Like many oil and oil services companies, the stock of integrated oil and natural gas giant Hess Corp. (HES), first discussed here April 22, 2009, at a price of $50.41, has vectored higher this winter, rising from $67 to $82. Hence, if you haven't already, now would be a good time to take some profits with HES if you're in near $50.

However, those investors who can tolerate the risk can maintain their full position with HES, as the shares are headed north.

After meandering for the better part of 2010 due to sluggish U.S. gasoline sales amid the recession, in 2011 Hess has provided a textbook example concerning why one should sell an integrated oil stock reluctantly: for reasons why, note the price of gasoline at your local gas station.

The shares of integrated oil/natural gas giant Hess Corp (HES), have totally misbehaved since early spring, with the stock falling more than 20% after testing highs near $67. Hess was first discussed here on April 22, 2009 at a price of $50.41.

Hess also came dangerously close to the sell/stop loss at $47. A considerable portion of that selling was U.S. deepwater offshore drilling moratorium-related, as about 16% of Hess' production is based in the Gulf. Still, the moratorium will affect 2011 volumes, not 2010, but it appears some institutional investors exited the stock as soon as the U.S.'s moratorium was put in place.

Hess Corp. (HES), which I first wrote about on April 22, 2009, at a price of $50.41, has registered more progress since the last look. Look for integrated oil giant Hess to post a solid revenue/earnings performance in 2010, propelled higher by increases in upstream (oil and gas production) operations, which will benefit from high oil prices.

Downstream, Hess' refining sector, like other refiners, will be hurt by continued, low margins, due to relatively low gasoline demand in the U.S. It's possible that margins could begin to recover in early 2011, if 2010 U.S. job growth exceeds 2 million positions.

One of the first rules of behavioral maturity is, "Don't expend $1,000 worth of emotion over a 5-cent irritation."

Hence, don't get upset over those prices at the pump -- prices that almost certainly are headed much higher -- but profit from them, by owning Hess Corp (HES). I'm obviously reiterating my buy rating for the company's shares, first recommended on April 22, 2009 at a price of $50.41.

If you bought HES in April 2009, you're up about 20%. If you didn't, don't fret; there's more upside ahead.

MOST NOTEWORTHY: Kindred Healthcare, Five Star Quality, Corporate Executive Board, Deckers Outdoor and Discover were today's noteworthy upgrades:

• Jefferies upgraded shares of Kindred Healthcare Inc (NYSE: KND) to Buy from Hold on valuation as they believe the risk/reward is attractive given good near-term earnings visibility and reasonable prospects for legislation to remove a significant reimbursement overhang.
• The firm also upgraded Five Star Quality Inc (AMEX: FVE) to Buy from Hold following a meeting with management, to reflect the company's improving occupancy and better cost controls.
• Deutsche Bank upgraded shares of The Corporate Executive Board Company (NASDAQ: EXBD) to Buy from Hold as they believe the company is positioned for strong growth in 2008.
• Nollenberger upgraded shares of Deckers Outdoor Corporation (NASDAQ: DECK) to Buy from Neutral, as they believe the UGG brand will continue to outperform expectations both domestically and internationally.
• Discover Financial Services LLC (NYSE: DFS) was upgraded to Buy from Neutral at Calyon on valuation.

OTHER UPGRADES:

• HSBC raised Taiwan Semiconductor Manufacturing Company Ltd (NYSE: TSM) to Overweight from Neutral.
• Banc of America upgraded Hess Corporation (NYSE: HES) to Buy from Neutral.
• Wal-Mart Stores Inc (NYSE: WMT) was upgraded to Neutral from Sell at Merrill Lynch.
• Deutsche Bank upped General Mills Inc (NYSE: GIS) to Buy from Hold.