Analyst upgrades:

• FBR Capital upgraded Anadarko Petroleum (NYSE: APC) to Outperform from Market Perform to reflect upcoming catalysts and the company's opportunity in subsalt. FBR raised its target on shares to $60 from $50.
• Citigroup upgraded Marvel (NYSE: MVL) to Hold from Sell on expectations the acquisition by Disney (NYSE: DIS) will close. The firm raised its target on shares to $50 from $31.
• JPMorgan upgraded Cubic (NYSE: CUB) to Overweight from Neutral on expectations the company will benefit from the Vix ERG acquisition and increased sales visibility. The firm raised its target on shares to $43 from $38.
• Siemens (NYSE: SI) was upgraded to Outperform from Market Perform at Bernstein.
• Deutsche Telekom (NYSE: DT) was upgraded to Neutral from Underperform at Credit Suisse.
• Thompson Creek (NYSE: TC) was upgraded to Sector Outperformer from Sector Performer at CIBC.

I started taking my daughter fishing when she was three years old. She has been hooked ever since. This year will be our first experience dropping lines from a boat, and I can't wait. That said, I need to gear up. That means taking a trip to Cabela's (NYSE: CAB) to buy all of the latest fishing gear.

Like most retailers, CAB has struggled with a stubborn economy. At the low, CAB traded for less than $5 per share. It has recovered smartly to its current price of $12. I suspect other fathers like me are heading to CAB en masse.

Before you retreat to your favorite summer locale with the perfect book, let's take a look at the stocks set to profit as consumers look to enjoy the fruits of their labor over the next several months.

For me, summer means lots of boating, fishing, and time with my family. And this year I'll be doing more of each to make up for lost time spent hunkering down during the downturn.

As such, companies that make the goods in each of these categories should do well. That's how it goes during a recession. Demand builds as we retreat to preserve cash and fix balance sheets.

This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.

Cabela's Inc. (NYSE: CAB) has come a long way since the husband and wife team of Dick and Mary Cabela sold outdoor gear from their kitchen in 1961. Today, Cabela's has become the largest mail-order, retail, and internet outdoor outfitter in the world, with record revenues of $2.3 billion in 2007. The company sponsors dozens of outdoor events, from the Cornhusker State Games to the Iditarod, and was named one of the Top 100 Companies to Work For in the Forbes January 2000 issue.

The company's world headquarters is located just off Route 80 in a small town called Sidney, Nebraska. Sidney has also come a long way since being called the "wickedest town in the west" back in 1868. The frontier town now holds more than 6,000 residents and was named one of the Top 100 Rural Communities in America in Boom Town, USA by Jack Schultz. Cabela's is by far the largest employer in Sidney, with more than 2,000 employees. The town's Memorial Health Center is a distant second, employing 300 people.

According to Cabela's, the Sidney store sees millions of visitors each year. In addition to all the fishing, hunting, climbing, and camping gear your heart can desire, the store is outfitted with museum-quality animal displays, huge aquariums, and the largest of trophy animals scattered around the store. They have a delicatessen-style restaurant with selections that would make your mouth water, including elk, wild boar, ostrich, and bison sandwiches. Cabela's even has a large campground and RV park outside its store where visitors can put their newly purchased equipment to good use.

In his Half-Priced Stocks newsletter, value investor Nathan Slaughter recently assessed stocks based on the general investment philosophy of Benjamin Graham, the noted value investor under whom Warren Buffett studied.

One issue that stands out in his view is Cabela's (NYSE: CAB), one of the world's largest specialty retailers of hunting and fishing gear, camping equipment, and outdoor apparel.

"The cornerstone to Graham's success and his enduring legacy to value investors was his 'margin of safety' concept. Specifically, he would take a hard look at dividend yields, price-to-book ratios, and other key metrics.

"Cabela's originated as a direct marketer and once primarily sold its products via catalog, but has since augmented that distribution channel with e-commerce operations and a growing chain of nearly 30 stores spread throughout 19 states.

MOST NOTEWORTHY: HSBC Holdings, AstraZeneca, Syneron Medical, Talbots, BankUnited and First Fed Financial were today's noteworthy downgrades:

• UBS downgraded shares of HSBC Holdings(NYSE: HBC) to Neutral from Buy on valuation, rising customer defaults and slower growth at the company's the U.S. consumer-finance unit.
  
