MOST NOTEWORTHY: CSG Systems, Bankrate and Intercontinental Exchange were today's noteworthy upgrades:

• Citigroup upgraded shares of CSG Systems (NASDAQ: CSGS) following the company's Comcast (NASDAQ: CMCSA) contract renewal to reflect increased visibility and an attractive cash flow yield. The firm raised their target price to $18.50 from $15.
  
• Roth Capital upgraded Bankrate (NASDAQ: RATE) to Buy from Hold citing valuation, the company's announced stock repurchase program, and expectations for some gross margin expansion in 2H08.
  
• BMO Capital upgraded Intercontinental Exchange (NYSE: ICE) to Outperform from Market Perform as they believes the threat of negative legislation to ICE's business has declined sharply in recent days and that current valuation is factoring a much worse outcome than is likely.

OTHER UPGRADES:

• Lennar (NYSE: LEN) was upgraded at UBS to Neutral from Sell.
  
• eHealth (NASDAQ: EHTH) was raised to Perform from Underperform at Oppenheimer.
  
• Nike (NYSE: NKE) was raised to Positive from Neutral at Susquehanna.

If you love Adidas' clothing and footwear then I have some good news for you. Adidas is eying to open about 2,300 new stores in China by 2010, lifting its total number to 6,300. The company's decision came as a result of strong demand from China even in times when we might expect to see some downturns.

Frederic Seiller, a vice president in charge of retail operations for Greater China, stated that the the global economic slowdown had no impact on Adidas's sales in China. In addition, the company is optimistic about its further gains, and forecast a nice demand from the local sportswear market. From this point of view, total sales in China are expected to come to 1 billion euros by 2010.

As well as getting growth in revenue, by opening its biggest store in the world in central Beijing Adidas aims to beat rival Nike Inc. (NYSE: NKE). Back in 2007, China became Nike's second-largest market, and its Chinese sales reached $1 billion in 2008.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Bed Bath & Beyond Inc. (NASDAQ: BBBY) Q1 earnings tumbled while revenues rose.
• Casella Waste Systems Inc. (NASDAQ: CWST) posted a narrower-than-expected Q4 loss.
• CKE Restaurants Inc. (NYSE: CKR) Q1 earnings increased but its revenue slipped.
• Darden Restaurants Inc. (NYSE: DRI) swung to a Q4 profit on strong sales at Olive Garden.
• Ericsson (NASDAQ: ERIC) said it might not see Q2 profit growth on lower demand and shipping delays.
• General Mills Inc. (NYSE: GIS) Q4 earnings declined but were in line with expectations.
• Gerber Scientific Inc. (NYSE: GRB) reported solid Q4 and full-year results that pleased investors.
• IHS Inc. (NYSE: IHS) beat Q2 expectations and posted record quarterly cash flow from operations.
• Jabil Circuit Inc. (NYSE: JBL) stronger-than-expected Q3 results led to an analyst's upgrade.
• KB Home (NYSE: KBH) widened its Q2 loss due to weak sales and falling prices.
• Kroger Co. (NYSE: KR) beat Q1 expectations as consumers sought discounts on food and gas.
• Monsanto Co. (NYSE: MON) beat Q3 earnings estimates but fell short of revenue estimates.
• Nike Inc. (NYSE: NKE) posted better-than-expected Q4 results boosted by international strength.
• Oracle Corp. (NASDAQ: ORCL) posted strong Q4 results that topped analysts' expectations (see transcript).

This post is part of my series featuring established companies and the smaller, more aggressive or innovative rivals that may eventually succeed them.

"From sea to shining sea" aptly describes the distance between Nike (NYSE: NKE) and Under Armour (NYSE: UA). Nike is headquartered in Beaverton, Oregon, while Under Armour calls Baltimore, Maryland, home. Nike splashed onto the scene locally in Oregon in 1964 and has developed a true international brand. With the likes of Michael Jordan, Joan Benoit Samuelson and Tiger Woods serving as spokesmen for the company, Nike has transcended virtually every sport and every demographic group.

Under Armour, founded in 1995, at first appealed to the serious athlete with its moisture-wicking synthetic fibers that help keep sweat and moisture from the skin and help regulate body temperature during strenuous exercise. Under Armour then discovered it was unwittingly creating a fashion statement. Like Nike, Under Armour is also crossing over to various demographic groups and weekend warriors as well.

Nike has the famous Swish as its corporate logo, while Under Armour has branded the bold U over A insignia. Nike has established its brand globally with a dual strategy of major retailers selling its apparel and shoes and its own distribution system. Nike has over 250 NikeTown stores in the United States and over 230 internationally. With the retail store system Nike can control the entire purchase from apparel to shoes to socks to sweatbands. Under Armour has just begun its own retail stores with two prototypes, one in Maryland and one in Illinois. It sells its various products through multiple channels, including its own user-friendly e-commerce web site.

