Analyst Upgrades

• Macquarie upgraded Intel (INTC) to outperform from neutral and Advanced Micro (AMD) to neutral from underperform.
• Pfizer (PFE) was upgraded to outperform from market perform at Bernstein.
• Capstead Mortgage (CMO) was upgraded to outperform from market perform at FBR Capital.
• Oppenheimer upgraded Halliburton (HAL) to outperform from perform.
• Gilead (GILD) was upgraded to outperform from sector perform at RBC Capital.
• Skilled Healthcare (SKH) was upgraded to outperform from market perform at JMP Securities.
• Citigroup upgraded CapitalSource (CSE) to buy from hold.

"Gilead Sciences (GILD) is a top-rated stock on both our fundamental and technical screens; indeed, the biotech world tends to run on its own steam, and this stock seems to by capable of defying gravity;" says Mike Turner.

The editor of Trade of the Week explains, "The company, based in Foster City, California, has just about everything that I look for in a company and, by extension, its stock.

"True, the biotech sector cannot completely ignore the broader markets, but when a fundamentally and technically strong stock like this bubbles to the surface, I do not want to ignore it.

Analyst Upgrades

• Oppenheimer upgraded Teva (TEVA) to outperform from perform. The firm expects the company to generate strong 2H10 earnings and thinks the competition created by Novartis's (NVS) Gilenia will be limited.
• Citigroup upgraded Celanese (CE) to buy from hold, citing valuation and the company's move to add assets in China, as well as possible takeover interest.
• Needham raised Stereotaxis (STXS) to buy from hold as the firm thinks that strong clinical data recently announced by the company could result in faster adoption rates of its robotic surgery.
• BMO Capital upgraded Smurfit-Stone Container (SSCC) given strength in the containerboard market.
• Melco Crown (MPEL) was upgraded to buy from neutral at UBS.
• Goldman Sachs raised Temple-Inland (TIN) to buy from neutral.
• Barclays upgraded Lloyds Banking (LYG) to equal weight from underweight.

Analyst Upgrades

• Deutsche Bank upgraded Smurfit-Stone (SSCC) to buy from hold after raising its estimates for containerboard names and upped its target for shares to $28 from $22. The firm also raised its price target for International Paper (IP) to $38 from $32, for Packaging Corp. (PKG) to $33 from $28, for Temple-Inland (TIN) to $31 from $28, for Greif (GEF) to $67 from $65, and for Rock-Tenn (RKT) to $70 from $65. All stocks are buy rated.
• ThinkEquity upgraded VMware (VMW) to buy from hold and has a $90 price target on the stock. The firm expects VMware to benefit from increased virtual infrastructure adoption and improving vSphere solutions.
• Needham upgraded Cavium Networks (CAVM) to strong buy from buy, citing the recent pullback in shares following Cisco's (CSCO) cautious commentary. The firm has a $37 target on the stock.
• Intercontinental Exchange (ICE) was upgraded to outperform from neutral at Credit Suisse.
• MedAssets (MDAS) was upgraded to buy from hold at Auriga.
• Brookfield Properties (BPO) was upgraded to buy from hold at Citigroup.

Analyst upgrades:

• Keefe Bruyette upgraded Goldman Sachs (GS) to Outperform from Market Perform with a $190 price target following the company's Q2 results. The firm believes the company's settlement with the SEC removes an overhang on shares.
• Stifel Nicolaus upgraded Health Care REIT (HCN) to Buy from Hold based on valuation and added shares to the Stifel REIT Income List. The firm has a $47 target on the stock.
• FBR Capital upgraded Annaly Capital (NLY) to Outperform from Market Perform citing the company's surprise dividend increase. The firm has a $20 target on the stock.
• Devon Energy (DVN) was upgraded to Overweight from Equal Weight at Barclays.
• Overseas Shipholding (OSG) was upgraded to Overweight from Underweight at JP Morgan.
• Cintas (CTAS) was upgraded to Neutral from Underperform at Baird.

Analyst Upgrades

• Deutsche Bank upgraded Southern Copper (SCCO) to buy from hold to reflect valuation and positive near-term catalysts. The firm raised its target for shares to $38 from $35.
• JMP Securities upgraded Ultimate Software (ULTI) to outperform from market perform. The firm cites the company's expanding employee base for the upgrade. The firm has a $40 target on the stock.
• Piper Jaffray upgraded Aeropostale (ARO) to neutral from underweight following the company's Q4 results and raised its target for shares to $31 from $24.
• Kennametal (KMT) was upgraded to sell from conviction sell at Goldman.
• Lifetime Brands (LCUT) was upgraded to outperform from market perform at Barrington.
• Volvo (VOLVY) was upgraded to overweight from underweight at JPMorgan.

Gilead Sciences (GILD - option chain) stock is trading lower today after the company announced last night that its hypertension treatment darusentan missed the primary goal of a Phase III trial. As a result, GILD says it has ended development of the drug in favor of spending resources on other products in its pipeline. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on GILD.