• UBS also downgraded AstraZeneca (NYSE: AZN) to Sell from Neutral, as they believe the company faces major risks from drug approvals, competition and lawsuits.
  
• Merriman downgraded shares of Syneron Medical (NASDAQ: ELOS) to Neutral from Buy following the company's Q3 earnings preannouncement due to near-term margin erosion and growth drivers that remain four quarters away.
  
• CIBC downgraded shares of Talbots (NYSE: TLB) to Sector Performer from Outperformer as they believe 2H07 expectations are too high given the current weakness in the Missy space.
  
• Friedman Billings downgraded BankUnited (NASDAQ: BKUNA) to Market Perform from Outperform and FirstFed Financial (NYSE: FED) to Underperform from Market Perform based on credit trends that are eroding faster than anticipated.

OTHER DOWNGRADES:

• Merrill downgraded JMP Group (NYSE: JMP) to Neutral from Buy.
  
• Baird downgraded Cabela's (NYSE: CAB) to Neutral from Outperform.
  
• Societe Generale downgraded Business Objects (NASDAQ: BOBJ) to Hold from Buy.

Earlier this summer the Motley Fool took a look at investment opportunities in Nebraska. Apparently, only 18 public companies are based in the cornhusker state, the largest of which are familiar names to even the most casual investors: Berkshire Hathaway (NYSE: BRK.A), Union Pacific Corp. (NYSE: UNP), Conagra Foods Inc. (NYSE: CAG), and TD Ameritrade (NASDAQ: AMTD). But the Motley Fool also mentioned two smaller, less-familiar stocks: sporting goods retailer Cabela's Inc. (NYSE: CAB) and fashion retailer The Buckle Inc. (NYSE: BKE).

Sidney-based Cabela's was founded in 1961 and went public in 2004. Cabela's is considered a buy by the consensus of analysts surveyed by Thomson Financial, but a closer look shows that they are split between strong buy and hold. The share price reached a 52-week high of $28.80 in early August after Cabela's second quarter results beat Wall Street expectations. The price was $23.91at the close on Wednesday. The Motley Fool points to tough same-store sales and insider trading as reasons for Cabela's "sophomore slump." In other words, high expectations from the IPO have worn off and its time to consider buying. In addition, Motley Fool, like Consumer Reports before it, likes Cabela's VISA credit card. Cabela's was also recently included on S&P Small Cap 600 index, and it made the 2007 Forbes list of 100 best mid cap stocks. Cabela's will release third quarter results on November 1.

Starting a business is tough enough, but achieving success in the outdoor industry is a real challenge since business comes and goes with the seasons.

Cabela's Inc. (NYSE: CAB), which makes hunting, fishing and outdoor gear hailed victory during Friday morning's trading, when shares soared $3.23 higher, gaining more than 15%.

Cabela's 52-week high was surpassed during earlier sessions, with shares trading as a high as $28.80. There's no doubt the rise in shares is a result of Cabela's 34% profit jump in the second quarter.

The retailer reported profit of $11.3 million on revenue of $451.2 million, against last year's second-quarter profit of $8.4 million on revenue of $387.3 million.

Shortly after 2 p.m., Cabela's shares were trading at $24.20, $3.46 higher than Thursday's $20.74 close.

The Nebraska-based company strategically opens up shop in areas such as Hazelwood, Missouri, and Greenwood, Indiana, zeroing in on their target customers to bring in revenue. According to Dennis Highby, Cabela's president and chief executive officer, Cabela's is scheduled to open seven new stores by the end of 2007. Sound risky? Never fear -- for the outdoor industry, peak selling season is here.

MOST NOTEWORTHY: Expedia (EXPE), YRC Worldwide (YRCW), Fiserv (FISV), and select radio stocks were today's noteworthy upgrades:

• JP Morgan upgraded Expedia (NASDAQ: EXPE) to Overweight from Neutral on expectations for U.S. bookings growth and margin stabilization.

• YRC Worldwide (NASDAQ: YRCW) was raised to Neutral from Underperform based on valuation.

• Fiserv (NASDAQ: FISV) was upgraded to Sector Outperformer from Sector Performer at CIBC following the CheckFree (CKFR) acquisition.

