Analyst Upgrades

• Amgen (AMGN) to overweight from neutral at Piper Jaffray.
• Goodrich Petroleum (GDP) to outperform from market perform at Wells Fargo.
• Tutor Perini (TPC) to buy from neutral at UBS.
• Covidien (COV) to buy from neutral at Goldman.
• Sara Lee (SLE) and Comcast (CMCSA) to outperform from market perform at Bernstein.
• Research In Motion (RIMM) to outperform from sector perform at FBN Securities.

Analyst Upgrades

• Piper Jaffray upgraded Red Hat (RHT) to overweight from neutral.
• Honeywell (HON) was upgraded to outperform from neutral at Cowen.
• Regal-Beloit (RBC) and Actuant (ATU) were upgraded to buy from hold at Jefferies.
• RW Baird upgraded MedAssets (MDAS) to outperform from neutral.
• Savvis (SVVS) was upgraded to outperform from market perform at William Blair.

Analyst Upgrades

• BofA/Merrill upgraded Eastman Chemical (EMN) to buy from neutral and raised its target to $82 from $80. The analyst upgraded shares based on valuation and expectations for strong earnings from fibers and performance chemicals.
• Bernstein upgraded Hershey (HSY) to market perform from underperform based on strong near-term category growth.
• Janney Montgomery upgraded Actuant (ATU) to buy from neutral with a $25 price target following the company's Q3 results.
• Infinera (INFN) was upgraded to buy from hold at Stifel Nicolaus.
• CTC Media (CTCM) was upgraded to buy from neutral at UBS.
• Williams (WMB) was upgraded to conviction buy from buy at Goldman.

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.

Even if the national headlines weren't already providing enough focus on the economy, plenty of economic data is due out as the month and the quarter wind down. U.S. economic data scheduled to be released this week include:

• Personal income (Aug. 2008): Monday 8:30 AM
• Consumer confidence index (Sept, 2008): Tuesday 10:00 AM
• Challenger job cut announcement (Sept, 2008): Wednesday 7:30 AM
• ISM manufacturing survey (Sept. 2008): Wednesday 10:00 AM
• Construction spending (Aug. 2008): Wednesday 10:00 AM
• New motor vehicle sales (Sept. 2008): Wednesday 4:00 PM
• Monster employment index (Sept. 2008): Thursday 6:00 AM
• Factory orders (Aug. 2008): Thursday 10:00 AM
• Employment situation (Sept. 2008): Friday 8:30 AM
• ISM nonmanufacturing survey (Sept. 2008): Friday 10:00 AM

Other economic events scheduled for this week include:

• Fed's Hoenig speaks on "The Economy and Monetary Policy": Monday 9:45 PM
• Fed's Lockhart speaks on the economic outlook: Tuesday 1:00 PM
• Ford Motor Co. September 2008 Sales Conference Call: Wednesday 1:00 PM
• AMETEK Inc. at Oppenheimer Industrials Conference: Thursday 8:00 AM
• DuPont at Citigroup Ethanol on the Cob Conference: Thursday 12:50 PM
• Fed's Evans speaks at Agricultural Markets and Food Price Inflation conference: Thursday 1:00 PM
• Fed's Bullard speaks at Indiana University Department of Economics: Thursday 7:00 PM
• Fed's Hoenig speaks on "The Economy and Monetary Policy": Thursday 9:45 PM
• National Association for Business Economics 50th Annual Meeting to address Future Economic Challenges: Friday 9:00 PM

Whether it's tools, or complex engineered solutions, some folks just know electro-hydraulics. There is an outfit in Butler, Wisconsin that has been engineering answers along that line for 97 years.

Actuant Corporation (NYSE: ATU) is engaged in the manufacture and marketing of industrial products and systems. Its Tools and Supplies group offers high-force hydraulic tools, electrical tools and electrical consumables to the general industrial, construction, production automation and do-it-yourself retail markets. Its Engineered Solutions group provides motion control systems for the heavy-duty truck market. These include recreational vehicle slide-outs and leveling systems, heavy truck cab-tilt systems and electro-hydraulic convertible top actuation systems. Eaton Corporation (NYSE: ETN) is a major competitor.

The company surprised the Street last week, when it reported Q1 EPS of 52 cents and revenues of $415.1 million. Analysts had been looking for 48 cents and $394.7 million. In discussing the solid numbers, the CEO cited "robust industrial segment sales as well as continued strength in the European truck market." Management also guided Q2 EPS to 39-42 cents (42 cent consensus), Q2 revenues to $385-$395 million ($379.56M consensus), FY08 EPS to $1.95-$2.05 ($1.96M consensus) and FY08 revenues to $1.62-$1.66 billion ($1.6B consensus). BMO Capital Markets subsequently reiterated its "outperform" rating on the issue and boosted its price target to $40. ATU shares popped on the news and then moved into the initial stage of a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Actuant Corporation (NYSE: ATU) is engaged in the manufacture and marketing of industrial products and systems. Its Tools and Supplies group offers high-force hydraulic tools, electrical tools and electrical consumables to the general industrial, construction, production automation and do-it-yourself retail markets. Its Engineered Solutions group provides motion control systems for the heavy-duty truck market. These include recreational vehicle slide-outs and leveling systems, heavy truck cab-tilt systems and electro-hydraulic convertible top actuation systems. Eaton Corporation (NYSE: ETN) is a major competitor.

The firm pleased investors last week, when it reported Q4 EPS of 99 cents and revenues of $390 million. Analysts had been expecting 94 cents and $366.7 million. Management also guided Q1 EPS to 93-97 cents (92 cent consensus), Q1 revenues to $390-$400 million ($382.90M consensus), FY08 EPS to $3.80-$3.95 ($3.86 consensus) and FY08 revenues to $1.55-$1.60 billion ($1.54B consensus). The stock popped on the news and has since moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys," three "buys" and four "holds." Analysts see a 15% average annual growth rate, through the next five years. The ATU P/E ratio (19.36), PEG ratio (1.29), Price to Sales ratio (1.23), Price to Book ratio (3.59), Price to Cash Flow ratio (12.74), Price to Free Cash Flow ratio (12.51), Sales Growth rate (20.15%), EPS Growth rate (25.32%) and Return on Equity (24.33%) compare favorably with industry, sector and S&P 500 averages. Over the past 52 weeks, ATU shares have traded between $45.72 and $67.86. A stop-loss of $57.75 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

Whether it's tools, or complex engineered solutions, some outfits just know electro-hydraulic systems. A leader in devising applications useful to the heavy vehicle market is headquartered in Butler, Wisconsin.

Actuant Corporation (NYSE: ATU) is engaged in the manufacture and marketing of industrial products and systems. Its Tools and Supplies group offers high-force hydraulic tools, electrical tools and electrical consumables to the general industrial, construction, production automation and do-it-yourself retail markets. Its Engineered Solutions group provides motion control systems for the heavy-duty truck market. These include recreational vehicle slide-outs and leveling systems, heavy truck cab-tilt systems and electro-hydraulic convertible top actuation systems. Eaton Corporation (NYSE: ETN) is a major competitor.