Analyst Upgrades

• Citigroup (C) to outperform from market perform at Bernstein.
• Cubist Pharma (CBST) to outperform from neutral at RW Baird.
• Pentair (PNR) to buy from hold at Citigroup.
• Heritage Financial (HFWA) to outperform from market perform at Keefe Bruyette.
• SL Green Realty (SLG) and Digital Realty (DLR) to market perform from underperform at FBR Capital.
• MGM Resorts (MGM) to neutral from Sell at Janney Capital.
• Ciena (CIEN) to buy from neutral and Olin (OLN) to buy from underperform at BofA/Merrill.
• Mellanox (MLNX) to overweight from equal weight at Barclays.
• ConocoPhillips (COP) and Canadian Natural (CNQ) to overweight from neutral at JPMorgan.
• IDEX (IEX) to outperform from perform at Oppenheimer.
• Taiwan Semiconductor (TSM) to buy from hold at Deutsche Bank.
• Ctrip.com (CTRP) to positive from neutral at Susquehanna.
• Linear Technology (LLTC) and Analog Devices (ADI) to hold from sell at Auriga.
• Quicksilver (KWK) to outperform from market perform at BMO Capital.

Oil/natural gas giant Occidental Petroleum (OXY) first discussed here on April 27, 2009, at a price of $54.81, continues to shine, galloping above major, psychological resistance at $100 to trade near $106.

Therefore, if you haven't already, now would be a good time to take some profits with OXY if you're in near $55.

However, those investors who can tolerate the risk can maintain their full position with OXY, as there's more upside ahead.

Analyst upgrades:

• Verizon (VZ) to conviction buy from buy at Goldman.
• CSX (CSX) to outperform from market perform at Wells Fargo.
• AK Steel (AKS) to overweight from neutral, as well as Lorillard (LO) and Fifth Third Bancorp (FITB) to neutral from underweight, at JPMorgan.
• Marathon Oil (MRO) to overweight from equal weight at Morgan Stanley.
• Corning (GLW) to buy from outperform at CLSA.
• Quest Diagnostics (DGX) to buy from hold at Jefferies and to outperform from sector perform at RBC Capital.
• Salesforce.com (CRM) to buy from neutral at Roth Capital.
• Baker Hughes (BHI) to buy from hold at Weeden and to outperform from neutral at Macquarie.
• Western Digital (WDC) and Seagate (STX) to buy from underperform at BofA/Merrill.

As outlined, August proved to be a good time to add to shares of oil/natural gas giant Occidental Petroleum (OXY), first discussed here on April 27, 2009 at a price of $54.81, as the stock has soared to $90 from about $76 in the summer. And I still like the shares at this stage. Here's why:

Look for Occidental to post a double-digit volume increase in 2011, after a probable 15%-20% volume increase in 2010.

Occidental, which focuses on oil oil/gas exploration/production and has no refineries, is well-positioned to capitalize on oil's likely, continued historically high (above $50 per barrel) price in 2011. Several global exploration/production projects (Middle East, Latin America) look promising.

Analyst Upgrades

• Wells Fargo upgraded PG&E (PCG) to outperform from market perform and raised its range for shares to $50 to $52 from $44 to $46, citing the proposed settlement in the company's 2011 General Rate Case.
• Jefferies upgraded Huntsman (HUN) to buy from hold and raised its price target for shares to $17 from $12, citing valuation and the likelihood for favorable earnings revisions.
• RBC Capital upgraded Jack in the Box (JACK) to outperform from sector perform with a $28 target, citing checks showing improved fast food sales in recent months and easy comps.
• Sonic (SONC) was upgraded to outperform from sector perform at RBC Capital and $12 price target.
• Synaptics (SYNA) was upgraded to overweight from neutral at JPMorgan and $40 price target.
• Excel Maritime (EXM) was upgraded to buy from hold at Cantor and raised its price target to $7 from $5.

Analyst Upgrades

• FBR Capital upgraded Pioneer Natural (PXD) to outperform from market perform and raised its price target for shares to $85 from $60. The firm upgraded shares on expectations that returns from the company's Spraberry field will increase materially.
• Baird upgraded Acroda Therapeutics (ACOR) to outperform from neutral based on valuation and a new survey that indicates a strong uptake for Ampyra and improvements on the reimbursement front. The firm has a $40 target on the stock.
• Morgan Stanley upgraded Nokia (NOK) to overweight from underweight based on checks that indicate strong orders and less than expected discounting for its upcoming N8 smartphone.
• GlaxoSmithKline (GSK) and British American Tobacco (BTI) were upgraded to buy from neutral at BofA/Merrill.
• Quality Systems (QSII) was upgraded to outperform from market perform at William Blair.
• Siemens (SI) was upgraded to buy from neutral at UBS.

I first discussed Occidental Petroleum (OXY) here on April 27, 2009, at a price of $54.81, and shares of the oil/natural gas giant have totaled misbehaved this summer, falling about 16%, largely on second-quarter results.

