TheStreet Ratings Top 10 Rating Changes

Tickers in this article: CFN JCP LXK MOS NE NTRS SDRL SVM URBN VC

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 63 U.S. common stocks for week ending July 20, 2012. 37 stocks were upgraded and 26 stocks were downgraded by our stock model.

Rating Change #10

Silvercorp Metals 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, 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 a generally disappointing performance in the stock itself, weak operating cash flow and unimpressive growth in net income.

Highlights from the ratings report include:

  • SVM's revenue growth has slightly outpaced the industry average of 1.6%. Since the same quarter one year prior, revenues slightly increased by 4.5%. 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.
  • SVM 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 4.18, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for SILVERCORP METALS INC is currently very high, coming in at 72.10%. Regardless of SVM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SVM's net profit margin of 21.90% compares favorably to the industry average.
  • Looking at the price performance of SVM's shares over the past 12 months, there is not much good news to report: the stock is down 55.37%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, SVM is still more expensive than most of the other companies in its industry.
  • Net operating cash flow has significantly decreased to $12.60 million or 63.29% 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.

Silvercorp Metals Inc. engages in the acquisition, exploration, development, and operation of silver mineral properties in China and Canada. The company has a P/E ratio of 11.9, equal to the average metals & mining industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Silvercorp has a market cap of $874 million and is part of the basic materials sector and metals & mining industry. Shares are down 20% year to date as of the close of trading on Wednesday.

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

Rating Change #9

Lexmark International 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, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • 45.60% is the gross profit margin for LEXMARK INTL INC 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, LXK's net profit margin of 6.10% significantly trails the industry average.
  • Net operating cash flow has slightly increased to $92.10 million or 8.09% when compared to the same quarter last year. Despite an increase in cash flow of 8.09%, LEXMARK INTL INC is still growing at a significantly lower rate than the industry average of 126.05%.
  • Looking at the price performance of LXK's shares over the past 12 months, there is not much good news to report: the stock is down 30.44%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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 Computers & Peripherals industry. The net income has significantly decreased by 27.0% when compared to the same quarter one year ago, falling from $83.30 million to $60.80 million.

Lexmark International, Inc. develops, manufactures, and supplies printing and imaging solutions for offices. It offers laser printers, inkjet printers, and multifunction devices, as well as cartridges and other supplies, services, and solutions. The company has a P/E ratio of 5.2, equal to the average computer hardware industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Lexmark International has a market cap of $1.45 billion and is part of the technology sector and computer hardware industry. Shares are down 38.9% year to date as of the close of trading on Tuesday.

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

Rating Change #8

Visteon 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 disappointing historical performance in the stock itself, deteriorating net income, disappointing return on equity, poor profit margins and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 53.25%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 192.53% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • 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 Auto Components industry. The net income has significantly decreased by 174.3% when compared to the same quarter one year ago, falling from $39.00 million to -$29.00 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 Auto Components industry and the overall market, VISTEON CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for VISTEON CORP is currently extremely low, coming in at 11.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.70% trails that of the industry average.
  • VISTEON 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 year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, VISTEON CORP reported lower earnings of $1.45 versus $21.09 in the prior year. This year, the market expects an improvement in earnings ($3.00 versus $1.45).

Visteon Corporation designs, manufactures, and supplies automotive systems, modules, and components to automotive original equipment manufacturers worldwide. The company has a P/E ratio of 129.6, below the average automotive industry P/E ratio of 140.9 and above the S&P 500 P/E ratio of 17.7. Visteon has a market cap of $1.7 billion and is part of the consumer goods sector and automotive industry. Shares are down 36.4% year to date as of the close of trading on Wednesday.

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

Rating Change #7

J.C. Penney Co Inc 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, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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 Multiline Retail industry. The net income has significantly decreased by 354.7% when compared to the same quarter one year ago, falling from $64.00 million to -$163.00 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 Multiline Retail industry and the overall market, PENNEY (J C) CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$577.00 million or 1209.61% 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 37.98%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 367.85% 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.
  • PENNEY (J C) CO 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, PENNEY (J C) CO swung to a loss, reporting -$0.73 versus $1.59 in the prior year. This year, the market expects an improvement in earnings ($1.35 versus -$0.73).

J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department stores in the United States and Puerto Rico. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. J.C. Penney has a market cap of $4.38 billion and is part of the services sector and retail industry. Shares are down 44.3% year to date as of the close of trading on Tuesday.

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

Rating Change #6

CareFusion 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, 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 unimpressive growth in net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 5.2%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although CFN's debt-to-equity ratio of 0.27 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 2.77, which clearly demonstrates the ability to cover short-term cash needs.
  • 50.00% is the gross profit margin for CAREFUSION CORP which we consider to be strong. Regardless of CFN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CFN's net profit margin of 3.40% is significantly lower than the same period one year prior.
  • CFN has underperformed the S&P 500 Index, declining 8.88% from its price level of one year ago. 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.
  • 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 31.1% when compared to the same quarter one year ago, falling from $45.00 million to $31.00 million.

CareFusion Corporation, a medical technology company, provides various healthcare products and services in the United States and internationally. It operates in two segments, Critical Care Technologies, and Medical Technologies and Services. The company has a P/E ratio of 13.1, below the average health services industry P/E ratio of 20.8 and below the S&P 500 P/E ratio of 17.7. CareFusion has a market cap of $5.63 billion and is part of the health care sector and health services industry. Shares are down 1% year to date as of the close of trading on Tuesday.

