Analyst Upgrades

• Ryder (R) to outperform from sector perform at RBC Capital.
• HCP (HCP) to outperform from neutral at RW Baird.
• Hertz Global (HTZ) to overweight from equal weight at Barclays.
• Lincoln National (LNC) to buy from neutral and T. Rowe Price (TROW) to conviction buy from neutral at Goldman.
• Protective Life (PL) and Janus Capital (JNS) to neutral from sell at Goldman.
• Newell Rubbermaid (NWL) to overweight from equal weight at Morgan Stanley.
• National Instruments (NATI) to overweight from neutral at JPMorgan.
• Team Health (TMH) to buy from hold at Deutsche Bank.

U.S. stock futures advanced Monday morning, as investors seemingly ready to continue to drive stocks higher after reaching a 19-month high Friday. Strong earnings season, made stronger with this morning's Caterpillar report have been a key driver in the past couple of weeks. In addition, as the Greece bailout moves forward and economic indications continue to point to recovery, investors gain confidence.

There are no major economic reports due Monday, but the week is full of key readings such as GDP, consumer confidence and jobless claims. Also, the Federal Reserve Open Market Committee is meeting to discuss monetary policy, including interest rates. The two-day meeting will conclude on Wednesday.

Yesterday, several of America's largest and most well-know companies cut people at an alarming rate. The liquidation of Circuit City could put a total of 30,000 employees onto the street. Pfizer (NYSE: PFE) cut 2,400 sales people. AMD (NYSE: AMD) cut more than 1,000 people. Hertz (NYSE: HTZ) said it will let 4,000 people go, and Wellpoint (NYSE: WLP) will fire more than 1,000 people.

Bloomberg reported that GE (NYSE: GE) might fire up to 11,000 people in its financial unit.

So, in one day, as many as 60,000 people were out of work. A look at the activity shows why it will be so hard to arrest the drop in jobs. The companies involved in downsizing yesterday range from big pharma to transportation to tech to retail. The 24 hours were, in essence, a cross-section of the entire American economy suffering under the weight of the recession.

Economists say there cannot be a recovery with a reversal of the fall in unemployment. Unfortunately, addressing the cause of joblessness is has moved well beyond saving the retail industry and Detroit. Industry by industry, the entire system has become diseased.

Douglas A. McIntyre is an editor at 247wallst.com.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"My top pick for 2009, Hertz Global Holdings (NYSE: HTZ) is a very contrarian idea in one of the most beaten down sectors," states Glenn Cutler.

In his Stock Market Blog and Special Situations Report, the advisor says, "Hertz Global -- the world's largest car rental brand -- has over 8,000 locations in 144 countries.

"They are #1 at airports with corporate and licensee locations in North America, Europe, Latin America, Australia, and New Zealand and additional licensee operations in cities and airports in Africa, Asia, and the Middle East.

"Through Hertz Equipment Rental Corporation unit, the company operates one of the largest equipment rental businesses for a diverse line of customers ranging from major industrial companies to local contractors to consumers with over 350 branch locations in the U.S., Canada, China, France, and Spain.

A couple of weeks ago, Carol Vinzant noted that Hertz (NYSE: HTZ) had stopped its practice of gouging customers for gas fill-ups. Rather than charge exorbitant prices for gas, the renter instead chose the market rate, merely tacking on a $7 surcharge for the cost of paying somebody to fill up. While Hertz claimed that this was a voluntary decision, it coincided suspiciously with the Maryland Attorney General's threat to sue large rental firms for their exorbitant gas charges.

Whether Hertz is trying to find ways to offset their gas losses or is just trying to generate a little extra income in what are becoming hard times for the rental industry, their latest revenue stream is pretty smart: they're renting out ad space in their rental fleet. In addition to printing ads on ticket jackets and hang tags, the company is planning to utilize printed trunk liners and will also be offering free samples to customers. This, of course, follows the lead set by some airlines, which have begun plastering ads atop everything that doesn't move.

