Analyst upgrades:

• FBR Capital upgraded AutoZone (NYSE: AZO) to Market Perform from Underperform on valuation following the company's Q4 results but lowered its target on shares to $134 from $137.
• Citigroup upgraded Calpine (NYSE: CPN) to Buy from Hold on valuation following Wednesday's sell-off. The firm believes Harbinger's share sale reflects an issue with the shareholders, not with the company, and raised its price target on the stock to $16.50 from $13.
• Credit Suisse upgraded Knight Transportation (NYSE: KNX) to Neutral from Underperform and raised its target to $17 from $16 based on valuation and the improved freight environment.
• Citrix Systems (NASDAQ: CTXS) was upgraded to Conviction Buy from Buy at Goldman.
• Webster Financial (NYSE: WBS) was upgraded to Outperform from Sector Perform at RBC Capital.
• Dr. Reddy's Labs (NYSE: RDY) was upgraded to Overweight from Equal Weight at Morgan Stanley.

Analyst upgrades:

• Wells Fargo transferred coverage of Cooper Industries (NYSE: CBE) with an Outperform rating, upgraded from the previous analysts' Market Perform rating. The firm believes commercial construction will be of less of a headwind for the company than the Street thinks, and has a $38-$41 valuation range on the stock.
• Kaufman Bros. upgraded SuccessFactors (NASDAQ: SFSF) to Buy from Hold after channel checks indicated demand trends picked up in July. The firm raised its target on shares to $15 from $12.
• UBS upgraded eBay (NASDAQ: EBAY) to Buy from Neutral and believes Marketplace transaction growth is "turning the corner." Additionally, the firm believes the secondary market represents a long-term opportunity for the company. The firm raised its target to $28 from $24.
• Novartis (NYSE: NVS) was upgraded to Buy from Hold at Jefferies.
• Arcelor Mittal (NYSE: MT) was upgraded to Buy from Hold at Citigroup.
• Cardinal Health (NYSE: CAH) was upgraded to Buy from Neutral at Goldman.
• Yahoo! (NASDAQ: YHOO) was upgraded to Outperform from Market Perform AMC Monday at Bernstein.

Analyst upgrades:

• Citigroup upgraded Talbots (NYSE: TLB) to Buy from Hold on expectations the company's sales and margins are at an inflection point. The firm expects comps to turn positive in the next six months and raised its target on shares to $9.50 from $5.
• JMP Securities believes that Apple's (NASDAQ: AAPL) incoming iPod product cycle, geographic expansion of iPhones, and market expansion led by new products will result in "significant" outperformance. The firm upgraded shares to Outperform from Market Perform and has a $200 target on the stock.
• Credit Suisse upgraded Tiffany (NYSE: TIF) to Outperform from Neutral citing productivity comps and gross margin upside, leading to potential upside to 2010 Street estimates. The firm raised its target to $45 from $20.
• Brady (NYSE: BRC) was upgraded to Buy from Hold at KeyBanc.
• Time Warner (NYSE: TWX) was upgraded to Conviction Buy from Neutral at Goldman.
• RadioShack (NYSE: RSH) was upgraded to Overweight from Equal Weight at Morgan Stanley.

It's a difficult call, but I'm Reiterating my Buy rating for Cardinal Health (NYSE: CAH), first recommended on April 21, 2009 at a price of $33.52.

Cardinal Health has meandered since April, despite generally favorable investor reviews of CAH's plan to spin-off its clinical medical products segment in mid-2009, to be called CareFusion Corp., allowing Cardinal to focus on revitalizing its health care supply chain services business, which recently returned to profitability.

Analyst upgrades:

• Keefe Bruyette upgraded BB&T (NYSE: BBT) to Market Perform from Underperform as it believes downside risk has been reduced following the company's capital raise. The firm raised its target price to $23 from $15.
  
• Janney Montgomery upgraded FEI Company (NASDAQ: FEIC) to Buy from Neutral on expectations margins will improve and various country stimulus packages will provide benefits in 2010. The firm has a $31 target on the stock.
  
• Citigroup upgraded Tyco Electronics (NYSE: TEL) to Buy from Hold as it believes automotive headwinds are priced in and the company's long-term fundamentals are intact. The firm raised its target price to $25 from $19.
• Barrick Gold (NYSE: ABX) was upgraded to Outperform from Sector Perform at RBC Capital.
  
