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Speculating on companies that have recently changed their ratings can be a good short-term strategy. Normally, companies will see increases in their prices after these changes. I assessed companies which were upgraded on September 14, and I chose the top three companies with a significant change on ratings. Here is a look at the three stocks:

1. Sutor Technology Group Limited (NASDAQ:SUTR) through its subsidiaries, engages in the manufacture and sale of steel products in the People'’s Republic of China. The company offers hot-dip galvanized (HDG), preprinted galvanized (PPGI), acid pickled (AP), and cold-rolled steel products. Its HDG steel products are principally used in the electrical household appliance and construction markets; PPGI products are used in solar energy, appliances, and construction materials; and AP steel products are used as a raw material for cold-rolled steel strip and HDG steel, as well as components of automobile and manufacturing equipment.

(click to enlarge)

- The MACD marks an upward trend. RSI is in a good position. The stock is in a bullish channel.

New Rating

Roth Capital upgraded Sutor Technology Group from Neutral to Buy with a price target of $1.25.

Consensus Recommendation

(SOURCE)

Financials

The company reported the annual financial results on September 13 with the following highlights:

Revenue$531.62 Million
Net Income$12.06 Million
Cash($11.79) Million

Short Interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
8/31/20123,00024,1741.000000
8/15/20127,83816,9861.000000
7/31/20124,2918,2111.000000

My Analysis

The stock has a $1.4 price target from the Point and Figure chart. The short interest shows a decrease. The stock is trading at a forward P/E of 2.81. The MACD marks an upward trend and for this reason, I would purchase shares with a target price of $1.4 (52 weeks high).

2. Euronet Worldwide Inc. (NASDAQ:EEFT) provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers. The company operates in three segments: EFT Processing, epay, and Money Transfer. The EFT Processing segment provides electronic payment solutions consisting of automated teller machine (ATM) network participation, outsourced ATM and point-of-sale (POS) management solutions, credit and debit card outsourcing, card issuing, and merchant acquiring services; advertising, customer relationship management, currency conversion, mobile top-up, bill payment, fraud management, and foreign remittance payout services; and integrated software solutions for electronic payments and transaction delivery systems.

(click to enlarge)

- The MACD marks an upward trend. The stock is in a bullish channel. RSI is in a good position.

New Rating

Sterne Agee upgraded Euronet Worldwide from Neutral to Buy with a price target of $23.00.

Consensus Recommendation

(SOURCE)

Financials

The company reported the second-quarter financial results on August 5 with the following highlights:

Revenue$302.37 Million
Net Income$5.74 Million
Cash$178.55 Million

Short Interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
8/31/20122,342,366171,46913.660580
8/15/20122,438,559256,3769.511651
7/31/20122,534,501256,4969.881250

My analysis

The stock has a $20.5 price target from the Point and Figure chart. There have been eight insider selling transactions this year. The stock is trading at a forward P/E of 35.71. The MACD marks an upward trend and for this reason, I would purchase shares with a target price of $20.5.

3. Infosys Technologies Limited (NYSE:INFY) provides business consulting, technology, engineering, and outsourcing services worldwide. Its solutions comprise business strategy consulting, systems integration, business requirements definition, business process re-engineering, business and technology solution design, package evaluation and implementation, program management, organizational design and change management, and upgrade and maintenance services. The company also offers application development and maintenance, third party testing, information technology (IT) infrastructure rationalization, business process outsourcing (BPO), and infrastructure management services, as well as engineering services, such as product engineering and life cycle solutions.

(click to enlarge)

- The MACD marks an upward trend. The stock is in a bullish channel. RSI marks an overbought.

New Rating

BofA/Merrill Lynch upgrades Infosys Technologies from Neutral to Buy.

Consensus Recommendation

(SOURCE)

Financials

The company reported the first-quarter financial results on July 12 with the following highlights:

Revenue$1.75 Billion
Net Income$416 Million
Cash$3.69 Billion

Short Interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
8/31/201222,235,7191,584,06414.037134
8/15/201221,313,1281,295,37416.453262
7/31/201221,107,4611,931,602

10.927438

My analysis

The stock has a $54 price target from the Point and Figure chart. Short interest has increased in a month. The stock is trading at a forward P/E of 15.75. I would buy a small speculative position because the stock is bullish and the recent "upgrade" recommendation will help overcome the $54 target price.

*Chart data sourced from stockcharts, all other data sourced from Nasdaq.com and yahoo.com as well as the webs of the previously mentioned companies.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Investors buy and/or sell at their own risk. I declare that I may day-trade any stock at any time mentioned in this article. For me "long" is until I sell and few tell you that. I do not "short" stocks and few tell you that too. I also get paid one penny per view from SA and other than being published by SA and my own private stock account, I have zero connection to Wall Street and few tell you that too.

Source: Top 3 Stock Upgrades On September 17