TheStreet Ratings Top 10 Rating Changes

Tickers in this article: AVP BK CY E HBI KEY LFL NOK RVBD WIN

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 80 U.S. common stocks for week ending April 20, 2012. 48 stocks were upgraded and 32 stocks were downgraded by our stock model.

Rating Change #10

Cypress Semiconductor Corporation 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 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 weak operating cash flow.

Highlights from the ratings report include:
  • 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 Semiconductors & Semiconductor Equipment industry and the overall market, CYPRESS SEMICONDUCTOR CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for CYPRESS SEMICONDUCTOR CORP is rather high; currently it is at 53.00%. Regardless of CY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CY's net profit margin of -6.70% significantly underperformed when compared to 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 122.3% when compared to the same quarter one year ago, falling from $55.37 million to -$12.36 million.
  • The share price of CYPRESS SEMICONDUCTOR CORP has not done very well: it is down 12.50% 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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Cypress Semiconductor Corporation designs, develops, manufactures, and markets mixed-signal and programmable solutions worldwide. The company has a P/E ratio of 15.9, below the average electronics industry P/E ratio of 16 and below the S&P 500 P/E ratio of 17.7. Cypress Semiconductor has a market cap of $2.23 billion and is part of the technology sector and electronics industry. Shares are down 15.3% year to date as of the close of trading on Friday.

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

Rating Change #9

Hanesbrands Inc has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, 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, generally poor debt management and poor profit margins.

Highlights from the ratings report include:
  • Net operating cash flow has slightly increased to -$94.12 million or 6.84% when compared to the same quarter last year. Despite an increase in cash flow, HANESBRANDS INC's cash flow growth rate is still lower than the industry average growth rate of 40.89%.
  • HBI, with its decline in revenue, underperformed when compared the industry average of 17.4%. Since the same quarter one year prior, revenues slightly dropped by 2.2%. Weakness in the company's revenue seems to have hurt the 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 Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 155.8% when compared to the same quarter one year ago, falling from $48.11 million to -$26.83 million.
  • The debt-to-equity ratio is very high at 3.25 and currently higher than the industry average, implying that there is very poor management of debt levels within the company. To add to this, HBI has a quick ratio of 0.64, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
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Hanesbrands Inc., a consumer goods company, engages in designing, manufacturing, sourcing, and selling a range of basic apparels in the United States and internationally. The company has a P/E ratio of 10.1, below the average consumer non-durables industry P/E ratio of 10.5 and below the S&P 500 P/E ratio of 17.7. Hanesbrands has a market cap of $2.75 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are up 23.2% year to date as of the close of trading on Friday.

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

Rating Change #8

Riverbed Technology Incorporated 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 expanding profit margins. 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:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 16.8%. Since the same quarter one year prior, revenues rose by 11.5%. 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.
  • RVBD 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. To add to this, RVBD has a quick ratio of 2.32, which demonstrates the ability of the company to cover short-term liquidity needs.
  • RIVERBED TECHNOLOGY INC's earnings per share declined by 50.0% 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, RIVERBED TECHNOLOGY INC increased its bottom line by earning $0.39 versus $0.22 in the prior year. This year, the market expects an improvement in earnings ($1.04 versus $0.39).
  • Net operating cash flow has decreased to $15.12 million or 39.01% 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 share price of RIVERBED TECHNOLOGY INC has not done very well: it is down 16.67% 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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Riverbed Technology, Inc. provides solutions to the fundamental problems associated with information technology performance across wide area networks (WANs) in the United States and internationally. The company has a P/E ratio of 70.6, above the average computer hardware industry P/E ratio of 69.8 and above the S&P 500 P/E ratio of 17.7. Riverbed Technology has a market cap of $4.18 billion and is part of the technology sector and computer hardware industry. Shares are up 18.6% year to date as of the close of trading on Friday.

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

Rating Change #7

Windstream Corp 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally poor debt management, disappointing return on equity and premium valuation.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 4.6%. Since the same quarter one year prior, revenues rose by 23.3%. 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.
  • 48.40% is the gross profit margin for WINDSTREAM CORP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Diversified Telecommunication Services industry average, but is less than that of the S&P 500. The net income has significantly decreased by 144.1% when compared to the same quarter one year ago, falling from $72.40 million to -$31.90 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. In comparison to the other companies in the Diversified Telecommunication Services industry and the overall market, WINDSTREAM CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
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Windstream Corporation provides communications and technology solutions in the United States. The company offers business services, as well as provides broadband, voice, and video services to consumers primarily in rural markets. The company has a P/E ratio of 33.9, below the average telecommunications industry P/E ratio of 34.5 and above the S&P 500 P/E ratio of 17.7. Windstream has a market cap of $6.7 billion and is part of the technology sector and telecommunications industry. Shares are down 4.4% year to date as of the close of trading on Tuesday.

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

Rating Change #6

Nokia Oyj has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Communications Equipment industry. The net income has significantly decreased by 353.9% when compared to the same quarter one year ago, falling from $487.90 million to -$1,238.73 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 Communications Equipment industry and the overall market, NOKIA CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for NOKIA CORP is currently lower than what is desirable, coming in at 33.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -12.60% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$786.71 million or 220.62% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 54.09%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 353.84% 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.
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Nokia Corporation provides telecommunications infrastructure hardware, software, and services worldwide. The company offers smart phones and smart devices; and feature phones, and related services and applications. Nokia Oyj has a market cap of $19.25 billion and is part of the technology sector and telecommunications industry. Shares are down 20.7% year to date as of the close of trading on Friday.