This morning, GILD opened at $45.90. So far today the stock has hit a high of $46.28 and a low of $45.01. As of 12:15, GILD is trading at $45.18, down $1.78 (-3.8%). The chart for GILD looks bullish and S&P gives GILD a positive 5 STARS (out of 5) strong buy ranking.

TheStreet.com's Jim Cramer says the Senate is filled with more-savvy politicians, and the upside for beaten-down names is huge.

Nancy Pelosi has now said her piece. The most unpopular Speaker of the House in the history of Wall Street has gotten her precious health care legislation through the House after ramming through a stimulus package that had far too little infrastructure and far too much pay raise for municipal and state workers, the most powerful interest group in the country.

But this time the Senate sees through it, and the politicians -- despite Pelosi's insistence that Tuesday's election went her way -- know better. There are pages after pages after pages in this bill that look threatening. But here's the rub: This bill's public option, the one that is supposed to be a killer to everything health care, should affect no more than 6 million people over a 10-year period, according to the Congressional Budget Office. In order to get 60 votes in the Senate, even that may prove to be too powerful an option.

"Gilead Sciences (NASDAQ: GILD) develops treatments for life-threatening diseases and specializes in drugs for HIV, the virus that causes AIDS," notes Hannah Choe.

The contributing editor to Personal Finance explains, "Already the market leader in HIV antivirals, Gilead is in the beginning stages of developing Quad, the first-ever, four-in-one AIDS pill.

"The manufacture of HIV drugs, which accounts for more than three-quarters of revenue, is Gilead's highest-grossing business. This segment has held up through the recession; in the second quarter product sales for the antiviral franchise grew 26% from a year ago to $1.41 billion.

Last week, Goldman Sachs Group Inc. (NYSE: GS) and JPMorgan Chase & Co. (NYSE: JPM) reported stellar quarterly results. Lots more third quarter reports from the big banks are due this week.

However, analysts surveyed by Thomson Reuters anticipate year-over-year earnings declines from Bank of New York Mellon (NYSE: BK), BB&T Corp. (NYSE: BBT), M&T Bank Corp. (NYSE: MTB), Northern Trust Corp. (NASDAQ: NTRS), PNC Financial Services Group Inc. (NYSE: PNC), State Street Corp. (NYSE: STT), US Bancorp (NYSE: USB), and Wells Fargo & Co. (NYSE: WFC).

"Being contrarians, we are always looking for laggard stocks with the potential to rebound," says turnaround expert George Putnam.

In his The Turnaround Letter, the advisor reviews four medical and pharmaceutical stocks that have been among the worst performers in the S&P 100 since the market bottom. Despite their poor performance, he thinks they may be due for a rebound.

"We think that investors who got left behind by the first leg of the market rally are struggling to catch up.

"Gilead Sciences (NASDAQ: GILD), one of the world's largest biotechs, is a stock for all seasons," say growth expert Alexander Green.

The investment director for The Oxford Club explains, "It's a fine company with a solid balance sheet, a recession-proof business and excellent growth prospects."

"Gilead focuses on three main areas, including cardiovascular conditions and respiratory diseases. (Many may have taken its anti-influenza drug Tamiflu, Letairis to treat hypertension, or Macugen to treat macular degeneration.)

Yesterday, Gilead Sciences (NASDAQ: GILD) announced that it entered a license and collaboration agreement with Tibotec Pharmaceuticals. The two firms will combine to develop and commercialize a new once-daily, fixed-dose treatment for HIV. GILD's CEO John Martin noted, "Gilead and Tibotec share a strong focus on bringing safe and effective treatment options to people living with HIV/AIDS."

If the collaboration is approved, GILD will assume the lead in manufacturing, registration, distribution, and commercialization of a fixed-dose combination of Truvada and rilpivirine. GILD will not be responsible for the commercialization of this combination in the developing world and Japan, which will be handled by Tibotec. The two companies will work toward an agreement to market the combination in the developing world.

Few would argue with the claim that Gilead Sciences (NASDAQ: GILD) is the best-managed biopharma company on the planet.

It dominates the HIV treatment market and gets a 19%-plus royalty on Tamiflu, which is used to treat H1N1 (swine) flue. Gilead also has several drugs on or headed for the market to treat pulmonary disease and hard-to-treat high blood pressure.

Your best strategy for life-changing profits?

Buy the stock and sell the calls (then use the cash to buy puts on the market, which is headed down further.) Or buy long-term calls and keep an eye on them.

Next: Biotech Stock #2

Last year, as the market sank, one group actually went up -- large-cap, cashflow positive biotech and genomics companies.

This year, interest has shifted to the little guys -- the speculative biotech stocks that could be 10- or 20-baggers with one breakthrough.

Here are six biotech stocks with the potential to deliver life-changing profits:

Biotech Stock #1: Gilead Sciences (NASDAQ: GILD)
Biotech Stock #2: Questcor Pharmaceuticals (NASDAQ: QCOR)

Biotech Stock #3: Cepheid (NASDAQ: CPHD)
Biotech Stock #4: Curis (NASDAQ: CRIS)
Biotech Stock #5: Cerus Corp. (NASDAQ: CERS)
Biotech Stock #6: Illumina (NASDAQ: ILMN)