According to Trey Thoelcke's coverage on earnings reports, Nike (NYSE: NKE), a competitor of Adidas (OTC: ADDDY), beat Wall Street expectations for its Q4 results. Analysts thought that Nike might be good for earnings of $0.96 per share, but the footwear entity booked $0.98 per share, beating estimates by two cents (thankfully, it wasn't the proverbial penny, which definitely gets boring after awhile). Investors didn't seem to be too keen on the results, as the stock sold off in after-hours trading on Wednesday, dropping almost 5%.

Let's take a closer look at the results. For the fourth quarter, the top line increased by 16% - not a bad revenue jump. And that $0.98 earnings per-share figure represented an increase of 14%. The fiscal year actually looked pretty good, too. Revenues increased 14%, and net income expanded by 28% to $3.74 per share. Gross margin expanded, and worldwide futures orders were up 11%. I like all these double-digit numbers, and I like the fact that the company paid out more in dividends this year than last, and I can see that Nike is taking advantage of the weak dollar through its international exposure.

Nike's stock has performed well, over the last five years, but lately it's not been as strong. Investors would certainly be justified in having a cautious stance with a company like Nike considering the current economic climate. Sneakers obviously might not be worth a lot of discretionary income in a time of high energy costs and slow growth. But with numbers like these, I have to say that Nike knows how to leverage its brand equity to full effect. This was a great yearly report, and if the stock pulled back a little further, I would definitely consider it.

Disclosure: I don't own any company mentioned here; positions can change at any time.

Before the bell: Futures lower on financials, tech concerns

Reporting today:
Palm Inc. (NASDAQ: PALM) is expected to post a loss of 22 cents a share in the fourth quarter.
ConAgra Foods (NYSE: CAG) is expected to post earnings of 34 cents a share in the fourth-quarter .

Nike Inc. (NYSE: NKE) reported late Wednesday a rise in quarterly profit of 12% to $437.9 million, or 86 cents a share, helped by gains in Europe and Asia. Sales jumped 16% to $5.1 billion. The earnings beat Wall Street's forecast. Shares are down 4.8% in premarket trading.

Anheuser-Busch Cos. (NYSE: BUD) will likely officially reject InBev NV's $46.3 billion takeover bid this week and announce plans to lower $1 billion in costs, pay a special dividend and sell off divisions like its theme-park unit to increase its stock price. InBev may then raise its offer.

Here's a quick recap of some additional earnings reports on Wednesday.

Beaverton, Ore.-based Nike Inc. (NYSE: NKE) said strong growth overseas helped boost its fourth-quarter profit by 12% to $490.5 million, or 98 cents per share. Analysts polled by Thomson Financial expected the company to earn 96 cents per share for the quarter. Shares fell more than 5% in after-hours trading to $62.15.

CKE Restaurants Inc. (NYSE: CKR) said its first-quarter profit climbed 8% to $16.6 million, or 31 cents per share, helped by a small increase in same-store sales at Carl's Jr. restaurants. Revenue fell 3% to $466.2 million. Analysts polled by Thomson Financial expected profit of 27 cents per share on revenue of $465.5 million. Shares fell 5 cents to $12.25 in after-hours trading.

Red Hat Inc. (NYSE: RHT) said its fiscal first-quarter profit rose 6.6% to $17.3 million, or 8 cents per share. Adjusted earnings were 18 cents per share. Revenue rose 32% to $156.6 million. Analysts polled by Thomson Financial on average predicted a profit of 18 cents per share on revenue of $153 million. Shares fell 19 cents in after-hours trading to $22.11.

General Mills Inc. (NYSE: GIS) said its fourth-quarter profit dropped 17% to $185.2 million, or 53 cents per share. Adjusted earnings were 73 cents per share, which met Wall Street expectations. Sales increased 13% to $3.47 billion beating expectations. The company reaffirmed its guidance for the full year. Shares fell almost 2% to $61.19.

Before the bell: Futures higher ahead of data, Fed

Reporting today are the agrichemicals firm Monsanto (NYSE: MON) -- AP Preview, and after the close, software giant Oracle (NASDAQ: ORCL) and Nike (NYSE: NKE).

Reported Tuesday:

• Jabil Circuit (NYSE: JBL) shares are up nearly 11% in premarket trading after the company reported its profit soared as revenue grew and costs declined, topping third-quarter earnings estimates. Merrill Lynch upgraded Jabil from Neutral to Buy.
  