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

Rating Change #5

KeyCorp has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. 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 gross profit margin for KEYCORP is currently very high, coming in at 85.00%. Regardless of KEY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, KEY's net profit margin of 17.30% compares favorably to the industry average.
  • KEYCORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, KEYCORP increased its bottom line by earning $0.92 versus $0.47 in the prior year. For the next year, the market is expecting a contraction of 16.3% in earnings ($0.77 versus $0.92).
  • KEY, with its decline in revenue, slightly underperformed the industry average of 3.0%. Since the same quarter one year prior, revenues slightly dropped by 5.0%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • 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. When compared to other companies in the Commercial Banks industry and the overall market, KEYCORP's return on equity is below that of both the industry average and the S&P 500.
  • The change in net income from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income has decreased by 23.9% when compared to the same quarter one year ago, dropping from $263.00 million to $200.00 million.
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KeyCorp operates as a holding company for KeyBank National Association that provides various banking services in the United States. The company has a P/E ratio of 8.7, below the average banking industry P/E ratio of 9.4 and below the S&P 500 P/E ratio of 17.7. KeyCorp has a market cap of $7.77 billion and is part of the financial sector and banking industry. Shares are up 2.9% year to date as of the close of trading on Friday.

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

Rating Change #4

Avon Products Inc has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Net operating cash flow has increased to $421.60 million or 15.82% when compared to the same quarter last year. Despite an increase in cash flow, AVON PRODUCTS's average is still marginally south of the industry average growth rate of 16.49%.
  • The gross profit margin for AVON PRODUCTS is rather high; currently it is at 63.40%. Regardless of AVP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AVP's net profit margin of 0.00% significantly underperformed when compared to the industry average.
  • AVON PRODUCTS 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 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, AVON PRODUCTS reported lower earnings of $1.20 versus $1.36 in the prior year. This year, the market expects an improvement in earnings ($1.49 versus $1.20).
  • AVP, with its decline in revenue, slightly underperformed the industry average of 1.0%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
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Avon Products, Inc. manufactures and markets beauty and related products worldwide. The company has a P/E ratio of 19.6, above the average consumer non-durables industry P/E ratio of 19.2 and above the S&P 500 P/E ratio of 17.7. Avon has a market cap of $9.16 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are up 31.8% year to date as of the close of trading on Tuesday.

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

Rating Change #3

Lan Airlines SA 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, expanding profit margins, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.1%. Since the same quarter one year prior, revenues rose by 19.3%. 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.
  • 36.60% is the gross profit margin for LAN AIRLINES SA which we consider to be strong. Regardless of LFL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LFL's net profit margin of 7.20% compares favorably to the industry average.
  • LAN AIRLINES SA's earnings per share declined by 31.3% 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 year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, LAN AIRLINES SA reported lower earnings of $0.95 versus $1.23 in the prior year. This year, the market expects an improvement in earnings ($1.30 versus $0.95).
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
  • 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 Airlines industry and the overall market, LAN AIRLINES SA's return on equity exceeds that of both the industry average and the S&P 500.
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Lan Airlines S.A., together with its subsidiaries, provides passenger and cargo air transportation services. The company offers air cargo transportation services to other international air carriers, freight-forwarding companies, export oriented companies, and individual consumers. The company has a P/E ratio of 30.4, equal to the average transportation industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Lan Airlines has a market cap of $9.73 billion and is part of the services sector and transportation industry. Shares are up 20.7% year to date as of the close of trading on Tuesday.

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

Rating Change #2

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

Highlights from the ratings report include:
  • The debt-to-equity ratio is somewhat low, currently at 0.93, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • The gross profit margin for BANK OF NEW YORK MELLON CORP is currently very high, coming in at 96.00%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.30% is above that of the industry average.
  • Despite the weak revenue results, BK has outperformed against the industry average of 21.0%. Since the same quarter one year prior, revenues slightly dropped by 0.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • BANK OF NEW YORK MELLON CORP's earnings per share improvement from the most recent quarter was slightly positive. 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 ($2.25 versus $2.04).
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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 11.7, above the average financial services industry P/E ratio of 11.5 and below the S&P 500 P/E ratio of 17.7. Bank of New York Mellon has a market cap of $28.03 billion and is part of the financial sector and financial services industry. Shares are up 15.9% 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 #1

Eni SpA 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, increase in net income, revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • ENI SPA 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, ENI SPA increased its bottom line by earning $4.91 versus $4.62 in the prior year. This year, the market expects an improvement in earnings ($5.72 versus $4.91).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 162.7% when compared to the same quarter one year prior, rising from $535.58 million to $1,407.04 million.
  • E's revenue growth trails the industry average of 25.5%. Since the same quarter one year prior, revenues slightly increased by 1.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.53, 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 0.76 is somewhat weak and could be cause for future problems.
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Eni SpA, an integrated energy company, engages in the exploration, production, transportation, transformation, and marketing of oil and natural gas. The company has a P/E ratio of 4.5, below the average energy industry P/E ratio of nine and below the S&P 500 P/E ratio of 17.7. Eni SpA has a market cap of $89.18 billion and is part of the basic materials sector and energy industry. Shares are up 5.5% year to date as of the close of trading on Thursday.

You can view the full Eni SpA 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: AVP BK CY E HBI KEY LFL NOK RVBD WIN