Analyst upgrades:

• Deutsche Bank upgraded Coca-Cola (NYSE: KO) to Buy from Hold on expectations that stable volumes and a better outlook for currency and commodities will lead to higher earnings visibility. The firm raised its price target on shares to $62 from $52.
• FBR Capital upgraded Goodrich (NYSE: GR) to Outperform from Market Perform as it finds the stock's valuation compelling following the recent pullback. The firm raised its target on shares to $65 from $46.
• William Blair upgraded Cisco (NASDAQ: CSCO) to Outperform from Market Perform after channel checks indicated demand is accelerating as the firm finds the stock's valuation compelling at current levels.
• Robbins & Myers (NYSE: RBN) was upgraded to Outperform from Neutral at Baird.
• Disney (NYSE: DIS) and Viacom B (NYSE: VIA.B) were upgraded to Neutral from Underperform at BofA/Merrill, while News Corp. (NASDAQ: NWS) was upgraded to Buy from Neutral.

Analyst upgrades:

• FBR Capital upgraded Ann Taylor (NYSE: ANN) to Outperform from Market Perform to reflect a recovery in the missy sector and the company's product improvement. The firm raised its target on shares to $19 from $13.
• Roth Capital upgraded Marvell Tech (NASDAQ: MRVL) to Buy from Hold based on product cycle strength in wireless and Ethernet, HDD share gains, and a return of PC growth. Target is $22.
• Goldman upgraded Colgate (NYSE: CL) to Buy from Neutral citing valuation and expectations for a pick-up in unit growth. The firm raised its price target to $85 from $83. Note that Goldman downgraded Clorox to Neutral from Buy.
• Cadbury (NYSE: CBY) was upgraded to Neutral from Underweight at HSBC.
• Garmin (NASDAQ: GRMN) was upgraded to Buy from Underperform at BofA/Merrill.
• Qwest (NYSE: Q) was upgraded to Market Weight from Underweight at Thomas Weisel.

Talbots Inc. (NYSE: TLB), the fashion retailer that sold its J. Jill brand in the most recent quarter, is scheduled to discuss its second-quarter 2009 results Wednesday in a conference call at 10:00 AM ET, hosted by CEO Trudy Sullivan and other members of the senior management team. You can catch the live webcast of the call on the company's website.

For the three months that ended in July, analysts surveyed by Thomson Reuters expect the Massachusetts-based company to report that its net loss widened from a year ago to $0.52 per share. Revenue for the quarter is expected to have fallen 39.1% to $309.3 million.

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

• American Eagle Outfitters Inc. (NYSE: AEO) Q2 profit fell short of estimates as same-store sales declined.
• Ann Taylor Stores Corp. (NYSE: ANN) Q2 earnings beat very low expectations and same-store sales fell.
• Big Lots Inc. (NYSE: BIG) reported better-than-expected numbers for Q2, sending shares upward.
• Burger King Holdings Inc. (NYSE: BKC) posted a better-than-expected Q4 profit though revenue declined.
• China Petroleum & Chemical Corp. posted a record Q2 profit after restrictions on fuel prices were lifted.
• Dell Inc. (NASDAQ: DELL) said its Q2 earnings declined, but they still topped analysts' expectations.

Ann Taylor Stores (NYSE: ANN) reported earnings for the second quarter this past Friday. I didn't think the results were good at all, but the stock did close higher by the end of the trading session. On an adjusted basis, net income dropped like a rock to 6 cents per share from 53 cents per share in the year-ago period. According to Bloomberg, Ann Taylor beat estimates by 3 cents.

Interestingly enough, the market did agree with me early on. That Bloomberg piece mentioned how the shares experienced a decline upon the release. Later on, the shares rebounded as buyers stepped in to partake of a perceived opportunity.