• Red Lobster operator Darden Restaurants (NYSE: DRI) shares are up 1.9% in premarket trading after it also topped quarterly earnings estimates, postinga higher quarterly profit, boosted by the Olive Garden chain, and lower costs that helped raise operating profit at its Red Lobster chain.
• 3COM (NASDAQ: COMS) shares also rose over 6% in after-hours trading after it posted higher than expected revenue.

Meanwhile Pier 1 Imports (NYSE: PIR) shares were also nearly 5% higher in after-hours trading Tuesday after the retailer said it abandoned plans to take over rival home furnishings retailer Cost Plus (NASDAQ: CPWM) for $88 million.

It is going to be an interesting week. The Fed and oil will be at odds, and tempers are sure to flare on the trading floors. There are many earnings and eco reports we are looking at, and it is hard to choose which will be front and center. Traders and investors will be closely following every move by the Fed as they will be releasing a policy statement at 2:15 p.m. on Wednesday.

Also, stocks within the homebuilders group will be front and center as a few key players will share their earnings results. Have you seen the charts of these companies lately? Click for a good comparison. And after you take a peek, you may also wonder if they are actually stock charts or ski slopes. So with that as the backdrop, here are a few names that may actually be undercovered and worth a look.

Tuesday, June 24

Anything related to the automobile industry has been under siege of late, and I can't imagine how that will change anytime soon. HB Fuller Co. (NYSE: FUL) is involved in the manufacturing of the industrial performance/adhesive products for the assembly/packaging and automobile markets. The fact that the economy is lagging would lead one to the realization that, unless we see a quick turnaround of epic proportions, the reality of a lower share price will come with the next earnings release. Several down days of late have also had increasing volume, and that is not a good sign for a stock that is beginning to show signs of breaking down. Even so, First Call is showing a $0.45 per share quarterly estimate on $347 million of revenue.

Monday, June 23

• Walgreens (NYSE: WAG) to report Q3 earnings; conference call at 8:30am.

Tuesday, June 24

• FOMC to hold two-day meeting.
• Jabil Circuits (NYSE: JBL) to report Q3 earnings; conference call at 4:30pm.
• 3Com (NASDAQ: COMS) to report Q4 earnings; conference call at 5:00pm.

Wednesday, June 25

• Second day of two-day FOMC meeting; announcement at 2:15pm.
• Thornburg Mortgage (NYSE: TMA) to discuss valuation and accounting for recent financing transaction at 10:00am.
• Nike (NYSE: NKE) to report Q4 earnings; conference call at 5:00pm.
  
• Oracle (NASDAQ: ORCL) to report Q4 earnings; conference call at 5:00pm.
• Research in Motion (NASDAQ: RIMM) to report Q1 earnings; conference call at 5:00pm.

Thursday, June 26

• PDUFA date for Eli Lilly & Co's (NYSE: LLY) and Daiichi Sankyo's new drug application for Prasugrel.
• Palm Inc (NASDAQ: PALM) to report Q4 earnings; conference call at 4:30pm.
• Micron Technology (NYSE: MU) to report Q3 earnings; conference call at 4:30pm.

Friday, June 27

• PDUFA date for Indevus Pharmaceuticals' (NASDAQ: IDEV) New Drug Application for Nebido for treatment of male hypogonadism.
• PDUFA date for Johnson & Johnson's (NYSE: JNJ) and Eisai Co's (OTC: ESALY) Aciphex.
  

It wasn't that long ago that Wall Street was in love with Crocs, Inc (NASDAQ: CROX), the maker of the trendy slippers that took the world by storm last year. After going on a tear for most of 2007, the stock started to break down last November, and has been in a tail spin for the past 5 months.

The company is going to be reporting its first quarter numbers tomorrow after the market close, and all signs are pointing to yet another troublesome quarter for the company. Earnings.com is showing Wall Street estimates of 10 cents a share, but that number does not really hold too much water after the company announced a much weaker forecast last month in its preliminary release.

Last month, CROX shocked Wall Street when it said that it expected to see a 5 cent per share loss in the quarter, and revenues falling somewhere between $195 and $200 million. After that news came out, the already troubled stock took a serious nose dive, and gave up around 40% of its value.

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

The story of Nike Inc. (NYSE: NKE) and Under Armour (NYSE: UA) is just one more David and Goliath scenario. Just like in the biblical story, David's battle (UA) was more one of survival against the odds, while Goliath (NKE) truly did want to vanquish the diminutive challenger. Under Armour is capitalized at $1.28 billion while the long-established and legendary Nike has a capitalization more than 20 times the size at $26.38 billion.