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

Rating Change #5

Urban Outfitters 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, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • URBN's revenue growth has slightly outpaced the industry average of 8.2%. Since the same quarter one year prior, revenues slightly increased by 8.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.14 is sturdy.
  • Net operating cash flow has significantly increased by 109.92% to $42.07 million when compared to the same quarter last year. In addition, URBAN OUTFITTERS INC has also vastly surpassed the industry average cash flow growth rate of 1.58%.
  • 40.50% is the gross profit margin for URBAN OUTFITTERS INC which we consider to be strong. Regardless of URBN'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 6.00% trails the industry average.
  • URBAN OUTFITTERS INC reported flat earnings per share in the most recent quarter. 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, URBAN OUTFITTERS INC reported lower earnings of $1.18 versus $1.61 in the prior year. This year, the market expects an improvement in earnings ($1.47 versus $1.18).

Urban Outfitters Inc. operates lifestyle specialty retail stores under the Urban Outfitters, Anthropologie, Free People, Terrain, and BHLDN brand names in the United States, Canada, and Europe. The company has a P/E ratio of 25.7, equal to the average retail industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Urban Outfitters has a market cap of $4.43 billion and is part of the services sector and retail industry. Shares are up 11% year to date as of the close of trading on Thursday.

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

Rating Change #4

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 robust revenue growth, compelling growth in net income, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. 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 15.0%. Since the same quarter one year prior, revenues rose by 43.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 48.80% is the gross profit margin for NOBLE 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 17.80% is above that of the industry average.
  • Net operating cash flow has significantly increased by 172.59% to $432.24 million when compared to the same quarter last year. In addition, NOBLE CORP has also vastly surpassed the industry average cash flow growth rate of -5.18%.
  • 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 195.5% when compared to the same quarter one year prior, rising from $54.08 million to $159.82 million.
  • 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 ($2.72 versus $1.45).

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 20.1, below the average energy industry P/E ratio of 20.2 and above the S&P 500 P/E ratio of 17.7. Noble has a market cap of $8.71 billion and is part of the basic materials sector and energy industry. Shares are up 17.1% year to date as of the close of trading on Thursday.

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

Rating Change #3

Northern Trust Corporation has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, 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 stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • 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 Capital Markets industry average. The net income increased by 18.1% when compared to the same quarter one year prior, going from $152.00 million to $179.60 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.99, 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 NORTHERN TRUST CORP is currently very high, coming in at 93.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.00% is above that of the industry average.
  • NORTHERN TRUST CORP has improved earnings per share by 17.7% 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, NORTHERN TRUST CORP reported lower earnings of $2.46 versus $2.74 in the prior year. This year, the market expects an improvement in earnings ($2.92 versus $2.46).

Northern Trust Corporation, through its subsidiaries, provides asset servicing, fund administration, asset management, and fiduciary and banking solutions for corporations, institutions, families, and individuals worldwide. The company has a P/E ratio of 18.7, equal to the average banking industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Northern Trust has a market cap of $11.35 billion and is part of the financial sector and banking industry. Shares are up 16.6% year to date as of the close of trading on Thursday.

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

Rating Change #2

Mosaic Co 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 and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • MOS's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MOS has a quick ratio of 2.38, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has increased to $1,229.30 million or 26.35% when compared to the same quarter last year. In addition, MOSAIC CO has also vastly surpassed the industry average cash flow growth rate of -115.83%.
  • MOSAIC CO's earnings per share declined by 17.9% 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, MOSAIC CO reported lower earnings of $4.40 versus $5.62 in the prior year. This year, the market expects an improvement in earnings ($5.11 versus $4.40).
  • MOS, with its decline in revenue, slightly underperformed the industry average of 1.8%. Since the same quarter one year prior, revenues slightly dropped by 1.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, MOS has underperformed the S&P 500 Index, declining 12.80% from its price level of one year ago. 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.

The Mosaic Company engages in the production and marketing of concentrated phosphate- and potash-based crop nutrients for the agriculture industry worldwide. The company has a P/E ratio of 11.7, equal to the average chemicals industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Mosaic has a market cap of $16.3 billion and is part of the basic materials sector and chemicals industry. Shares are up 8.9% year to date as of the close of trading on Wednesday.

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

Rating Change #1

SeaDrill Ltd 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, 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 gross profit margin for SEADRILL LTD is rather high; currently it is at 61.50%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 39.60% significantly outperformed against the industry average.
  • 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • SEADRILL LTD has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SEADRILL LTD increased its bottom line by earning $2.92 versus $2.56 in the prior year. This year, the market expects an improvement in earnings ($3.16 versus $2.92).
  • SDRL, with its decline in revenue, underperformed when compared the industry average of 14.3%. Since the same quarter one year prior, revenues slightly dropped by 5.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Energy Equipment & Services industry and the overall market, SEADRILL LTD's return on equity exceeds that of both the industry average and the S&P 500.

Seadrill Limited provides offshore drilling services to the oil and gas industry worldwide. Its services include drilling, completion, and maintenance of offshore wells; production drilling and well maintenance; and well services. The company has a P/E ratio of 12.4, below the average energy industry P/E ratio of 18.5 and below the S&P 500 P/E ratio of 17.7. Seadrill has a market cap of $17.11 billion and is part of the basic materials sector and energy industry. Shares are up 11.2% year to date as of the close of trading on Tuesday.

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

-- Reported by Kevin Baker in Palm Beach Gardens, Fla.

For additional Investment Research check out our Ratings Research Center.

For all other upgrades and downgrades made by TheStreet Ratings Model today check out our upgrades and downgrades list.

Tickers in this article: CFN JCP LXK MOS NE NTRS SDRL SVM URBN VC