• J.B. Hunt (NYSE: JBHT) was raised to Overweight from Equal Weight at Stephens.
  
• Roper Industries (NYSE: ROP) was upgraded at Oppenheimer to Outperform from Perform.

Analyst upgrades:

• Morgan Stanley upgraded Chesapeake Energy (NYSE: CHK) to Overweight from Equal Weight as they expect the company to benefit from higher natural gas prices in 2010. The firm has a $34 target on shares.
• Citigroup upgraded Energy Conversion (NASDAQ: ENER) to Hold from Sell on valuation is it finds the risk/reward balanced at current levels. The firm raised its target price to $16 from $13.
• Jefferies upgraded Lifetime Brands (NASDAQ: LCUT) to Buy from Underperform to reflect reduced liquidity concerns and an improved outlook for Global Direct Sellers. The firm raised its target price to $4 from $2.
• American Eagle (NYSE: AEO) was upgraded to Overweight from Equal Weight at Barclays.
• TJX Companies (NYSE: TJX) was upgraded at Barclays to Overweight from Equal Weight and to Outperform from Netural at Credit Suisse.
• STEC Inc (NASDAQ: STEC) was raised to Overweight from Market Weight at Thomas Weisel.

It goes without saying that this market remains a stock picker's market. Select the wrong stock, and there's a 30-40% haircut up ahead; select the correct stock, and you're positioned for the recovery with modest downside exposure. For a chance at the latter, consider Cardinal Health (NYSE: CAH).

In general, analysts view CAH's filing to spin-off its clinical medical products segment in mid-2009 as allowing Cardinal to focus on revitalizing its health care supply chain services business, which recently returned to profitability.

Hansen Medical (NASDAQ: HNSN) said economic conditions have led to lower than expected Q4 sales. HNSN, a developer of products for robotic catheter-based technologies, closed at $6.26. Thomas Weisel Partners has a $8 price target on HNSN. HNSN February call option implied volatility is at 115, puts are at 133, above its 26-week average of 69, according to Track Data, suggesting larger price movement.

Cardinal Health (NYSE: CAH), a drug wholesaler and medical-equipment supplier, lowered its full-year outlook on January 8 because it sees reduced hospital spending. Smith Barney has a 12-month price target of $39 on CAH. February option implied volatility of 49 is above its 26-week average of 41 according to Track Data, suggesting larger price movement.

Becton Dickinson (NYSE: BDX), a medical technology company, closed at $69.11. Morgan Stanley raised its rating on BDX to Overweight. BDX February option implied volatility of 38 is above its 26-week average of 33, according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"Should Obama win the election, we would look towards select sub-sectors of health care; one stock we would expect to benefit is health supply distributor, Cardinal Health (NYSE: CAH)," explains Kelley Wright, editor of the blue chip Investment Quality Trends.

"A President Obama will have to make good on his promise to deliver better health care. While this could create havoc for the pharmaceutical producers, drug therapies and medical supplies will have to be delivered.

"The 800lb. gorilla in the supply and distribution space is Cardinal Health. Cardinal is a global company whose distribution businesses consolidate pharmaceuticals and medical products from thousands of manufacturers into site-specific deliveries to retail pharmacies, hospitals, physician's offices, surgery centers and alternate care facilities.

"The company has recently taken steps to increase the percentage of cash flow into dividends and share repurchases to enhance shareholder value.

"The blue chip stocks that we recommend are chosen for the exemplary long-term dividend growth, a P/E ratio of 15 or less, a payout ratio of 50% or less, debt of 50% or less, and technical characteristics on the daily and weekly charts that suggests the potential for imminent capital appreciation.

"While the current dividend yield on Cardinal Health is comparatively low at around 1.0%, the upside potential for capital appreciation is quite large."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

Which stocks would benefit from a victory by either Senator John McCain or Senator Barack Obama? To help investors sort through the sectors and stocks best positioned to benefit in a post-election environment, we posed this question to some of the nation's leading financial newsletter advisors.