Hertz is hoping that its advertising strategy will help offset losses that it has incurred as high gas prices have caused customers to cancel trips, severely undercutting the rental industry. These days, anything that helps keep prices down and service up seems like a burst of genius!

MOST NOTEWORTHY: Progressive, Netflix and Public Service Enterprise Group were today's noteworthy upgrades:

• Wachovia upgraded Progressive (NYSE: PGR) to Market Perform from Underperform based on modest signs of improvement in underwriting trends.
  
• Lehman upgraded Netflix (NASDAQ: NFLX) to Overweight from Equal Weight based on strong core trends and a potential announcement of digital service partners into its May 28 investor day.
  
• Credit Suisse upgraded Public Service Enterprise Group (NYSE: PEG) to Outperform from Neutral based on earnings growth through utility investment, valuation, upside from U.S. CO2 policy.

OTHER UPGRADES:

• Precision Drilling (NYSE: PDS) was raised to Outperform from Sector Perform at RBC Capital.
  
• Hertz Global (NYSE: HTZ) was upgraded at Soleil to Buy from Hold.
  
• Calyon upgraded Foundation Coal (NYSE: FCL) and Arch Coal (ACI) to Add from Neutral.

While Scotts Miracle Gro Co. (NYSE: SMG) Monday blamed a slow start to spring and recalls for a drop in second-quarter profits, Pilgrims Pride Corp. (NYSE: PPC) said its second-quarter loss widened due to rising feed costs and a restructuring charge. And analysts expect lower consumer spending on leisure travel and a drop in business travel to drag on Avis Budget Group Inc. (NYSE: CAR) first-quarter results when it reports on Tuesday.

Discounting charges, Marysville, Ohio-based Scotts reported it made $77.7 million, or $1.19 per share for the quarter ended March 29, two cents better than the forecast of analysts surveyed by Thomson Financial. Revenue fell 4% to $958 million. The company also warned that profits would likely fall below Wall Street forecasts for the year.

Pilgrim's Pride, the nation's largest chicken producer, lost $111.5 million, or $1.67 per share, in the three months ended March 29 compared with a loss of $40.1 million, or 60 cents per share, a year earlier. Revenue rose to $2.10 billion. Analysts had expected a loss of 81 cents per share on $2.09 billion in sales. The company said feed costs would probably push the company to another loss in the current quarter as well.

Analysts expect Parsippany, New Jersey-based Avis to break even on a per share basis, on $1.37 billion revenue. In last year's first quarter, the company posted profit of 12 cents per share. It's unclear how much of an effect the current economic conditions will have on Avis's full-year 2008 results, but in April, rival Hertz Global Holdings Inc. (NYSE: HTZ) managed to post an adjusted quarterly profit that beat Wall Street predictions.

Shares of Scotts ended the day up 1.2%, but fell nearly 12% in after-hours trading to $30.00. Pilgrim's Pride fell less than 1% during the day, then another 1.1% after hours to $23.59. Avis also continued its slide into after-hours trading, down to $13.49.

MOST NOTEWORTHY: Yahoo!, Cigna and Aegean Marine were today's noteworthy upgrades:

• Citigroup upgraded shares of Yahoo! (NASDAQ: YHOO) to Buy from Hold as they believe Microsoft (NASDAQ: MSFT) is unlikely to walk away from Yahoo! and that there is potential Microsoft could bid $34/share.
  
• Credit Suisse upgraded Cigna (NYSE: CI) to Outperform from Neutral citing the company's favorable business mix.
  
• Stephens upgraded shares of Aegean Marine (NYSE: ANW) to Overweight from Equal Weight on valuation as they see an attractive entry point at current levels.

OTHER UPGRADES:

• JMP Securities raised D.R. Horton (NYSE: DHI) to Strong Buy from Outperform and Pulte Homes (NYSE: PHM) to Outperform from Market Perform.
  
• Goldman added Hertz Global (NYSE: HTZ) and Electronic Arts (NASDAQ: ERTS) to its Conviction Buy List.

Merrill Lynch cut shares of Citigroup (NYSE: C), Wachovia (NYSE: WB), and JP Morgan (NYSE: JPM) from "hold" to "sell." The report indicated a consumer recession and more write-offs would hurt the banks, according to MarketWatch.