Analyst upgrades:

• Keefe Bruyette upgraded Intercontinental Exchange (NYSE: ICE) to Market Perform from Underperform following the company's in-line quarter and extended buyback. The firm raised its target price on shares to $103 from $98.
• Merriman upgraded Cree (NASDAQ: CREE) to Buy from Neutral after transitioning coverage of the stock as it believes HB-LED chips are gaining momentum and that the company can top its recently raised guidance.
• Deutsche Bank upgraded Glatfelter (NYSE: GLT) to Buy from Hold following the company's Q2 results due to falling net debt levels and valuation. The firm raised its target on shares to $14 from $8.
• Corporate Executive Board (NASDAQ: EXBD) was upgraded to Neutral from Underperform at Baird.
• Cognizant (NASDAQ: CTSH) was upgraded to Buy from Neutral at Goldman.
• Unit Corp. (NYSE: UNT) was upgraded to Buy from Sell at Jesup & Lamont.

Analyst upgrades:

• Citigroup upgraded Robert Half (NYSE: RHI) to Hold from Sell following the company's Q2 results, believing the worst may be behind the company. Citi raised its target on shares to $24 from $18.
• Goldman upgraded AnnTaylor (NYSE: ANN) to Buy from Neutral and raised its target to $13 from $6.50, citing improved merchandising and inventories.
• Baird upgraded TrueBlue (NYSE: TBI) to Outperform from Underperform and raised its target to $12 from $9, citing the better-than-expected Q2 report and guidance, strong balance sheet, and valuation.
• F5 Networks (NASDAQ: FFIV) was upgraded to Neutral from Underperform at BofA/Merrill.
• Credit Suisse (NYSE: CS) was upgraded to Buy from Hold at Deutsche Bank.
• Sanmina (NASDAQ: SANM) was upgraded to Neutral from Underperform at Credit Suisse.

Does it make sense to buy a stock that is up 300%?

If so, I would want to be darn sure about future earnings prospects needed to support a premium valuation.

In the case of AnnTaylor (NYSE: ANN), I'm not convinced that future prospects are secure.

Recently, the company announced cautious guidance suggesting that difficulties will persist through the remainder of the year. This comes in the aftermath of announcing a first quarter loss and decline in same-store sales.

While consumer confidence might have soared in April, the move seems to be in response to a two-month surge in stocks versus any real strength on the home front.

The jobs market is still poor with stagnant or declining wages. Corporations are still in lay-off mode and oil prices are marching ever higher. In other words, there are still hurdles to overcome before the "all clear" can be given.

I don't mean to rain on the parade of recovery, but let's not get too far ahead of ourselves.

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

• AnnTaylor Stores Corp. (NYSE: ANN) reported a smaller-than-expected Q1 loss as sales slumped.
• Barnes & Noble Inc. (NYSE: BKS) smaller-than-expected Q1 net loss sent shares higher.
• Children's Place Retail Stores Inc. (NASDAQ: PLCE) solid Q1 results were in line with expectations.
• Dick's Sporting Goods Inc. (NYSE: DKS) posted higher-than-expected Q1 results but same-store sales fell.
• Gap Inc. (NYSE: GPS) lower Q1 earnings beat expectations and lower revenue was in line.

The Talbots, Inc. (NYSE: TLB), a retailer targeted to women and a colleague of businesses such as Macy's (NYSE: M) and Ann Taylor (NYSE: ANN), posted Q4 earnings on Monday after the bell. Actually, they weren't earnings, they were losses. And they were worse than last year's numbers. The chain said it lost, on an adjusted basis, $2.40 per share from continuing operations. In the fourth quarter of the previous fiscal year, Talbots lost only $0.13 per share from continuing operations.

In terms of expectations, this source says that the loss was much wider than anticipated. Net sales for the quarter declined 23%. Cash from operations is a fraction of what it once was. And same-store sales simply bombed, diving almost 25%!

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

• American International Group Inc. (NYS: AIG) posted a record loss even as it asks for more taxpayer funds.
• AnnTaylor Stores Corp. (NYSE: ANN) shares sank after it missed Q4 expectations by a wide margin.
• AutoZone Inc. (NYSE: AZO) reported strong Q2 results, sending shares upward toward its 52-week high.
• Big Lots Inc. (NYSE: BIG) shares soared after it reported better-than-expected numbers for Q4.
• Chico's FAS Inc. (NYSE: CHS) Q4 loss widened on impairment charges and severance costs.

