Analyst upgrades:

• Jefferies upgraded CME Group (CME) to Buy from Hold and has a $330 target on the stock. The firm believes increased regulatory concerns have created a buying opportunity and notes that CME Group's fundamentals are stable-to-improving.
• Susquehanna upgraded Priceline.com (PCLN) to Positive from Neutral and has a $230 target on the stock. The firm believes Priceline.com likely outperformed expectations in Q4.
• Citigroup upgraded AutoZone (AZO) to Buy from Hold citing an attractive valuation, favorable industry trends, and the potential for margin expansion. The firm raised its target price on shares to $188 from $176.
• Genzyme (GENZ) was raised to Sell from Conviction Sell at Goldman.
• Disney (DIS) was upgraded to Neutral from Underweight at JP Morgan.
• Exxon Mobil (XOM) was upgraded at Collins Stewart to Buy from Hold.

Is the market overpriced? Maybe it is cheap, or perhaps it is fairly valued. This is the third in a series examining the issue. Still, it has been my contention that it does not make any difference because no matter how the market is valued as a whole, there are plenty of cheap stocks out there to accommodate a large amount of capital allocation even this deep into a bull run.

If you would like to follow along from the beginning, the initial post screened stocks for lower than market average P/E ratios: Serious Money: Market Looks Cheap to Me -- 35 Stocks. In the second installment, I looked at yield and PEG ratios: Serious Money: Still Cheap Market -- 35 Stocks + Yields & Growth.

Let's try and reduce the gambling by examining the facts and ignoring what the bulls and bears are chatting up at the moment. We started the process by screening for lower than market average P/E ratios, see: Serious Money: Market Looks Cheap to Me -- 35 Stocks.

Two more important criteria influence today's review: the yield, a favorite of "my pal Warren"; and the price-to-earnings-to-growth (PEG) a focus of Peter Lynch, the retired fund manager extraordinaire of Fidelity's Magellan Fund.

I've upgraded auto parts chain AutoZone (AZO) to buy from the hold rating issued on November 4, 2009 at a price of $139.35. Here's why:

AutoZone's stock appears to have reversed, with a bottom in place at $135. In November 2009, the stock reversed and broke out a bear hug pattern, rising above the key, 50-day moving average. AutoZone was first recommended with a Buy Rating on March 30, 2009 at a price of $163.40.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Advance Auto Parts Inc. (AAP) was downgraded due to concerns about its 2010 earnings outlook.
• Analogic Corp. (ALOG) received an analyst's downgrade after it reported weaker-than-expected earnings.
• AutoZone Inc. (AZO) strong Q1 results beat earnings expectations, but shares rose only a little.
• BWAY Holding Co. (BWY) received an analyst's upgrade following release of its Q4 results.
• Casey's General Stores Inc. (CASY) topped Q2 earnings estimates but lower revenue fell short.
• Ciena Corp. (CIEN) shares plummeted after it fell short of its earnings expectations for Q4.

AutoZone (AZO) is in the fast lane. The stock has done reasonably well this year, and the first-quarter report, released on Tuesday, shows that the company still knows how to drive earnings growth.

According to the company's earnings report, sales increased well over 7% and earnings per share expanded by better than 26%. Income was pegged at $2.82 per share. That was way above the call. Our earnings preview indicates an expectation of $2.66 per share. Clearly, management is doing something right.

AutoZone Inc. (AZO), the nation's largest aftermarket auto parts chain, is scheduled to discuss its financial results for the fiscal first quarter in a conference call Tuesday, December 8, at 10:00 AM (ET). You can catch the live webcast of the call on the company's website.

The three months that ended in November saw the Cash for Clunkers program, and the Memphis-based company became the parts supplier for the state of Arkansas. Analysts surveyed by Thomson Reuters expect Autozone to report that its earnings rose 16.2% from a year ago to $2.66 per share. Revenue for the quarter is expected to total $1.6 billion, 7.4% higher than a year ago.

AutoZone Inc.'s stock (NYSE: AZO) remains a bit of an enigma, hence for now, I'm placing a Hold on the company's shares, first recommended on March 39, 2009 at a price of $163.40.

