The focus of last week's preview was on oil and energy companies, and we saw that big oil had a good week, reporting better-than-expected results and record profits driven by high prices in the third quarter. Energy-related companies are well represented again this week and expectations in general remain high.

Early in the week, analysts surveyed by Thomson Financial anticipate that the big earnings gainers will include EOG Resources Inc. (NYSE: EOG), Anadarko Petroleum Corp. (NYSE: APC), and Cimarex Energy Co. (NYSE: XEC), which are expected to post profits of $2.24 per share (up 64.7% from a year ago), $1.48 per share (up 52.7%) and $2.26 per share (up 61.1%) respectively. All three of them have offered positive surprises in recent quarters, and analysts on average recommend buying EOG and Anadarko. Other expected big earnings gainers early in the week include Forest Oil Corp. (NYSE: FST), Pioneer Natural Resources Co. (NYSE: PXD), Comstock Resources Inc. (NYSE: CRK), and MasterCard Inc. (NYSE: MA). The earnings of phosphates producer Innophos Holdings Inc. (NASDAQ: IPHS) are expected to have risen 92.3% to $3.37 per share. Innophos beat estimates in the previous quarter by a whopping 210%, and analysts have been impressed with Innophos's lack of debt and pricing gains despite the slowing economy, so, on average, they recommend buying IPHS.

Also early in the week, analysts expect Goodyear Tire & Rubber Co. (NYSE: GT), Kaiser Aluminum Corp. (NASDAQ: KALU), and Oshkosh Corp. (NYSE: OSK) to report that their profits fell 52.9% to $0.33 per share, 45.1% to $0.67 per share, and 41.2% to $0.67 per share, respectively. These companies have tended to beat estimates in recent quarters, and the consensus recommendations of analysts are to buy them. However, PMI Group Inc. (NYSE: PMI), one of the largest private mortgage insurance providers in the U.S., is expected to take another hit as the housing slump drags on. The California-based company is expected to have widened its net loss from $1.04 per share a year ago to $2.43 per share in the most recent quarter. Its shares are down 84.5% from a year ago, and have been trading recently near their 52-week low.

MOST NOTEWORTHY: P.F. Chang's, ViroPharma and CSX Corp were today's noteworthy upgrades:

• Jefferies upgraded shares of P.F. Chang's (NASDAQ: PFCB) to Buy from Hold to reflect the company's capital preservation focus, which they believe will drive a best-in-class free cash flow yield in 2009. Despite upgrading shares, Jefferies lowered their target price to $28 from $31.
  
• Thomas Weisel raised ViroPharma (NASDAQ: VPHM) to Overweight from Market Weight on valuation as they believe the sell-off on the Lev Pharmaceuticals (LEVP) acquisition is unwarranted. The firm raised their target price to $15 from $10.
  
• Merrill upgraded CSX Corp. (NYSE: CSX) to Buy from Neutral based on valuation and improved results.

OTHER UPGRADES:

• Borg-Warner (NYSE: BWA) was upgraded to Outperform from Neutral at Baird.
  
• Credit Suiise raised Walgreen (NYSE: WAG) to Outperform from Neutral.
  
• SunTrust upgraded Arena Resources (NYSE: ARD), Bill Barrett (NYSE: BBG) and Concho Resources (NYSE: CXO) to Buy from Neutral.

MOST NOTEWORTHY: Golar LNG, Yingli Green Energy and Bill Barrett were today's noteworthy downgrades:

• Jefferies downgraded shares of Golar LNG (NASDAQ: GLNG) to Hold from Buy on valuation, as they see limited upside over the next 12 months.
  
• Banc of America downgraded shares of Yingli Green Energy (NYSE: YGE) to Neutral from Buy on difficult fundamentals, as they believe solar industry gross margins will continue to contract due to silicon competition and decelerating demand in Spain and Germany.
  
• SunTrust lowered Bill Barrett Corporation (NYSE: BBG) to Neutral from Buy based on valuation and lack of near-term exploration catalysts.

OTHER DOWNGRADES:

• Autodesk (NASDAQ: ADSK) was lowered to Accumulate from Buy at ThinkEquity.
  
• Goldman removed Oneok (NYSE: OKE) from its Conviction Buy List.
  
• Merrill Lynch downgraded Boardwalk Pipeline Partners (NYSE: BWP) to Sell from Buy.

MOST NOTEWORTHY: Double Hull Tankers, Comverge and Cardica were today's noteworthy initiations:

• Double Hull Tankers (NYSE: DHT) was initiated with a Buy rating and $20 target at Jefferies, as they believe shares are attractively valued given the company's time charter contract coverage and upside potential through profit sharing arrangement.
• Broadpoint views Comverge (NASDAQ: COMV) as the industry leader in the high-growth demand response market. The firm assumed coverage with a Buy rating.
• Oppenheimer expects Cardica's (NASDAQ: CRDC) proximal device, which is awaiting FDA approval, to change cardiothoracic surgery and that adoption should be rapid. The firm initiated shares with a Buy rating and $11 target.

OTHER INITIATIONS:

• Bear Stearns started Brady Corp (NYSE: BRC) with a Neutral rating and $40 target.
• Bill Barrett (NYSE: BBG) was initiated with a Market Perform rating and Morgan Keegan.
• William Blair initiated LKQ (NASDAQ: LKQX) with a Market Perform rating.

It's always a bit risky to invest in a young oil or natural gas company -- exploration costs can be quite high, for uncertain reward -- but Bill Barrett Corporation (NYSE: BBG) is one you can trust if you buy at the right price.

The company is engaged in drilling in the Rockies, widely seen as one of the areas with the greatest potential for substantial natural gas resources. In addition to its potentially lucrative natural gas supplies, the Rockies are also in the United States, which limits some of the risk for a company like BBG.

To be sure, there are always risks. Beyond the uncertainty of exploration, natural gas companies always have to contend with environmental regulation, and the price can also vary quite significantly, which could greatly dampen profits. But these are industry-wide concerns, and if you're comfortable investing in this industry, BBG could be a good bet for you. A report this week by Bank of Montréal's analyst team raised its 2008 production estimate by 14%, and came up with a new target price of $46. If this report is right, you could realize a gain of about 30%.

This is only a stock for investors who can handle some risk for high potential gains -- if you're comfortable getting into this business, I think a young company like BBG could repay your confidence quite handsomely.

Type of Stock: A relatively young natural gas company doing most of its exploration in the Rockies. Basically, this is a way to bet on natural gas.

Price Target: BBG has lost a bit of ground and is currently trading in the mid $30s, a few dollars off its 52-week high. I'd feel more comfortable in the low $30s on this one. The stock tends to have periodic dips, so you might wait for one of those and grab it if you can handle the risk.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com.

On today's STOP TRADING segment on CNBC, Jim Cramer said the market is acting like it is immune to falling. Even subprime lenders, First Horizon National Corp. (NYSE:FHN) and Countrywide Financial Corp. (NYSE:CFC) are rising without a deal yet.

Cramer again talked about Illinois Tool Works Inc. (NYSE:ITW) and the Black & Decker Corp. (NYSE:BDK) showing and that the fact it is happening ahead of the Fed announcement tomorrow is a good indicator.

On natural gas being up 11% and crude up 8%, Cramer agreed with SunTrust's call to be in natural gas. SunTrust's picks are ATPG, BBG, BEXP, CHK, EOP, EPEX, ROSE. The one Cramer noted as the play in the area if you are a true believer is Grey Wolf Inc. (NYSE:GW).