Ann Taylor (NYSE: ANN) is not the darling of Wall Street today. As I write this, the retailer's shares have lost 30% of their value. Trading volume is heavy. The company missed Wall Street's estimates by a pretty wide margin.

The call, was for an adjusted loss of $0.55 per share in the fourth quarter. According to the press release, Ann Taylor lost $1.03 per share on an adjusted basis. Last year at this time, there was a profit of $0.19 per share. What a difference a year makes. By the way, if you include all the GAAP stuff in the current Q4, Ann Taylor lost an amount equal to the mark of the beast. I don't even want to write the evil number out, but it begins with a 6 if you want a hint.

The Dow was up nearly 500 points on Friday. Everything's fine, right? Not on your life. It's going to be a lousy Christmas for mall retailers such as Gap (NYSE: GPS) and Abercrombie & Fitch (NYSE: ANF), and it might be especially lousy for AnnTaylor (NYSE: ANN). What a pathetic story this one is.

AnnTaylor reported earnings for the third quarter yesterday, and it's stock closed down more than 9% on better-than-average volume. Here's why: the bottom line broke even on an adjusted basis, the analysts were calling for a penny earnings per share, and same-store sales plummeted -- I mean plummeted -- more than 19%. Those comps fell like the public approval rating of a CEO's compensation package in the context of the current economic quagmire (well, actually, they didn't fall that badly). The fact that the stock dropped only about 9% is pretty amazing. I think the decline should have gone well into the double digits. After all, management at AnnTaylor really has no idea how its Christmas season will ultimately turn out. Well, they have a little bit of an idea. They know it's going to stink. Badly. I suppose it was the euphoria of the day that kept a check on the stock's decline.

Retail is in the doghouse. Even biggies like Walmart (NYSE: WMT) and Target (NYSE: TGT) are going to have to hustle more than ever before to keep ahead of their competitors in this dreadful recessionary environment and hope that they can convince their shoppers to pull out as much of the green stuff as possible at their respective points of sale. It won't be easy. And if the big brand names are finding it challenging out there, then a colleague like AnnTaylor might not have much of a chance of bringing traffic out from the cold and onto the sales floor. As far as the shares go, I think they will be heading lower. I mean, I don't think there's much of a mystery there. I can't see what would possibly make the shares go higher from here. Then again, we have been trading on an irrational playfield as of late, so I do suppose anything is possible. For me, I'll stay away from AnnTaylor and make certain that my portfolio has nothing to do with it.

Disclosure: I don't own any company mentioned; positions can change at any time.

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

• AnnTaylor Stores Corp. (NYSE: ANN) posted dismal Q3 results as same-store sales sank.
• Autodesk Inc. (NASDAQ: ADSK) declined to release an outlook for next year due to the economic turmoil.
• BASF AG (OTC: BASFY) profit warning resulted in analysts' upgrades and downgrades both.
• Dell Inc. (NASDAQ: DELL) handily beat Q3 expectations due in part to share buybacks.
• GameStop Corp. (NYSE: GME) missed Q3 earnings expectations and same-store sales declined.
• Hewlett-Packard Co. (NYSE: HPQ) forecast Q4 results above estimates on cost cutting and global reach.
• Home Depot Inc. (NYSE: HD) reported better-than-expected Q3 results though sales had declined.
• LDK Solar Co. Ltd. (NYSE: LDK) Q3 earnings more than doubled and revenued surged 70%.
• Lowe's Cos. Inc. (NYSE: LOW) posted better-than-expected Q3 results though same-store sales slipped.
• McDonald's Corp. (NYSE: MCD) 2009 earnings prospects resulted in an analyst's upgrade.
• Nokia Corp. (NYSE: NOK) earnings warning resulted in upgrades from a few analysts.
• PetSmart Inc. (NASDAQ: PETM) topped expectations and forecast full-year profits higher than estimates.
• Suntech Power Holdings Co. (NYSE: STP) fell short of earnings expectations and lowered its guidance.
• Trina Solar Ltd. (NYSE: TSL) Q3 earnings quadrupled and revenue more than tripled on increased demand.