TheStreet Ratings Top 10 Rating Changes

Tickers in this article: AEM ANF ARUN CCJ CPN DVN REGN SU WOOF XRX

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 106 U.S. common stocks for week ending February 17, 2012. 83 stocks were upgraded and 23 stocks were downgraded by our stock model.

Rating Change #10

VCA Antech Inc 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 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, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 9.1%. 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.
  • Net operating cash flow has increased to $27.46 million or 11.61% when compared to the same quarter last year. In addition, VCA ANTECH INC has also vastly surpassed the industry average cash flow growth rate of -95.70%.
  • The current debt-to-equity ratio, 0.56, 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 0.78 is somewhat weak and could be cause for future problems.
  • 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. In comparison to the other companies in the Health Care Providers & Services industry and the overall market, VCA ANTECH INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for VCA ANTECH INC is rather low; currently it is at 22.90%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.90% trails that of the industry average.
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VCA Antech, Inc. operates as an animal healthcare company in the United States and Canada. The company has a P/E ratio of 16.4, above the average diversified services industry P/E ratio of 16.1 and below the S&P 500 P/E ratio of 17.7. VCA Antech has a market cap of $1.93 billion and is part of the services sector and diversified services industry. Shares are up 16.7% year to date as of the close of trading on Friday.

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

Rating Change #9

Aruba Networks Inc 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, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and premium valuation.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 34.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • ARUN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.67, which clearly demonstrates the ability to cover short-term cash needs.
  • ARUBA NETWORKS INC 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, ARUBA NETWORKS INC turned its bottom line around by earning $0.59 versus -$0.39 in the prior year. This year, the market expects an improvement in earnings ($0.64 versus $0.59).
  • 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 Communications Equipment industry. The net income has significantly decreased by 301.8% when compared to the same quarter one year ago, falling from -$2.83 million to -$11.38 million.
  • The share price of ARUBA NETWORKS INC has not done very well: it is down 7.89% 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, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
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Aruba Networks, Inc. provides next-generation network access solutions for the mobile enterprises worldwide. The company has a P/E ratio of 35.5, below the average computer hardware industry P/E ratio of 39.9 and above the S&P 500 P/E ratio of 17.7. Aruba has a market cap of $2.48 billion and is part of the technology sector and computer hardware industry. Shares are up 33.1% year to date as of the close of trading on Friday.

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

Rating Change #8

Abercrombie & Fitch Co 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, 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.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 3.7%. Since the same quarter one year prior, revenues rose by 15.6%. 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.
  • Although ANF's debt-to-equity ratio of 0.03 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 1.08, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for ABERCROMBIE & FITCH is rather high; currently it is at 56.10%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.50% trails the industry average.
  • 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 Specialty Retail industry and the overall market, ABERCROMBIE & FITCH's return on equity is below that of both the industry average and the S&P 500.
  • The share price of ABERCROMBIE & FITCH has not done very well: it is down 9.57% 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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Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel for men, women, and kids. The company has a P/E ratio of 20.1, below the average retail industry P/E ratio of 20.5 and above the S&P 500 P/E ratio of 17.7. Abercrombie & Fitch has a market cap of $3.93 billion and is part of the services sector and retail industry. Shares are down 1.1% year to date as of the close of trading on Thursday.

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

Rating Change #7

Agnico-Eagle Mines 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 and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • AGNICO EAGLE MINES 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, AGNICO EAGLE MINES LTD swung to a loss, reporting -$3.35 versus $1.99 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 Metals & Mining industry. The net income has significantly decreased by 783.7% when compared to the same quarter one year ago, falling from $87.96 million to -$601.37 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 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 52.15%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 792.15% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • AEM's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.20, which illustrates the ability to avoid short-term cash problems.
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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. The company primarily explores for gold, as well as silver, copper, zinc, and lead. The company has a P/E ratio of 48.9, below the average metals & mining industry P/E ratio of 50 and above the S&P 500 P/E ratio of 17.7. Agnico-Eagle Mines has a market cap of $5.84 billion and is part of the basic materials sector and metals & mining industry. Shares are up 0.7% year to date as of the close of trading on Friday.

You can view the full Agnico-Eagle Mines Ratings Report or get investment ideas from our investment research center.

Rating Change #6

Calpine Corp has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally weak debt management, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • The debt-to-equity ratio is very high at 2.42 and currently higher than the industry average, implying that there is very poor management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, CPN maintains a poor quick ratio of 0.92, which illustrates the inability to avoid short-term cash problems.
  • 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 Independent Power Producers & Energy Traders industry and the overall market, CALPINE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CALPINE CORP is currently lower than what is desirable, coming in at 26.50%. Regardless of CPN'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 -0.90% 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 Independent Power Producers & Energy Traders industry average, but is greater than that of the S&P 500. The net income increased by 45.8% when compared to the same quarter one year prior, rising from -$24.00 million to -$13.00 million.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 3.7%. Since the same quarter one year prior, revenues slightly dropped by 0.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
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Calpine Corporation, an independent wholesale power generation company, owns and operates natural gas-fired and geothermal power plants in North America. It operates natural gas-fired combustion turbines and renewable geothermal conventional steam turbines, as well as cogeneration power plants. Calpine has a market cap of $7.22 billion and is part of the utilities sector and utilities industry. Shares are down 5.9% year to date as of the close of trading on Thursday.

