Analyst upgrades:

• Barclays upgraded Dollar Tree (NASDAQ: DLTR) to Overweight from Equal Weight and raised its target to $64 from $48 following the better-than-expected Q2 report.
• Cowen upgraded Whirlpool (NYSE: WHR) to Outperform from Neutral. The firm cites stabilizing demand trends and recovering margins for the upgrade.
• Susquehanna upgraded Isle of Capri (NASDAQ: ISLE) citing weakness following the weak quarter. The firm, which has a $13 target on shares, expects regional operators to benefit from improving macro trends quicker than destination markets.
• Senior Housing (NYSE: SNH) was upgraded to Outperform from Market Perform at Wells Fargo.
• Barclays (NYSE: BCS) was upgraded to Outperform from Market Perform at Keefe Bruyette.
• CGI Group (NYSE: GIB) was upgraded to Buy from Speculative Buy at Canaccord.

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If you don't want to spend countless hours trying to understand not just financials, but scientific and technical jargon that biotech companies harbor, exchange-traded funds (ETFs) may be the better choice for investing in the biotechnology industry.

An ETF is similar to buying a share of a company, but instead of getting one particular company you're investing in a bundle of companies within a particular field or specialty. It's a great way to invest in something you believe in while still hedging your bets and having a bit of diversity.

Analyst upgrades:

• Jefferies upgraded shares of Alkermes (NASDAQ: ALKS) to Overweight from Neutral on valuation, as they believe the current share price undervalues Risperdal Consta and provides little to no value for other pipeline drugs.
  
• JP Morgan upgraded ASML Holding (NASDAQ: ASML) to Buy from Hold following the company's Q1 results, as they believe further estimate reductions are unlikely.
  
• UBS expects ITT Educational (NYSE: ESI) to benefit from strong enrollment growth and they see less private student lending risk. Shares were upgraded to Buy from Neutral.
• BMC Software (NYSE: BMC) was upgraded to Buy from Neutral at Goldman and added to the firm's Conviction Buy List.
  
• Credit Suisse (NYSE: CS) was upgraded to Buy from Neutral at Merrill Lynch.
  
• Covance (NYSE: CVD) was raised to Overweight from Equal Weight at First Analysis.

Analyst downgrades:

• UBS downgraded Anglo American (NASDAQ: AAUK) to Neutral from Buy and added shares to its Short-term Sell list citing the significant reduction in 2009 coal prices and estimates.
  
• Friedman Billings cut Century Aluminum (NASDAQ: CENX) to Market Perform from Outperform and lowered its target to $8 from $18 shares to reflect a lowered aluminum price forecast and financing concerns.
  
• Bernstein downgraded eBay (NASDAQ: EBAY) and Amazon (NASDAQ: AMZN) to Market Perform from Outperform citing recent share performances and the difficult macro environment.
• CommVault (NASDAQ: CVLT) was downgraded to Sell from Neutral at Goldman and added to the Conviction Buy List.
  
• TomoTherapy (NASDAQ: TOMO) was cut to Market Perform from Outperform at William Blair.
  
• Boston Properties (NYSE: BXP) was lowered to Neutral from Buy at UBS.

Analyst initiations:

• Morgan Keegan initiated Brinker (NYSE: EAT) with a Market Perform citing the difficult macro economy, relative debt levels and the competitive environment.
  
• Brookdale Senior Living (NYSE: BKD) was initiated at Oppenheimer with an Outperform rating and $12 target. The firm expects the company to benefit from growing demand for higher acuity assisted living.
  
• Baird initiated Healthcare Realty (NYSE: HR) with an Underperform rating and $19 target citing the company's premium valuation vs. the group.
• UBS initiated Expedia (NASDAQ: EXPE), Priceline (NASDAQ: PCLN), and Orbitz Worldwide (NYSE: OWW) with Neutral ratings citing the difficult near-term demand environment.
  
• FedEx (NYSE: FDX) was started at Jesup & Lamont with a Hold rating.

"Alkermes (NASDAQ: ALKS) recently produced a two-pronged positive surprise; an increase in the size of their already existing stock buyback program and a boost in their financial guidance," says John McCamant.

In his Medical Technology Stock Letter, the biotech sector expert looks at this firm which focuses on treatments for central nervous system disorders, alcohol depenence, and schizophrenia. Here is his review.

"Both of these moves were made possible by the announcement that ALKS has received a $40 million payment from Eli Lilly, their former partner for the now defunct AIR Insulin program.

"ALKS now has the authorization to buy back up to $215 million in common stock. To date, the company has bought back roughly eight million shares of common stock for a cost of about $106 million.

"Additionally, as noted, ALKS has upped their financial guidance for fiscal 2009. Operating income for the year is now expected to end up on the positive side of the ledger, with ALKS anticipating $10-$15 million for the full year.

Alkermes (NASDAQ: ALKS) is a biotechnology company that makes extended-release products for the treatment of chronic diseases. The firm developed and manufactures Vivitrol, a treatment for alcohol dependence that partner Cephalon (NASDAQ: CEPH) markets in the United States. It also makes Risperdal Consta, a long-acting version of Janssen's schizophrenia medication Risperdal. Alkermes' pipeline includes extended-release injectable, pulmonary and oral products for the treatment of central nervous system disorders, addiction and diabetes. Bristol-Myers Squibb (NYSE: BMY) and Johnson & Johnson (NYSE: JNJ) are competitors.

The firm pleased investors earlier in the week, when it expanded its stock repurchase program by $40 million. Management also guided FY09 EPS to 11-16 cents and FY09 revenues to $200-$225 million. Analysts had been looking for a 10 cent per share loss and $194.89 million. Fiscal year cash flow from operations was expected to total $25-$30 million, as compared to an original $1-$5 million estimate.

MOST NOTEWORTHY: Royal Caribbean, Alkermes and ASML Holdings were today's noteworthy downgrades:

• Morgan Stanley downgraded shares of Royal Caribbean (NYSE: RCL) to Equal Weight from Overweight to reflect margin concerns due to the high oil prices and lowered their target to $37 from $40. However, the firm maintains an Overweight rating on rival Carnival (NYSE: CCL).
  
• Baird downgraded Alkermes (NASDAQ: ALKS) to Neutral from Outperform following the company's reduced Risperdal Consta guidance. The firm does not recommend buying shares.
  
• UBS cut ASML Holdings (NASDAQ: ASML) to Neutral from Buy to reflect order uncertainty heading into 2009.

OTHER DOWNGRADES:

• U.S. Airways (NYSE: LCC) was cut at Credit Suisse to Underperform from Outperform.
  
• Goldman downgraded Cheesecake Factory (NASDAQ: CAKE) to Neutral from Buy.
  
• Nordson (NASDAQ: NDSN) was lowered to Hold from Buy at Jefferies.

"Biotechs are the ultimate recession-proof market segment," says Michael Shulman, who recommends Alkermes (NASDAQ: ALKS).

The editor of The ChangeWave Biotech Investor explains, "As investors flee companies that will be hurt by a credit crunch, money has flowed into many biotechsFears of an economic softening are pushing investors to recession-proof companies that can grow despite the economy."

Further, he contends, many biotech companies are cheap. He says, "They are at technical as well as fundamental bottoms, and sitting on large cash balances."

The bottom line, he notes: "Start considering bottom-fishing, right now. Go with growth, and companies with cash, and a good chart." One stock that he believes is "getting ready for an interesting few months" is Alkermes, the drug-delivery company.