TheStreet Ratings Top 10 Rating Changes

Tickers in this article: ATML ENI GMCR IGT IR KIM MS NTT TRI UBS

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 103 U.S. common stocks for week ending February 10, 2012. 80 stocks were upgraded and 23 stocks were downgraded by our stock model.

Rating Change #10

Atmel Corporation has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue fell significantly faster than the industry average of 24.1%. Since the same quarter one year prior, revenues fell by 16.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 48.10% is the gross profit margin for ATMEL CORP which we consider to be strong. Regardless of ATML's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ATML's net profit margin of 8.60% is significantly lower than the same period one year prior.
  • 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. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, ATMEL CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • ATMEL 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, ATMEL CORP reported lower earnings of $0.67 versus $0.90 in the prior year. For the next year, the market is expecting a contraction of 10.4% in earnings ($0.60 versus $0.67).
  • 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 85.3% when compared to the same quarter one year ago, falling from $223.09 million to $32.86 million.
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Atmel Corporation designs, develops, manufactures, and markets a range of semiconductor integrated circuit (IC) products. The company has a P/E ratio of 9.4, above the average electronics industry P/E ratio of 9.2 and below the S&P 500 P/E ratio of 17.7. Atmel has a market cap of $4.53 billion and is part of the technology sector and electronics industry. Shares are up 24.7% year to date as of the close of trading on Thursday.

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

Rating Change #9

International Game Tech has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally poor debt management and weak operating cash flow.

Highlights from the ratings report include:

  • 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 Hotels, Restaurants & Leisure industry and the overall market, INTL GAME TECHNOLOGY's return on equity exceeds that of both the industry average and the S&P 500.
  • INTL GAME TECHNOLOGY's earnings per share declined by 32.0% 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, INTL GAME TECHNOLOGY increased its bottom line by earning $0.97 versus $0.74 in the prior year. This year, the market expects an improvement in earnings ($0.99 versus $0.97).
  • The share price of INTL GAME TECHNOLOGY has not done very well: it is down 11.27% 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.
  • 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 Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 33.1% when compared to the same quarter one year ago, falling from $73.70 million to $49.30 million.
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International Game Technology engages in the design, development, manufacture, and marketing of electronic gaming equipment and systems worldwide. The company has a P/E ratio of 17, above the average computer software & services industry P/E ratio of 16.9 and below the S&P 500 P/E ratio of 17.7. International Game Tech has a market cap of $4.73 billion and is part of the technology sector and computer software & services industry. Shares are down 8.4% year to date as of the close of trading on Thursday.

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

Rating Change #8

Enersis SA 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 revenue fell significantly faster than the industry average of 6.4%. Since the same quarter one year prior, revenues fell by 36.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Even though the current debt-to-equity ratio is 1.01, it is still below the industry average, suggesting that this level of debt is acceptable within the Electric Utilities industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.91 is weak.
  • ENERSIS 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. 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, ENERSIS SA reported lower earnings of $1.11 versus $1.61 in the prior year. This year, the market expects an improvement in earnings ($1.38 versus $1.11).
  • The gross profit margin for ENERSIS SA is currently lower than what is desirable, coming in at 28.40%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.20% trails that of the industry average.
  • Net operating cash flow has decreased to $1,178.91 million or 41.75% 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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Enersis S.A., an electric utility company, engages in the generation, transmission, and distribution of electricity in Chile, Argentina, Brazil, Colombia, and Peru. It owns and operates hydroelectric, thermal, and wind power plants. The company has a P/E ratio of 12.5, above the average utilities industry P/E ratio of 9.4 and below the S&P 500 P/E ratio of 17.7. Enersis has a market cap of $11.49 billion and is part of the utilities sector and utilities industry. Shares are up 4.1% year to date as of the close of trading on Tuesday.