Importantly, this is not a partisan report; each participating advisor has provided a favorite stock for both candidates, focused not on political preferences but unbiased stock analysis. Below we feature those stocks and ETFs that the advisors believe will be the winners depending on which candidate prevails.

McCain Stocks:

Roger Conrad - Comcast (NYSE: CCW)
Gregg Early - Elbit Systems (NASDAQ: ESLT)
Elliott Gue - Paladin Resources (Toronto: PDN)
Doug Fabian - Market Vectors Nuclear Energy (NYSE: NLR)
Vivian Lewis - Barclays (NYSE: BCS)
Bill Martin - CGG Veritas (NYSE: CGV)'
Yiannis Mostrous - Lonking Holdings (OTC: CIMHF)
Carla Pasternak - Eaton Vance Tax-Advantaged Dividend Income Fund (NYSE: EVT)
Nate Pile - SPDR Gold Trust (NYSE: GLD)
John Reese - General Dynamics (NYSE: GD)
Nathan Slaughter - USEC (NYSE: USU)
Paul Tracy - Shaw Group (NYSE: SGR)
Kelley Wright - CenturyTel (NYSE: CTL)
Tom Vass - Molex (NASDAQ: MOLX)
Martin Hutchinson - Northrop Grumman (NYSE: NOC), Merck & Co. (NYSE: MRK), EOG Resources (NYSE: EOG)

Obama Stocks:

Roger Conrad - SunPower (NASDAQ: SPWR)
Gregg Early - AeroVironment (NASDAQ: AVAV)
Elliott Gue - SunPower (NASDAQ: SPWR)
Doug Fabian - Industrial Select Sector SPDR (NYSE: XLI)
Vivian Lewis - Cosan (NYSE: CZZ)
Bill Martin - Geron (NASDAQ: GERN)
Yiannis Mostrous - Dr. Reddy's (NYSE: RDY)
Carla Pasternak - Kinder Morgan Energy Partners (NYSE: KMP)
Nate Pile - Apple (NASDAQ: AAPL)
John Reese - American Eagle (NYSE: AEO)
Nathan Slaughter - Fluor (NYSE: FLR)
Paul Tracy - Market Vectors Global Alternative Energy (NYSE: GEX)
Kelley Wright - Cardinal Health (NYSE: CAH)
Tom Vass - Ingersoll Rand (NYSE: IR)
Martin Hutchinson - Microsoft (NASDAQ: MSFT), Time Warner Inc. (NYSE: TWX), First Solar (NASDAQ: FSLR)

For the first time Monday I heard John McCain comparing Barack Obama to Jimmy Carter. I had heard this before in other arenas, but not from McCain. I guess that despite these two presidential candidates pledging to the American people to bring change and resist politics as usual, they are both, as usual as one could get.

Obama is being shaped by the pressures of running for office and to believe otherwise is delusional. I suppose one has to have hope but the effects of the campaign are becoming clear. Obama has been painting McCain as an extension of Bush, which is nonsense, and now in a typical tit-for-tat response, McCain is filling the air with Carter references.

Both McCain and Obama are wrong in their assessments of their opponents and they are becoming commoners to resort to the bottom of the barrel campaign techniques used in every campaign for most of our nation's proud history. Obama gave up the high ground too easily and McCain has decided he can sling mud with the best of them.

MOST NOTEWORTHY: WuXi Pharma, ExxonMobil and LifePoint Hospitals were today's noteworthy upgrades:

• Jefferies upgraded shares of WuXi Pharma (NYSE: WX) to Buy from Hold as they believe the risk/reward is much improved following the recent weakness. They think the company's 2008 guidance is achievable.
  
• Credit Suisse raised ExxonMobil (NYSE: XOM) to Outperform from Neutral as they believe the rise in crude oil means analyst estimates are too low.
  
• Goldman sees upside to hospital stocks given low valuations and expectations. The firm upgraded LifePoint Hospitals (NASDAQ: LPNT) to Buy from Neutral and named it a top pick along with previous top pick Cardinal Health (NYSE: CAH).

OTHER UPGRADES:

• Goldman added NDS Group (NASDAQ: NNDS) to their Conviction Buy List and upgraded shares to Buy from Neutral.
  
• Morgan Stanley raised Boeing (NYSE: BA) to Overweight from Equal Weight.
  