Auto parts chain AutoZone's forecast revenue growth for FY2010 of 4-6% is sufficient following a 4.5% gain in FY2009, including a 5.4% increase in same store sales in Q4. The headwinds are real: high U.S. gasoline prices that might delay purchases, but they are offset by long-term trends: more drivers maintaining older, used cars because they aren't able to purchase a new one.

Analyst upgrades:

• Deutsche Bank upgraded Clorox (NYSE: CLX) to Buy from Hold on valuation and believes upside to earnings forecasts is likely. The firm raised its target on shares to $66 from $65.
• Kaufman Bros. upgraded eBay (NASDAQ: EBAY) to Buy from Hold on expectations improved Marketplace fundamentals will serve as a positive catalyst for shares. The firm raised its price target on the stock to $29 from $22.
• Roth Capital believes Zumiez (NASDAQ: ZUMZ) is well positioned for improved results and margins. The firm, which upgraded shares to Buy from Hold and raised its target to $22 from $16, said September back-to-school results bode well for the holiday season and demonstrate that Zumiez can drive conversion during peak shopping periods.
• Northrop Grumman (NYSE: NOC) was upgraded to Sell from Conviction Sell at Goldman.
• Adobe (NASDAQ: ADBE) was upgraded to Outperform from Neutral at Baird.
• Monster Worldwide (NYSE: MWW) was upgraded to Overweight from Neutral at JPMorgan.

AutoZone (NYSE: AZO) is a specialty retailer and distributor of automotive replacement parts and accessories. Its stores offer the do-it-yourself car tech tremendous value on parts and accessories. The company stocks all kinds of parts and has a great sales staff. In my experience, their parts personnel have always been very knowledgeable and extremely helpful.

On Sept. 23, the company reported a 3% decline in its fiscal fourth-quarter profit. This decline in earnings could have been the result of the government's "cash for clunkers" plan, which saw many older vehicle owners turn in their cars for a credit toward the purchase of a new vehicle.

As many shoppers have realized in this recession, just because something is cheap doesn't mean it's a bargain.

This is especially true in the stock market, where you definitely get what you pay for.

There have been plenty of low-priced deals on stocks lately, as plenty of good companies watched their shares take a beating in our economic crisis. But that doesn't mean all cheap stocks are worth buying. Unless that bargain goes up in value, it's not a bargain.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Activision Blizzard Inc. (NASDAQ: ATVI) shares rose after it reaffirmed its full-year earnings and sales outlook.
• Automatic Data Processing Inc. (NASDAQ: ADP) will have low double-digit EPS growth, predicts one analyst.
• AutoZone Inc. (NYSE: AZO) posted a decline in earnings but a small rise in sales, sending shares lower.
• Bed Bath & Beyond Inc. (NASDAQ: BBBY) posted better-than-expected Q2 earnings and higher revenue.
• CarMax Inc. (NYSE: KMX) rallied to a new 52-week high after topping analysts' Q2 earnings expectations.
• Carnival Corp. (NYSE: CCL) reported better-than-expected Q3 results and raised its full-year guidance.

Much of the focus this week will no doubt be on the FOMC meeting on interest rates and the subsequent decision, as well as on the G-20 meeting in Pittsburgh, were the agenda will include bonuses for bank executives among other things.

Things will be fairly quiet again on the earnings front as the next earnings season has yet to ramp up. However, analysts surveyed by Thomson Reuters do have high hopes for a handful of companies that will release results this week.

The Pep Boys -- Manny, Moe & Jack (NYSE: PBY) issued Q2 earnings on Tuesday after the bell. The aftermarket service business for automobiles, whose related companies include AutoZone (NYSE: AZO) and AutoNation (NYSE: AN), said net sales fell about 2%, and earnings per share increased 50% to 15 cents. The earnings growth was actually better than that since there were a couple of items in the previous year's quarter that benefited the bottom line.

According to Reuters, the expectation was for 14 cents per share in net income. Yep, we got the beat-by-a-penny cliche in full effect here. Management credited cost containment and service sales as drivers for the quarter.

AutoZone's stock has not performed as well as I had expected. Technically, AZO has straddled the 50-day moving average for two months, or as a friend and trading guru used to say, "The stock is meandering."