TheStreet Ratings Top 10 Rating Changes

Tickers in this article: CCJ DB EGO ENI EXP EXPR NE NUE SPLS SYMC

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 96 U.S. common stocks for week ending May 18, 2012. 24 stocks were upgraded and 72 stocks were downgraded by our stock model.

Rating Change #10

Cameco 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, 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 and disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 11.7%. Since the same quarter one year prior, revenues rose by 22.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CCJ's debt-to-equity ratio is very low at 0.20 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 2.75, which clearly demonstrates the ability to cover short-term cash needs.
  • CAMECO CORP has improved earnings per share by 43.5% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CAMECO CORP reported lower earnings of $1.14 versus $1.30 in the prior year.
  • CCJ has underperformed the S&P 500 Index, declining 24.24% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CAMECO 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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Cameco Corporation operates as a uranium producer, supplier of conversion services, and fuel manufacturer. The company's Uranium segment is involved in the exploration for, mining, milling, purchase, and sale of uranium concentrate. The company has a P/E ratio of 17, equal to the average metals & mining industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Cameco has a market cap of $8.33 billion and is part of the basic materials sector and metals & mining industry. Shares are up 16.7% year to date as of the close of trading on Wednesday.

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

Rating Change #9

Staples Inc has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • STAPLES INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, STAPLES INC increased its bottom line by earning $1.41 versus $1.22 in the prior year. This year, the market expects an improvement in earnings ($1.50 versus $1.41).
  • Although SPLS's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.81 is somewhat weak and could be cause for future problems.
  • The gross profit margin for STAPLES INC is currently lower than what is desirable, coming in at 28.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.10% trails that of the industry average.
  • Net operating cash flow has decreased to $146.86 million or 30.15% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
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Staples, Inc., together with its subsidiaries, operates as an office products company. The company offers various office supplies and services, office machines and related products, computers and related products, and office furniture under Staples, Quill, and other proprietary brands. The company has a P/E ratio of 10.5, equal to the average specialty retail industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Staples has a market cap of $10.26 billion and is part of the services sector and specialty retail industry. Shares are up 0.1% year to date as of the close of trading on Thursday.

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

Rating Change #8

Symantec Corp has been downgraded by TheStreet Ratings from buy to hold. 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 and revenue growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • SYMANTEC 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. This trend suggests that the performance of the business is improving. During the past fiscal year, SYMANTEC CORP increased its bottom line by earning $1.57 versus $0.76 in the prior year. This year, the market expects an improvement in earnings ($1.69 versus $1.57).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 232.7% when compared to the same quarter one year prior, rising from $168.00 million to $559.00 million.
  • The gross profit margin for SYMANTEC CORP is currently very high, coming in at 88.70%. Regardless of SYMC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SYMC's net profit margin of 33.30% compares favorably to the industry average.
  • SYMC has underperformed the S&P 500 Index, declining 23.71% 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.
  • Net operating cash flow has declined marginally to $687.00 million or 0.29% 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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Symantec Corporation provides security, storage, and systems management solutions internationally. The company's Consumer segment delivers Internet security, PC tune-up, and online backup solutions and services to individual users and home offices. The company has a P/E ratio of 9.8, equal to the average computer software & services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Symantec has a market cap of $11.2 billion and is part of the technology sector and computer software & services industry. Shares are down 4% year to date as of the close of trading on Thursday.

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

Rating Change #7

Nucor Corp 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, poor profit margins and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • NUE's revenue growth has slightly outpaced the industry average of 2.0%. Since the same quarter one year prior, revenues slightly increased by 4.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 337.20% to $207.65 million when compared to the same quarter last year. In addition, NUCOR CORP has also vastly surpassed the industry average cash flow growth rate of -46.14%.
  • Despite currently having a low debt-to-equity ratio of 0.57, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that NUE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.64 is high and demonstrates strong liquidity.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, NUE has underperformed the S&P 500 Index, declining 14.53% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • The gross profit margin for NUCOR CORP is currently extremely low, coming in at 10.40%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.90% significantly trails the industry average.
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Nucor Corporation, together with its subsidiaries, engages in the manufacture and sale of steel and steel products in North America and internationally. It operates through three segments: Steel Mills, Steel Products, and Raw Materials. The company has a P/E ratio of 15.3, equal to the average metals & mining industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Nucor has a market cap of $11.7 billion and is part of the basic materials sector and metals & mining industry. Shares are down 6.8% year to date as of the close of trading on Tuesday.

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

Rating Change #6

Deutsche Bank AG has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally weak debt management, 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 against the S&P 500 and did not exceed that of the Capital Markets industry. The net income has significantly decreased by 37.0% when compared to the same quarter one year ago, falling from $2,924.54 million to $1,841.43 million.
  • The debt-to-equity ratio is very high at 5.41 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.
  • Net operating cash flow has significantly decreased to -$23,345.17 million or 158.92% when compared to the same quarter last year. Despite a decrease in cash flow of 158.92%, DEUTSCHE BANK AG is still significantly exceeding the industry average of -391.67%.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 38.34%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 36.42% 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 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 Capital Markets industry and the overall market, DEUTSCHE BANK AG's return on equity is below that of both the industry average and the S&P 500.
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Deutsche Bank Aktiengesellschaft provides investment, financial, and related products and services. The company has a P/E ratio of 6.7, below the average banking industry P/E ratio of 7.7 and below the S&P 500 P/E ratio of 17.7. Deutsche has a market cap of $34.2 billion and is part of the financial sector and banking industry. Shares are down 2.1% year to date as of the close of trading on Thursday.