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

Rating Change #7

Thomson Reuters Corporation has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:

  • THOMSON-REUTERS 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, THOMSON-REUTERS CORP swung to a loss, reporting -$1.70 versus $1.09 in the prior year.
  • 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 Media industry. The net income has significantly decreased by 1248.2% when compared to the same quarter one year ago, falling from $224.00 million to -$2,572.00 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 Media industry and the overall market, THOMSON-REUTERS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $942.00 million or 13.01% 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 gross profit margin for THOMSON-REUTERS CORP is currently lower than what is desirable, coming in at 29.00%. Regardless of TRI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, TRI's net profit margin of -71.90% significantly underperformed when compared to the industry average.
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Thomson Reuters Corporation provides intelligent information for businesses and professionals in the financial, legal, tax and accounting, intellectual property and science, and media markets worldwide. The company operates in two divisions, Professional and Markets. The company has a P/E ratio of 16.6, below the average computer software & services industry P/E ratio of 20.3 and below the S&P 500 P/E ratio of 17.7. Thomson Reuters has a market cap of $23.68 billion and is part of the technology sector and computer software & services industry. Shares are up 4.1% year to date as of the close of trading on Friday.

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

Rating Change #6

Nippon Telegraph And Telephone Corporation 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 attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 5.2%. 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 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.23, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for NIPPON TELEGRAPH & TELEPHONE is rather high; currently it is at 57.70%. Regardless of NTT's high profit margin, it has managed to decrease from the same period last year.
  • 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 Diversified Telecommunication Services industry and the overall market, NIPPON TELEGRAPH & TELEPHONE's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to $4,652.18 million or 6.66% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, NIPPON TELEGRAPH & TELEPHONE has marginally lower results.
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Nippon Telegraph and Telephone Corporation, together with its subsidiaries, provides telecommunications services to residential and corporate customers in Japan. The company has a P/E ratio of 12.1, above the average telecommunications industry P/E ratio of 10.6 and below the S&P 500 P/E ratio of 17.7. Nippon Telegraph and Telephone has a market cap of $63.15 billion and is part of the technology sector and telecommunications industry. Shares are down 2.3% year to date as of the close of trading on Tuesday.

You can view the full Nippon Telegraph and Telephone Ratings Report or get investment ideas from our investment research center.

Rating Change #5

Kimco Realty Corp has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. 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:

  • KIMCO REALTY 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. We feel that this trend should continue. During the past fiscal year, KIMCO REALTY CORP increased its bottom line by earning $0.26 versus $0.18 in the prior year. This year, the market expects an improvement in earnings ($0.33 versus $0.26).
  • KIM's revenue growth trails the industry average of 17.2%. Since the same quarter one year prior, revenues slightly increased by 3.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.88, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • 39.60% is the gross profit margin for KIMCO REALTY CORP which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, KIM's net profit margin of 17.40% significantly trails the industry average.
  • After a year of stock price fluctuations, the net result is that KIM's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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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Kimco Realty Corporation is a publicly owned real estate investment trust. The firm engages in acquisitions, development, and management of neighborhood and community shopping centers. The company has a P/E ratio of 84.5, below the average real estate industry P/E ratio of 92.5 and above the S&P 500 P/E ratio of 17.7. Kimco has a market cap of $7.53 billion and is part of the financial sector and real estate industry. Shares are up 16.1% year to date as of the close of trading on Thursday.

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

Rating Change #4

Green Mountain Coffee Roasters Inc. 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, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. 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:

  • GMCR's very impressive revenue growth greatly exceeded the industry average of 25.5%. Since the same quarter one year prior, revenues leaped by 101.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Although GMCR's debt-to-equity ratio of 0.24 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.03, which illustrates the ability to avoid short-term cash problems.
  • 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 Food Products industry and the overall market, GREEN MTN COFFEE ROASTERS's return on equity exceeds that of both the industry average and the S&P 500.
  • GREEN MTN COFFEE ROASTERS 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 two years. We feel that this trend should continue. During the past fiscal year, GREEN MTN COFFEE ROASTERS increased its bottom line by earning $1.30 versus $0.57 in the prior year. This year, the market expects an improvement in earnings ($2.68 versus $1.30).
  • 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 4228.9% when compared to the same quarter one year prior, rising from $2.41 million to $104.41 million.
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Green Mountain Coffee Roasters, Inc. engages in the specialty coffee and coffee maker business. The company has a P/E ratio of 33.5, below the average food & beverage industry P/E ratio of 38.6 and above the S&P 500 P/E ratio of 17.7. Green Mountain Coffee Roasters has a market cap of $7.84 billion and is part of the consumer goods sector and food & beverage industry. Shares are up 43.3% year to date as of the close of trading on Friday.