Morgan Stanley cut Boeing (NYSE: BA) to "equal weight" from "overweight." Concerns over the launch of the 787 were given as the reason.

Hertz (NYSE: HTZ) was downgraded at Bank of America going from "buy" to "neutral" and with a price target falling from $27 to $20. The move was made based on "earnings sensitivity from a decline in used vehicle and equipment prices," according to Briefing.com.

Douglas A. McIntyre is an editor at 247wallst.com.

Lots more quarterly reports rolled out this past week, and here are some highlights of earnings coverage from BloggingStocks:

• Alcatel-Lucent (NYSE: ALU) reported more losses and more job cuts.
• Alvarion Ltd.'s (NASDAQ: ALVR) record quarter fuels speculation of a Cisco (NYSE: CSCO) buyout.
• Avon Products Inc.'s (NYSE: AVP) profit rose 61%, buoyed by strength in emerging markets.
• Chevron Corp. (NYSE: CVX) fell short of expectations due to tighter margins.
• CIGNA Corp. (NYSE: CI) had a solid quarter but warned about 2008 earnings.
• Clorox Co. (NYSE: CLX) blamed profit loss on materals costs, and announced acquistion of Burt's Bees.
• Colgate-Palmolive Co. (NYSE: CL) beat estimates by a penny and had strong sales overseas.
• Crocs Inc. (NASDAQ: CROX) beat earnings estimates and revised its full-year forecast.
• Dell Inc. (NASDAQ: DELL) announced it would restate revenues, ahead of its November quarterly report.
• Exxon Mobil Corp. (NYSE: XOM) missed expectations, also due to tighter margins.
• Given Imaging Ltd. (NASDAQ: GIVN) cited FDA approval delays for disappointing results.
• Hertz Global Holdings Inc. (NYSE: HTZ) posted record revenues and appointed a new CFO.
• Humana Inc.'s (NYSE: HUM) positive surprise lifted the share price to a new all-time high.

Worldwide car and equipment rental company Hertz Global Holdings, Inc. (NYSE: HTZ) posted record 3Q revenues and named Elyse Douglas as its new CFO. Not bad for a day's work. Unfortunately, such good news does not seem to have helped the stock, which dropped almost 7% of its value today, closing at $21.40, down $1.58. Despite the good 3Q numbers, continued weak demand for rental equipment in the transportation and construction industries means Hertz will have to try harder simply not to fall behind.

For 3Q 2007, worldwide revenue was up 9.3% to $2.45 billion. Revenue from worldwide car rentals increased 11%, due partly to an increase in the number of transaction days, as well as the average rental price per day. Airport rental rates increased around 5%, while off airport rental revenues shot up over 13%.

On the one hand, Hertz is growing its revenue stream, but on the other, it still carries a mountain of debt, $4.5 billion at the end of 3Q 2007. Hertz managed to reduce the debt load by a paltry $354 million during the quarter. Perhaps the new CFO Elyse Douglas can get the company's debt load under control so that more top line growth translates into bottom line growth.

MOST NOTEWORTHY: AVX Corp (AVX), Vishay Intertechnology Inc (VSH), Buffalo Wild Wings (BWLD) and three car-rental companies were today's noteworthy downgrades:

• American Technology downgraded both AVX Corp (NYSE: AVX) and Vishay Intertechnology Inc (NYSE: VSH) to Sell from Buy after channel checks suggested weaker than expected demand for the June quarter from Europe, EMS, and distribution.

• Sanders Morris believes investors should take profits in Buffalo Wild Wings Inc (NASDAQ: BWLD), cutting shares to Sell from Buy, and sees limited catalysts on the horizon that could drive shares higher.

• Morgan Stanley downgraded car rental companies Avis Budget Group (NYSE: CAR), Dollar Thrifty Automotive (NYSE: DTG) and Hertz Global Holdings (NYSE: HTZ) to Underweight from Equal-Weight to reflect weak Q2 rental prices.

