Analyst upgrades:

• KeyBanc upgraded Epicor (NASDAQ: EPIC) to Buy from Hold based on several near-term catalysts that include possible convertible debt repurchases, reasonable Q4 results, a proxy fight, and a boost from the Epicor 9 product cycle in 2H09.
  
• KeyBanc also upgraded AK Steel (NYSE: AKS) to Buy from Hold based on relative valuation and said the company could benefit from lower iron ore, scrap natural gas, and labor inputs.
  
• JP Morgan upgraded Lennar (NYSE: LEN) to Overweight from Neutral based on relative valuation.
• Marriott (NYSE: MAR) was upgraded to Buy from Neutral at Goldman.
  
• Raymond James (NYSE: RJF) was raised to Market Perform from Underperform at Wachovia.
  
• Deere (NYSE: DE) was upgraded to Outperform from Market Perform at Bernstein.

Analyst downgrades:

This week started with a positive momentum as the auto industry bailout seemed to have a chance of passing, and President-elect Obama announced a huge stimulus plan, including infrastructure investment that could boost the weak job market.

For a few days, things seemed like they were almost back to normal. Until Thursday -- when the Senate failed to pass the bailout. This was aggravated by news of the ex-Nasdaq chair being accused of a massive $50 billion 'Ponzi scheme,' and economic indicators that actually were not as bad as expected.

Still, if the automakers manage to get assistance from somewhere else, we might see some sort of stabilization. If that happens, some investors may choose this time to return to the market. This week's theme among BloggingStocks contributors seemed to revolve not just around 'cheap' but also on yield. Competent management also plays a bigger role these days when picking stocks.

Here are some picks from this week:

Jim Cramer took a hard look at these high yielders: Dow Chemical (NYSE: DOW), General Electric (NYSE: GE), Du Pont (NYSE: DD) and Intel (NASDAQ: INTC). He cautions against jumping in without considering "which companies have gone into survival mode to get there? Which companies will even make you money if they cut the dividend?"

President-elect Barack Obama plans to offer a $900 billion infrastructure investment plan, according to an economic adviser. Three companies are among the beneficiaries of that plan. And it might be worth looking at them as investments.

The advisor, James Galbraith, recommends spending of more than $900 billion to rewire classrooms and libraries for high-speed Internet service and repair bridges and highways. And the companies that would benefit from this spending are high tech: General Electric (NYSE: GE) -- thanks to its Ecomagination program, Cisco Systems (NASDAQ: CSCO) which makes communication infrastructure gear and Emcor Group (NYSE: EME) which makes systems for voice and data, electrical power and lighting.

GE could get orders for its green products. It spends $1.4 billion a year to develop energy-efficient products such as locomotives, jet engines and power-plant equipment, including wind turbines and solar power. It might also benefit from water treatment, lighting efficiency, "smart grid" electrical distribution and health-care information systems. Cisco stock rose 8.2% on the Nasdaq yesterday -- more than twice the average increase -- due to the perception that it will benefit from this infrastructure plan.

Let's hope Obama's infrastructure plan meets the high expectations built into these stock price increases.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He owns GE stock and has no financial interest in the other securities mentioned.

EMCOR Group (NYSE: EME) plans, installs, operates and maintains the systems that create facility environments. These include installations for power generation, power distribution, lighting, security, communications, plumbing, waste treatment, heating, ventilation, refrigeration and air-conditioning. The firm also provides facilities management and maintenance support. It serves commercial, industrial and institutional clients such as Bristol-Myers Squibb (NYSE: BMY) and Wachovia Corporation (NYSE: WB). Johnson Controls (NYSE: JCI) is a major competitor.

The Street was surprised last week, when EMCOR guided FY08 EPS from $2.08-$2.28 to $2.22-$2.42 and FY08 revenues from $6.3-$6.5 billion to $6.8-$7.0 billion. Analysts had been looking for $2.31 and $6.76 billion. The CEO cited "solid order activity" and a "strong contract backlog" for the favorable view.

Construction tends to be a local business, but a limited number of firms have managed to establish international reputations. One of them employs some 27,000 skilled workers and operates locally from 140 locations worldwide.

EMCOR Group (NYSE: EME) plans, installs, operates and maintains the systems that create facility environments. These include installations for power generation, power distribution, lighting, security, communications, plumbing, waste treatment, heating, ventilation, refrigeration and air-conditioning. The firm also provides facilities management and maintenance support. It serves commercial, industrial and institutional clients such as Bristol-Myers Squibb (NYSE: BMY), Wachovia Corporation (NYSE: WB) and the U.S. Senate. Johnson Controls (NYSE: JCI) is a major competitor.

The Street was surprised last week, when EMCOR reported Q3 EPS of 55 cents and revenues of $1.5 billion. Analysts had been looking for 47 cents and $1.44 billion. Management also guided FY07 EPS to $1.75-$1.80 ($1.58 consensus) and FY07 revenues to $5.8 billion ($5.71 billion consensus). Morgan Joseph and Friedman Billings subsequently reiterated "buy" recommendations and boosted their price targets to the $44.00-$45.50 range. The share price popped on the earnings news and then moved into a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Construction tends to be a business conducted by local outfits, but a limited number of firms have managed to establish international reputations. One of them is headquartered in Norwalk, Connecticut.

Emcor Group (NYSE: EME) is a leader in mechanical and electrical construction, energy infrastructure, and facilities services. It installs, operates and maintains electrical, mechanical, lighting, air conditioning, heating, communications, plumbing, security and power generation systems for a diverse range of businesses and government entities. The firm employs some 27,000 skilled workers, operating locally from 140 locations worldwide. Clients include Bristol-Myers Squibb (NYSE: BMY), Wachovia Corporation (NYSE: WB) and the U.S. Senate. Johnson Controls (NYSE: JCI) is a major competitor.

The company pleased investors earlier in the week, when it boosted FY07 EPS guidance from $2.45-$2.80 to $2.75-$3.00 ($2.86 Street consensus) and raised FY07 revenue guidance from $5.3-$5.5 billion to $5.5-$5.7 billion ($5.6B consensus). Management said the improved figures reflected continuing indications of strong demand patterns within many of the firm's markets. Emcor also declared a 2-for-1 stock split, payable July 9th. Friedman Billings subsequently reiterated its "outperform" rating on the issue. The stock popped above 30-day/50-day moving average support into a bullish "pennant" consolidation pattern on the news. Prices frequently exit pennants 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" and three "holds." Analysts expect a 21% growth rate, through the next year. The EME Price to Sales ratio (0.43), Price to Book ratio (3.10), Price to Free Cash Flow ratio (10.68), Sales Growth rate (14.51%), EPS Growth rate (50.00%) and Return on Investment (11.01%) compare favorably with industry, sector and S&P 500 averages.

Institutional investors hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 600 Small Cap Index. Over the past fifty-two weeks, it has traded between $42.45 and $71.78. A stop-loss of $62.50 looks good here. Note that the firm is next expected to report quarterly results in late July.

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