Occidental did report a 3.6% oil/natural gas production increase in Q2, but in this supercautious market, the shares were still treated rudely. But I still favor the shares, and here's why.

Analyst Upgrades

• Wunderlich upgraded Granite Construction (GVA) to buy from hold, citing valuation and expected positive catalysts in 2011. The firm has a $29 price target for shares.
• Jefferies upgraded WuXi PharmaTech (WX) to buy from hold following the Q2 report, citing continued strength in China-based lab services growth. The firm has an $18 target on shares.
• BMO Capital upgraded Newell Rubbermaid (NWL) to outperform from market perform following capital structure actions. The firm has a $20 price target on the stock.
• Energizer (ENR) was upgraded to overweight from equal weight at Morgan Stanley.
• Cephalon (CEPH) was upgraded to buy from neutral at BofA/Merrill.
• Dycom (DY) was upgraded to outperform from market perform at Morgan Keegan.

There is more progress with Occidental Petroleum (OXY), first discussed here on April 27, 2009 at a price of $54.81.

Look for Occidental to post large earnings increases in 2010 and 2011, boosted by strong oil prices, which will offset above-average operating costs.

Occidental, which focuses on oil oil/gas exploration/production and has no refineries, is well-positioned to capitalize on oil's likely, upcoming surge to triple digits. Several global exploration/production projects (Middle East, Latin America) look promising.

Analyst Upgrades

• Deutsche Bank upgraded United Parcel Service (UPS) to buy from hold on expectations the company will benefit from improving international package volumes and restructuring initiatives. The firm raised its target on shares to $70 from $67.
• JPMorgan upgraded SVB Financial (SIVB) to overweight from neutral on valuation following the recent pullback in shares. The firm has a $54 price target on the stock.
• Baird upgraded ArvinMeritor (ARM) to outperform from neutral and raised its target to $15 from $12 following the Q2 report. The firm said ArvinMeritor has transformed its business model and is well-positioned for growth.
• UBS (UBS) was upgraded to overweight from neutral at JPMorgan.
• Occidental Petroleum (OXY) was upgraded to conviction buy from buy at Goldman.
• Vail Resorts (MTN) was upgraded to outperform from market perform at Wells Fargo.

Simply, oil is headed north in 2010, and so are Occidental Petroleum's (OXY) shares, which is a major reason I'm reiterating my buy rating for company, first recommended on April 27, 2009, at a price of $54.81.

If you bought OXY in April 2009, you're up about 45%. If you didn't, don't fret: there's more upside ahead, but catch this train now to earn an outsized gain with OXY in the next two to three years.

TheStreet.com's Jim Cramer says the stocks like to move higher along well-worn paths.

With the usual suspects rallying -- gold and oil -- it's important to remember how the oil rallies have unfolded in the past. You have to be able to recall the oil pecking order of the petroleum complex ramp.

First to move in the drilling complex is Transocean (RIG) (Cramer's Take), the wildest trader in the group. Then it is National Oilwell Varco (NOV) (Cramer's Take). Forget that both of these are the least affected by the day-to-day price of oil. The market's real stupid on these oil moves, and that's what happens. On the oil side it is Occidental (OXY) (Cramer's Take), which at least is closely correlated and can have a big move throughout the day.

I'm reiterating my buy rating for Occidental Petroleum (OXY), first recommended on April 27, 2009, at a price of $54.81. If you bought OXY in April, you're up an impressive 52%.

Occidental, which focuses on oil and gas exploration and production and has no refineries, is well-positioned to capitalize on oil's likely upcoming surge to triple digits. OXY's oil and gas production should increase about 6 to 7% in 2009, with another solid increase seen in 2010.

Analyst upgrades:

• Citigroup upgraded Polaris Industries (NYSE: PII) to Buy from Hold after channel checks indicated the company's sales trends improved through September. The firm raised its target on shares to $49 from $33.
• Jefferies upgraded Citrix Systems (NASDAQ: CTXS) to Hold from Underperform after channel checks indicated IT spending will be strong in the second half of 2009, but the firm finds the stock fully valued at current levels. Jefferies raised its target on shares to $40 from $32.
• Pali Captital upgraded Abercrombie & Fitch (NYSE: ANF) to Buy from Neutral on valuation and expectations that lower pricing and international growth will be catalysts going forward. The firm set a $45 price target on shares.
• Plum Creek Timber (NYSE: PCL) was upgraded to Neutral from Underweight at JPMorgan.
• Advanced Micro (NYSE: AMD) was upgraded to Buy from Neutral at UBS.
• PPD Inc. (NASDAQ: PPDI) was upgraded to Outperform from Neutral at Baird.

Did you a get chance to establish a position in oil giant Occidental Petroleum back in April? If you did, you're up about 35%, and the future looks bright.

I'm reiterating my Buy rating for Occidental Petroleum (NYSE: OXY), first recommended on April 27, 2009 at a price of $54.81.