OTHER DOWNGRADES:

• Lehman downgraded Amgen Inc(NASDAQ: AMGN) to EqualWeight from Overweight.

• Caris cut Limited Inc (NYSE: LTD) to Below Average from Average.

• Goldman downgraded Nvidia Corp (NASDAQ: NVDA) to Neutral from Buy.

• Soleil downgraded Cinemark Holdings Inc (NYSE: CNK) to Hold from Buy.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

America is a "sue-happy" country. Where else can you sue the dry cleaners for $54 million because they lost your Hickey Freeman pants. You think I am joking; but this is a case of life being stranger than fiction. A Washington DC judge (who in my opinion should know better) is suing a dry cleaners that lost his pair of pants.

For a moment last week my trust in the American legal system began to fail as Paris Hilton, heiress of Hilton Hotels (NYSE: HLT) fortune, spent a heart-wrenching three days in jail before being released by the sheriff for "medical reasons." Then suddenly my faith was restored as the judge sent her back to jail.

Well it didn't last long. It seems this week a pair of lost pants is worth crying over -- and $54 million. I guess America is land of the free and home of too many lawyers. Maybe this is why I respect Vice President Cheney: I mean, we all talk about the problem with lawyers, but at least he shot one.

Wall Street's equity market offers a solid slate this week - with five IPOs and ten Secondaries on the docket.

Those deals tentatively scheduled to price include:

IPOs:

• Day Undetermined:
  • The Blackstone Group (BX), a 133.3M-share IPO. Morgan Stanley and Citigroup are the lead managers. Filing range: $29.00-$31.00.
• Tuesday
  • Biofuel Energy (BIOF), a 9.5M-share IPO for this ethanol company. JP Morgan Chase, Citigroup, and AG Edwards are the lead managers. Filing range: $16.00-$18.00.
• Wednesday
  • Bway (BWY), an 11.765M-share IPO for this container company. Goldman Sachs and the Bank of America are the lead managers. Filing range: $16.00-$18.00.
  • GeoVera Insurance (GEOV), a 5.99M-share IPO for this residential insurance company. JP Morgan Chase and Merrill Lynch are the lead managers.
• Thursday
  • Aegerion Pharmaceuticals (AEGR), a 5M-share IPO for this cardiovascular medicines company. Lehman Brothers is the lead manager. Filing range: $12.00-$14.00.

MOST NOTEWORTHY: Roo Group (RGRP) Best Buy (BBY), Circuit City Stores (CC) and several healthcare companies were today's noteworthy initiations:

• ROO Group (OTCBB: RGRP) was initiated with a Buy rating and $3.50 target at Cantor. The firm believes the company is one of the few pure-play online video public investment opportunities for investors today.
• Best Buy (NYSE: BBY) and Circuit City Stores (NYSE: CC) were initiated at FTN Midwest with a Buy rating and Neutral rating, respectively.
• LifePoint Hospitals (NASDAQ: LPNT), Community Health Systems (NYSE: CYH), Tenet Healthcare (NYSE: THC) and MedCath Corp. (NASDAQ: MDTH) were all initiated with Hold ratings at AG Edwards. AG Edwards also initiated shares of Universal Health Services (NYSE: UHS) with a Buy rating and $72 target, citing the company's strong patient volume growth and favorable reimbursement trends.

OTHER UPGRADES:

• Famous Dave's of America (NASDAQ: DAVE) was initiated with a Buy rating at Feltl & Co.
• Needham initiated shares of RadiSys Corp. (NASDAQ: RSYS) with a Buy rating and $17 target, as it expects the company to benefit from the development of standards-based embedded solutions.
• Atmel Corp. (NASDAQ: ATML) was initiated with a Buy rating and $7.50 target at American Technology.
• Genomic Health (NASDAQ: GHDX) was initiated with an Outperform rating at Leerink Swann.
• Delta Air Lines (NYSE: DAL) was initiated with a Buy rating and $24 target at Soleil.
• Banc of America initiated shares of Hertz Global Holdings (NYSE: HTZ) with a Buy rating and $27 target.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).