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

Rating Change #5

Regeneron Pharmaceuticals Inc has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance and largely solid financial position with reasonable debt levels by most measures. 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 disappointing return on equity.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, REGN's share price has jumped by 224.69%, exceeding the performance of the broader market during that same time frame. 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.
  • REGN, with its decline in revenue, underperformed when compared the industry average of 3.7%. Since the same quarter one year prior, revenues slightly dropped by 8.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • REGENERON PHARMACEUT 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 two years. We anticipate that this should continue in the coming year. During the past fiscal year, REGENERON PHARMACEUT reported poor results of -$2.44 versus -$1.27 in the prior year. For the next year, the market is expecting a contraction of 2.0% in earnings (-$2.49 versus -$2.44).
  • 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 Biotechnology industry. The net income has significantly decreased by 266.1% when compared to the same quarter one year ago, falling from -$14.60 million to -$53.44 million.
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Regeneron Pharmaceuticals, Inc., a biopharmaceutical company, discovers, develops, and commercializes pharmaceutical products for the treatment of serious medical conditions in the United States. Regeneron has a market cap of $7.18 billion and is part of the health care sector and drugs industry. Shares are up 106.8% year to date as of the close of trading on Tuesday.

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

Rating Change #4

Cameco Corp 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, expanding profit margins, good cash flow from operations 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:

  • The revenue growth came in higher than the industry average of 24.8%. Since the same quarter one year prior, revenues rose by 45.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CCJ's debt-to-equity ratio is very low at 0.21 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 2.54, which clearly demonstrates the ability to cover short-term cash needs.
  • 47.60% is the gross profit margin for CAMECO CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.10% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 112.29% to $254.81 million when compared to the same quarter last year. In addition, CAMECO CORP has also vastly surpassed the industry average cash flow growth rate of -16.91%.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 28.2% when compared to the same quarter one year prior, rising from $206.54 million to $264.81 million.
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Cameco Corporation operates as a uranium producer, supplier of conversion services, and fuel manufacturer. The company's Uranium segment involves in the exploration for, mining, milling, purchase, and sale of uranium concentrate. The company has a P/E ratio of 20.7, below the average metals & mining industry P/E ratio of 22.7 and above the S&P 500 P/E ratio of 17.7. Cameco has a market cap of $9.2 billion and is part of the basic materials sector and metals & mining industry. Shares are up 26.4% year to date as of the close of trading on Tuesday.

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

Rating Change #3

Xerox Corporation 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, compelling growth in net income, attractive valuation levels, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • XEROX 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 two years. We feel that this trend should continue. During the past fiscal year, XEROX CORP increased its bottom line by earning $0.89 versus $0.41 in the prior year. This year, the market expects an improvement in earnings ($1.14 versus $0.89).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Office Electronics industry. The net income increased by 119.3% when compared to the same quarter one year prior, rising from $171.00 million to $375.00 million.
  • 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 Office Electronics industry and the overall market on the basis of return on equity, XEROX CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.6%. Since the same quarter one year prior, revenues slightly dropped by 0.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
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Xerox Corporation engages in the development, manufacture, marketing, service, and finance of document equipment, software, solutions, and services worldwide. The company operates in three segments: Technology, Services, and Other. The company has a P/E ratio of 7.4, below the average consumer durables industry P/E ratio of 11.7 and below the S&P 500 P/E ratio of 17.7. Xerox has a market cap of $12.03 billion and is part of the consumer goods sector and consumer durables industry. Shares are up 5.2% year to date as of the close of trading on Wednesday.

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

Rating Change #2

Devon Energy 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, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 25.2%. Since the same quarter one year prior, revenues rose by 21.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.46, 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 1.25, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for DEVON ENERGY CORP is rather high; currently it is at 61.40%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.60% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 61.83% to $2,010.00 million when compared to the same quarter last year. In addition, DEVON ENERGY CORP has also vastly surpassed the industry average cash flow growth rate of -18.45%.
  • DEVON ENERGY CORP has improved earnings per share by 17.3% 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, DEVON ENERGY CORP reported lower earnings of $5.13 versus $5.26 in the prior year. This year, the market expects an improvement in earnings ($6.60 versus $5.13).
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Devon Energy Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and production of natural gas and oil in the United States and Canada. It also involves in transporting oil, gas, and natural gas liquids (NGL); and processing natural gas. The company has a P/E ratio of 13.6, above the average energy industry P/E ratio of 5.7 and below the S&P 500 P/E ratio of 17.7. Devon Energy has a market cap of $25.92 billion and is part of the basic materials sector and energy industry. Shares are up 15.6% year to date as of the close of trading on Thursday.

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

Rating Change #1

Suncor Energy Inc 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, 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 lackluster performance in the stock itself.

Highlights from the ratings report include:

  • SUNCOR ENERGY INC has improved earnings per share by 11.0% 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. During the past fiscal year, SUNCOR ENERGY INC increased its bottom line by earning $2.63 versus $1.71 in the prior year.
  • SU's revenue growth trails the industry average of 25.1%. Since the same quarter one year prior, revenues slightly increased by 2.6%. 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 significantly increased by 60.72% to $2,803.00 million when compared to the same quarter last year. In addition, SUNCOR ENERGY INC has also vastly surpassed the industry average cash flow growth rate of -18.42%.
  • SU's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.96 is somewhat weak and could be cause for future problems.
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Suncor Energy Inc., together with its subsidiaries, operates as an integrated energy company. The company has a P/E ratio of 12.8, below the average energy industry P/E ratio of 16.3 and below the S&P 500 P/E ratio of 17.7. Suncor Energy has a market cap of $52.98 billion and is part of the basic materials sector and energy industry. Shares are up 19.1% year to date as of the close of trading on Friday.

You can view the full Suncor Energy 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: AEM ANF ARUN CCJ CPN DVN REGN SU WOOF XRX