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

Rating Change #5

Eagle Materials Inc 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, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures 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.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 13.7%. Since the same quarter one year prior, revenues rose by 22.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • EAGLE MATERIALS INC 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, EAGLE MATERIALS INC increased its bottom line by earning $0.43 versus $0.33 in the prior year. This year, the market expects an improvement in earnings ($1.42 versus $0.43).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction Materials industry. The net income increased by 183.3% when compared to the same quarter one year prior, rising from -$10.80 million to $9.00 million.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
  • 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 0.81 is somewhat weak and could be cause for future problems.
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Eagle Materials Inc. produces building materials and construction products used in residential, industrial, commercial, and infrastructure construction in the United States. It operates in four segments: Cement, Gypsum Wallboard, Recycled Paperboard, and Concrete and Aggregates. Eagle has a market cap of $1.57 billion and is part of the industrial goods sector and materials & construction industry. Shares are up 36.2% year to date as of the close of trading on Thursday.

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

Rating Change #4

Express Inc 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, growth in earnings per share, increase in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • EXPR's revenue growth has slightly outpaced the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 8.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • EXPRESS INC has improved earnings per share by 23.6% 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, EXPRESS INC increased its bottom line by earning $1.58 versus $1.45 in the prior year. This year, the market expects an improvement in earnings ($1.94 versus $1.58).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 24.8% when compared to the same quarter one year prior, going from $48.41 million to $60.39 million.
  • 39.60% is the gross profit margin for EXPRESS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.00% is above that of the industry average.
  • After a year of stock price fluctuations, the net result is that EXPR'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, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
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Express, Inc. operates specialty retail stores in the United States. The company's stores offer apparel and accessories for women and men between 20 and 30 years old across various aspects of the lifestyles comprising work, casual, jeanswear, and going-out occasions. It also sells gift cards. The company has a P/E ratio of 15, equal to the average retail industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Express has a market cap of $2.12 billion and is part of the services sector and retail industry. Shares are up 18.9% year to date as of the close of trading on Tuesday.

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

Rating Change #3

Eldorado Gold Corp 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, growth in earnings per share and compelling growth 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 1.9%. Since the same quarter one year prior, revenues rose by 23.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • EGO's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • ELDORADO GOLD CORP has improved earnings per share by 10.0% 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, ELDORADO GOLD CORP increased its bottom line by earning $0.59 versus $0.38 in the prior year.
  • 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 29.3% when compared to the same quarter one year prior, rising from $52.47 million to $67.85 million.
  • The gross profit margin for ELDORADO GOLD CORP is rather high; currently it is at 66.40%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.00% is above that of the industry average.
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Eldorado Gold Corporation, together with its subsidiaries, engages in the exploration, development, mining, and production of gold properties in Brazil, China, Greece, and Turkey. The company has a P/E ratio of 17.4, above the average metals & mining industry P/E ratio of 17.1 and below the S&P 500 P/E ratio of 17.7. Eldorado has a market cap of $7.31 billion and is part of the basic materials sector and metals & mining industry. Shares are down 25.2% year to date as of the close of trading on Thursday.

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

Rating Change #2

Noble Corporation 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, increase in net income, good cash flow from operations, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 14.2%. Since the same quarter one year prior, revenues rose by 37.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 120.5% when compared to the same quarter one year prior, rising from $54.50 million to $120.18 million.
  • Net operating cash flow has increased to $103.71 million or 19.51% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -7.79%.
  • Despite currently having a low debt-to-equity ratio of 0.59, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that NE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.53 is high and demonstrates strong liquidity.
  • NOBLE CORP reported significant earnings per share improvement 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, NOBLE CORP reported lower earnings of $1.45 versus $3.01 in the prior year. This year, the market expects an improvement in earnings ($2.75 versus $1.45).
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Noble Corporation operates as an offshore drilling contractor for the oil and gas industry. The company offers contract drilling services for oil and gas wells. The company has a P/E ratio of 20, below the average energy industry P/E ratio of 20.1 and above the S&P 500 P/E ratio of 17.7. Noble has a market cap of $8.68 billion and is part of the basic materials sector and energy industry. Shares are up 13.8% year to date as of the close of trading on Tuesday.

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

Rating Change #1

Enersis SA 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, revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and attractive valuation levels. 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 net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Electric Utilities industry average. The net income increased by 3.0% when compared to the same quarter one year prior, going from $199.85 million to $205.83 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 2.3%. 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 0.96, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
  • ENERSIS SA'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, ENERSIS SA reported lower earnings of $1.11 versus $1.61 in the prior year. This year, the market expects an improvement in earnings ($1.35 versus $1.11).
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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 13.1, below the average utilities industry P/E ratio of 16.5 and below the S&P 500 P/E ratio of 17.7. Enersis has a market cap of $12.76 billion and is part of the utilities sector and utilities industry. Shares are up 8.3% 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.

-- 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: CCJ DB EGO ENI EXP EXPR NE NUE SPLS SYMC