NIKE, the world's #1 shoemaker, does more dominating than assisting, to capture more than 20% of the U.S. athletic shoe market. It designs and sells shoes for a variety of sports, including baseball, cheer-leading, golf, volleyball, hiking, tennis, and football. Under Armour is proving its mettle as an apparel warrior. Since its foray into the sporting goods market, the maker of performance athletic undies and apparel has risen to the top of the industry pack, boasting a big portion of the compression garment market.

In addition to playing a dominant role in the shoe market, Nike has retail and wholesale outlets that sell a broad range of branded sports gear, including clothes, watches, balls, hats, and an expanding array of accessories. Under Armour is expanding as well, trying to get a foot-hold (could not resist) in the shoe market starting with a series of cross-trainers. They hope to capture perhaps 10% of the market as they promote their up-and-coming brand.

Earlier this morning, I was looking through some news items from the past several days when I came across one at Brandweek that both interested and delighted me. The article concerned an online survey done at teen social networking site Habbo. Teenagers between the ages of 11 and 18 named some of their favorite brands. Companies like McDonald's (NYSE: MCD) and Nike (NYSE: NKE) did very well in the poll. But the company that delighted me that also was a winner in the survey was Coca-Cola (NYSE: KO).

One of the reasons why I was so happy can be found in the disclosure at the bottom of this piece -- I own shares of the beverage icon in my long-term portfolio. I suppose that would be the top reason, but here's the thing -- it's been my experience that the youth of America don't like Coca-Cola that much. Well, I should state that the youth that I know don't respect Coke (and they should, it's a delicious, refreshing experience that has no equal!). When it comes to soda, PepsiCo (NYSE: PEP) unfortunately seems to be the brand of choice among the younger folk in my area (don't take this as any sort of statistically scientific statement, please). Come to think of it, even older people that I know seem to prefer Pepsi. It really is a disconcerting situation. Coca-Cola stockholders realize that young people must be marketed to in a powerful manner so that future returns on invested capital in Coke's flagship brands can help drive value. And let's not forget that Red Bull wants to enter the cola wars -- see Zac Bissonnette's post about this bubbly new development.

Of course, as the article implies, the survey results don't necessarily translate into buying trends -- the survey, simply put, was checking on how well-known certain brands are among this specific demographic. Nevertheless, it's important for Coca-Cola to be known -- that's winning a big part of the battle for future perpetual customer loyalty. Coca-Cola still has a long way to go, in my opinion, in terms of instilling a "cool factor" into its famous trademark sodas. Like I say, it's been my perception that the younger a beverage consumer is, the more likely said beverage consumer is to prefer Pepsi. I don't like that, certainly (I did, however, like this survey!).

Disclosure: I own shares in Coca-Cola; positions can change at any time.

With this year's summer Olympics just around the corner, athletic outfitter Nike Inc. (NYSE: NKE) unveiled its new Olympic products yesterday.

While Nike has never really embraced the concept of being a sponsor for the Olympics, it prides itself on being an outfitter for the competing athletes. This year there will be thousands of Olympic hopefuls from over a hundred companies that will be sporting the famous "Nike Swoosh" on themselves for millions of watchers to see.

Nike will definitely leave its own footprint all over this summer's Olympic games. For the first time ever, BMX will be an Olympic medal sport, and the new Nike gear for the sport is being heralded by Nike's global director for action sports, John Martin, as the "illest BMX product ever." I honestly thought the word "illest" vanished from the vocabulary around the same time as Run-DMC; guess I was wrong. But I will definitely look forward to seeing the "illest" BMX gear ever, Nike definitely got my attention on that one!

Before the bell: Stocks lower after Alcoa, AMD, ahead of housing data

Nike (NYSE: NKE) unveiled its Olympics 2008 line Monday, its largest effort for the games ever. Nike actually created products in every sport at the games despite not being an official sponsor of the games like its rival Adidas. As for the U.S. team, it will be attired in Polo Ralph Lauren (NYSE: RL) garb.

If Apple Inc. (NASDAQ: AAPL) was upgraded Monday, today it finds itself on the flip side with a downgrade from Morgan Keegan from Market Perform to Underperform. Ummmm, contrarian is one thing, but I'm not so sure about that one. AAPL shares are down nearly 1.5% in premarket trading.

Meanwhile, according to MarketWatch, Goldman Sachs has upgraded some brokers and asset managers, but is remaining cautious on regional banks, mortgage and specialty finance and REITs. American Express (NYSE: AXP), Metlife (NYSE: MET), Bank of New York Mellon (NYSE: BK), NYSE Euronext (NYSE: NYX) and several others all were upgraded to Buy. Wells Fargo (NYSE: WFC) and several others were cut to neutral.