You can view the full Green Mountain Coffee Roasters Ratings Report or get investment ideas from our investment research center.

Rating Change #3

Ingersoll-Rand PLC has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • INGERSOLL-RAND PLC has improved earnings per share by 27.4% 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, INGERSOLL-RAND PLC reported lower earnings of $1.22 versus $2.24 in the prior year. This year, the market expects an improvement in earnings ($3.14 versus $1.22).
  • The revenue fell significantly faster than the industry average of 29.5%. Since the same quarter one year prior, revenues slightly dropped by 5.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Machinery industry average. The net income increased by 14.2% when compared to the same quarter one year prior, going from $212.10 million to $242.30 million.
  • The gross profit margin for INGERSOLL-RAND PLC is currently lower than what is desirable, coming in at 28.50%. Regardless of IR'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 6.90% trails the industry average.
  • IR has underperformed the S&P 500 Index, declining 22.52% from its price level of one year ago. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.
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Ingersoll-Rand Plc engages in the design, manufacture, sale, and service of a portfolio of industrial and commercial products in the United States and internationally. The company has a P/E ratio of 36.1, below the average industrial industry P/E ratio of 38.6 and above the S&P 500 P/E ratio of 17.7. Ingersoll-Rand has a market cap of $10.97 billion and is part of the industrial goods sector and industrial industry. Shares are up 24.7% year to date as of the close of trading on Thursday.

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

Rating Change #2

Morgan Stanley has been upgraded by TheStreet Ratings from sell to hold. Among the primary strengths of the company is its revenue growth. At the same time, however, we also find weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 41.5%. Since the same quarter one year prior, revenues slightly increased by 0.1%. 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.
  • MORGAN STANLEY has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, MORGAN STANLEY reported lower earnings of $1.12 versus $2.31 in the prior year. This year, the market expects an improvement in earnings ($1.85 versus $1.12).
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 33.40%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 132.55% 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 Capital Markets industry. The net income has significantly decreased by 129.9% when compared to the same quarter one year ago, falling from $836.00 million to -$250.00 million.
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Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. It operates in three segments: Institutional Securities, Global Wealth Management Group, and Asset Management. The company has a P/E ratio of 16.3, above the average financial services industry P/E ratio of 14.7 and below the S&P 500 P/E ratio of 17.7. Morgan Stanley has a market cap of $34.96 billion and is part of the financial sector and financial services industry. Shares are up 33.9% year to date as of the close of trading on Wednesday.

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

Rating Change #1

UBS AG has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally poor debt management and disappointing return on equity.

Highlights from the ratings report include:

  • 36.90% is the gross profit margin for UBS AG which we consider to be strong. Regardless of UBS'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 3.50% trails 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 Capital Markets industry. The net income has significantly decreased by 86.8% when compared to the same quarter one year ago, falling from $2,054.46 million to $271.65 million.
  • The debt-to-equity ratio is very high at 6.20 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.
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UBS AG, a financial services firm, provides wealth management, asset management, and investment banking products and services to private, corporate, and institutional clients worldwide. The company also involves in retail and commercial banking in Switzerland. The company has a P/E ratio of 13.2, above the average banking industry P/E ratio of 8.2 and below the S&P 500 P/E ratio of 17.7. UBS has a market cap of $52.08 billion and is part of the financial sector and banking industry. Shares are up 20.6% year to date as of the close of trading on Wednesday.

You can view the full UBS 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.

Tickers in this article: ATML ENI GMCR IGT IR KIM MS NTT TRI UBS