52 in the prior year. This year, the market expects an improvement in earnings ($0.46 versus $0.17).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.3%. Since the same quarter one year prior, revenues slightly dropped by 2.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for ALCOA INC is rather low; currently it is at 16.90%. Regardless of AA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AA's net profit margin of 2.55% compares favorably to the industry average.
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Alcoa Inc. engages in the production and management of primary aluminum, fabricated aluminum, and alumina. The company operates in four segments: Alumina, Primary Metals, Global Rolled Products, and Engineered Products and Solutions. The company has a P/E ratio of 43.8, above the S&P 500 P/E ratio of 17.7. Alcoa has a market cap of $8.9 billion and is part of the basic materials sector and metals & mining industry. Shares are down 5.3% year to date as of the close of trading on Monday.

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

Rating Change #1

Tree.com Inc ( TREE) 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, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • TREE's very impressive revenue growth greatly exceeded the industry average of 0.9%. Since the same quarter one year prior, revenues leaped by 124.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 145.65% and other important driving factors, this stock has surged by 149.07% 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.
  • The gross profit margin for TREE.COM INC is currently very high, coming in at 93.90%. Regardless of TREE'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 9.68% trails the industry average.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Thrifts & Mortgage Finance industry average, but is greater than that of the S&P 500. The net income increased by 96.2% when compared to the same quarter one year prior, rising from $1.18 million to $2.32 million.
  • 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 Thrifts & Mortgage Finance industry and the overall market on the basis of return on equity, TREE.COM INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
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Tree.Com, Inc., through its subsidiaries, owns various brands and businesses that provide information, tools, advice, products, and services for critical transactions in consumers' lives. Tree.com has a market cap of $220.9 million and is part of the financial sector and real estate industry. Shares are up 5.3% year to date as of the close of trading on Monday.

You can view the full Tree.com 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.
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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