• JP Morgan added Sherwin-Williams (NYSE: SHW) to the Focus List.

MOST NOTEWORTHY: DiamondRock Hospitality, Pzena Investment and Vodafone were today's noteworthy upgrades:

• DiamondRock Hospitality (NYSE: DRH) was upgraded to Outperform from Neutral at Baird, citing the newly-announced 4.8M repurchase plan, strong balance sheet and valuation.
  
• Keefe Bruyette upgraded shares of Pzena Investment (NYSE: PZN) to Market Perform from Underperform after the company announced February ending AUM.
  
• Goldman added Vodafone (NYSE: VOD) to its Conviction Buy List following the recent weakness as they expect the company to benefit from growth in wireless data.

OTHER UPGRADES:

• UBS raised Weyerhaeuser (NYSE: WY) to Buy from Neutral.
  
• Credit Suisse upgraded MedCath (NASDAQ: MDTH) and Lululemon (NASDAQ: LULU) to Outperform from Neutral.
  
• Goldman added Cardinal Health (NYSE: CAH) to its Conviction Buy List.

MOST NOTEWORTHY: Washington Post, Harvest Natural, Memc Electronic Materials and Boston Private Financial were today's noteworthy upgrades:

• Deutsche Bank upgraded shares of The Washington Post Company (NYSE: WPO to Buy from Hold to reflect the company's exposure to the counter-cyclical education division.
• Jefferies upgraded shares of Harvest Natural Resources Inc. (NYSE: HNR) to Buy from Hold and raised their target to $17 from $11 after the company received final approval in the conversion to a mixed company. They note that conversion clears the way for renewed investment.
• Friedman Billings added Memc Electronic Materials Inc (NYSE: WFR) to its Top Picks List following its Q3 report and guidance as "solar wafer contracts," not including spot poly, are expected to increase from 15% of the total to 35%-40% in CY08 and greater than 50% in CY09.
• William Blair raised its rating on Boston Private Financial Holdings Inc (NASDAQ: BPFH) to Outperform from Market Perform after the better-than-expected Q3 results.

OTHER UPGRADES:

• Goldman added Dell Inc (NASDAQ: DELL) to its Conviction Buy List.
• NTT DoCoMo Inc (NYSE: DCM) was upgraded to Hold from Sell at Citigroup and to Buy from Neutral at UBS.
• Credit Suisse upgraded Cardinal Health Incorporated (NYSE: CAH) to Outperform from Neutral.
• Merrill upgraded Coca-Cola Femsa SA (NYSE: KOF) and Northeast Utilities (NYSE: NU) to Buy from Neutral.

MOST NOTEWORTHY: CyberSource, Century Casinos, Spectrum Pharm and Winnebago were today's noteworthy upgrades:

• JMP Securities upgraded shares of CyberSource (NASDAQ: CYBS) to Market Outperform from Market Perform citing valuation, positive management comments regarding BidPay, and incrementally positive industry checks on its fraud product.
  
• Brean Murray upgraded shares of Century Casinos (NASDAQ: CNTY) to Buy from Hold based on continued progress at recently opened properties, reduced Street expectations, and potential catalysts.
  
• Brean Murray also upgraded Spectrum Pharmaceuticals (NASDAQ: SPPI) to Buy from Hold. The firm is highly confident that Spectrum's ozarelix will demonstrate similar efficacy and safety in the current U.S. Phase IIb trial and expects statistical significant. The firm expects Ph III initiations by year-end 2007 and Ph IIb data to be released on 2Q08.
  
• Winnebago Industries (NYSE: WGO) was upgraded to Outperform from Sector Perform at RBC Capital. The firm expects Winnebago to begin to post better earnings from more favorable mix and pricing in the 2008 model year.

OTHER UPGRADES:

• Merrill Lynch upgraded Cardinal Health (NYSE: CAH) to Buy from Neutral.
  
• Goldman upgraded shares of US Airways (NYSE: LCC) to Buy from Neutral.
  
• Avocent Corporation (NASDAQ: AVCT) was upgraded to Accumulate from Source the Funds at Think Equities.
  
• Collins Stewart raised Cyberonics (NASDAQ: CYBX) to Buy from Market Perform.