TheStreet Ratings released rating changes on 133 U.S. common stocks for week ending November 4, 2011. 89 stocks were upgraded and 44 stocks were downgraded by our stock model.
See if (APC) is in our portfolio
Rating Change #10Anadarko Petroleum (APC) 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, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and disappointing return on equity.Highlights from the ratings report include:
- APC's revenue growth has slightly outpaced the industry average of 30.0%. 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.
- Compared to its closing price of one year ago, APC's share price has jumped by 27.49%, exceeding the performance of the broader market during that same time frame. Although APC had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- ANADARKO PETROLEUM 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. 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, ANADARKO PETROLEUM CORP turned its bottom line around by earning $1.52 versus -$0.34 in the prior year. This year, the market expects an improvement in earnings ($3.22 versus $1.52).
- 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 Oil, Gas & Consumable Fuels industry and the overall market, ANADARKO PETROLEUM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 11634.6% when compared to the same quarter one year ago, falling from -$26.00 million to -$3,051.00 million.
Rating Change #9
Telefonos De Mexico S.A.B. De C.V. (TFONY) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins, increase in stock price during the past year and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally poor debt management, weak operating cash flow and deteriorating net income.
Highlights from the ratings report include:
- The gross profit margin for TELMEX-TELEFONOS DE MEXICO is rather high; currently it is at 61.30%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.20% is above that of the industry average.
- After a year of stock price fluctuations, the net result is that TFONY'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. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The revenue fell significantly faster than the industry average of 7.3%. Since the same quarter one year prior, revenues fell by 43.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The debt-to-equity ratio of 1.26 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, TFONY has a quick ratio of 0.57, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly decreased to $238.53 million or 69.64% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Rating Change #8
Cimarex Energy Company (XEC) 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, 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:
- XEC's revenue growth trails the industry average of 35.5%. Since the same quarter one year prior, revenues rose by 14.6%. 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.
- The gross profit margin for CIMAREX ENERGY CO is currently very high, coming in at 72.40%. Regardless of XEC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, XEC's net profit margin of 29.50% significantly outperformed against the industry.
- Net operating cash flow has slightly increased to $332.43 million or 5.73% when compared to the same quarter last year. Despite an increase in cash flow, CIMAREX ENERGY CO's average is still marginally south of the industry average growth rate of 7.26%.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, XEC has underperformed the S&P 500 Index, declining 19.97% 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.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income has decreased by 0.0% when compared to the same quarter one year ago, dropping from $128.22 million to $128.15 million.
Rating Change #7
Regeneron Pharmaceuticals Inc (REGN) 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 weak operating cash flow.
Highlights from the ratings report include:
- 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 -$1.27 versus -$0.85 in the prior year. For the next year, the market is expecting a contraction of 122.0% in earnings (-$2.82 versus -$1.27).
- 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 84.1% when compared to the same quarter one year ago, falling from -$33.88 million to -$62.37 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Biotechnology industry and the overall market, REGENERON PHARMACEUT'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 -$46.74 million or 129.08% 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.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.3%. Since the same quarter one year prior, revenues slightly dropped by 3.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
Rating Change #6
NRG Energy Inc (NRG) 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 and solid stock price performance. 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 generally poor debt management.
Highlights from the ratings report include:
- 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. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- NRG, with its decline in revenue, slightly underperformed the industry average of 0.1%. Since the same quarter one year prior, revenues slightly dropped by 0.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- NRG ENERGY 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. 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, NRG ENERGY INC reported lower earnings of $1.83 versus $3.39 in the prior year. For the next year, the market is expecting a contraction of 66.1% in earnings ($0.62 versus $1.83).
- 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 Independent Power Producers & Energy Traders industry. The net income has significantly decreased by 124.7% when compared to the same quarter one year ago, falling from $223.00 million to -$55.00 million.
Rating Change #5
CenturyLink Inc (CTL) 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, good cash flow from operations, expanding profit margins 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:
- CTL's very impressive revenue growth greatly exceeded the industry average of 9.3%. Since the same quarter one year prior, revenues leaped by 162.9%. 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 142.38% to $1,455.00 million when compared to the same quarter last year. In addition, CENTURYLINK INC has also vastly surpassed the industry average cash flow growth rate of 0.70%.
- The gross profit margin for CENTURYLINK INC is rather high; currently it is at 58.00%. Regardless of CTL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.00% trails the industry average.
- Even though the current debt-to-equity ratio is 1.01, it is still below the industry average, suggesting that this level of debt is acceptable within the Diversified Telecommunication Services industry.
- 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 39.6% when compared to the same quarter one year ago, falling from $232.00 million to $140.00 million.
Rating Change #4
LyondellBasell Industries (LYB) has been upgraded by TheStreet Ratings from sell 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 notable return on equity. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 13.3%. Since the same quarter one year prior, revenues rose by 29.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, LYB has a quick ratio of 1.92, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to $1,531.00 million or 36.08% when compared to the same quarter last year. In addition, LYONDELLBASELL INDUSTRIES NV has also modestly surpassed the industry average cash flow growth rate of 28.43%.
- The gross profit margin for LYONDELLBASELL INDUSTRIES NV is rather low; currently it is at 15.00%. Regardless of LYB's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.70% trails the industry average.
Rating Change #3
Loews Corporation (L) 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, attractive valuation levels, 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 lackluster performance in the stock itself.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 350.0% when compared to the same quarter one year prior, rising from $36.00 million to $162.00 million.
- Net operating cash flow has significantly increased by 1066.31% to $1,108.00 million when compared to the same quarter last year. In addition, LOEWS CORP has also vastly surpassed the industry average cash flow growth rate of 82.69%.
- LOEWS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, LOEWS CORP increased its bottom line by earning $3.11 versus $1.31 in the prior year. For the next year, the market is expecting a contraction of 6.1% in earnings ($2.92 versus $3.11).
- L, with its decline in revenue, underperformed when compared the industry average of 20.8%. Since the same quarter one year prior, revenues slightly dropped by 7.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
Rating Change #2
Motorola Solutions Inc (MSI) 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 reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.8%. Since the same quarter one year prior, revenues rose by 10.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MOTOROLA SOLUTIONS 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 two years. We feel that this trend should continue. During the past fiscal year, MOTOROLA SOLUTIONS INC turned its bottom line around by earning $0.84 versus -$1.12 in the prior year. This year, the market expects an improvement in earnings ($2.54 versus $0.84).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Communications Equipment industry average, but is less than that of the S&P 500. The net income increased by 16.4% when compared to the same quarter one year prior, going from $110.00 million to $128.00 million.
- Despite currently having a low debt-to-equity ratio of 0.35, 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 MSI's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.89 is high and demonstrates strong liquidity.
Rating Change #1
Consol Energy Inc (CNX) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, good cash flow from operations, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- 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 122.0% when compared to the same quarter one year prior, rising from $75.38 million to $167.33 million.
- CNX's revenue growth trails the industry average of 35.5%. Since the same quarter one year prior, revenues rose by 13.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has increased to $456.92 million or 22.47% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 7.26%.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, CONSOL ENERGY INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- 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.
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