• Banc of America upgraded Citadel Broadcasting (NYSE: CDL), Cox Radio (NYSE: CXR) and Entercom Comm (NYSE: ETM) to Neutral from Sell as they believe it is time to cover short positions with the expected Q3 weakness likely priced into shares. They caution that this upgrade is not a buy signal as downside risk remains...

OTHER UPGRADES:

• Wachovia upgraded Cabela's (NYSE: CAB) and KBR Inc (NYSE: KBR) to Outperform from Market Perform.

• Baird raised Lear (NYSE: LEA) To Outperform from Neutral.

• Nokia (NYSE: NOK) was upgraded to Outperform from Neutral at Credit Suisse.

• Pacific Crest upgraded shares of eBay (NASDAQ: EBAY) to Outperform from Sector Perform.

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

Companies like Anheuser-Busch (NYSE:BUD) and PepsiCo (NYSE:PEP) are scrambling to find new niches for product offerings. Sometimes, though, I think they step over the line -- sometimes, way over the line. Beer and milk? Cucumber soda? Here are a few beverages to ponder on a hot summer afternoon.

MOST NOTEWORTHY: Today's notable upgrades include SanDisk Corp (SNDK), Cabela's Inc (CAB) and Knightsbridge Tankers Ltd (VLCCF):

• CIBC upgraded shares of SanDisk Corp (NASDAQ: SNDK) to Sector Outperformer from Sector Performer with a $50 target. The firm finds the risk/reward compelling due to a rebounding NAND outlook for Q4 and 2008 and the probability of Hynix signing a watershed licensing deal.

• Matrix USA upgraded Cabela's Inc (NYSE: CAB) Inc to Hold from Sell as retail operations have improved, providing a boost to fundamental trends.

• JP Morgan upgraded shares of Knightsbridge Tankers (NASDAQ: VLCCF) Ltd to Neutral from Underweight based on valuation and increased time-charter contract coverage.

OTHER UPGRADES:

• Merrill Lynch upgraded Gilead Sciences, Inc (NASDAQ: GILD) to Buy from Neutral to reflect improved prospects for long-term growth of the company's HIV-franchise.

• UBS resumed coverage of Express Scripts, Inc (NASDAQ: ESRX) with a Buy rating, up from its previous Neutral rating.

• Deutsche Bank upgraded Valspar Corp (NYSE: VAL) with a Buy from Hold and $34 target.

• HSBC upgraded Dow Chemical Co (NYSE: DOW) to Overweight from Neutral as the firm believes a joint venture with Reliance could trigger a valuation re-rating with a higher multiple, offsetting any EPS dilution.

• Caris upgraded Seagate Technology (NYSE: STX) to Above Average from Average as the firm believes Seagate has too many structural advantages over the competition.

• Buckingham upgraded TJX Cos (NYSE: TJX) to Strong Buy from Accumulate with a $33 target.

• Lehman Brothers upgraded Volkswagen ADS (OTC: VLKAY) to Equal-Weight from Underweight.

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

MOST NOTABLE: Cabela's Inc (CAB), Time Warner Inc (TWX), Open Text Corp (OTEX) and Tortoise Capital Resources Corp (TTO) were some of today's more notable initiations:

• Cabela's inc (NYSE: CAB) was initiated with an Outperform rating and $30 target. The firm is confident in Cabela's outlook given the company's substantial store expansion opportunities, encouraging operating environment and valuation.

• Time Warner (NYSE: TWX) was started with a Buy rating and $25 target at UBS.

• Benchmark initiated Open Text Corp (NASDAQ: OTEX) with a Sell rating.

• Tortoise Capital Resources (NYSE: TTO )was initiated by both Ferris Baker and Stifel with a Buy rating.

OTHER INITIATIONS:

• CIBC initiated Volterra Semiconductor Corp (NASDAQ: VLTR) with a Sector Performer rating.

• Goldman initiated Savvis, Inc (NASDAQ: SVVS) with a Buy rating and $50 target.

• Cowen started Cogent Communications Group, Inc (NASDAQ: CCOI) with an Outperform rating.

• Avondale initiated Callaway Golf Co (NYSE: ELY) with a Market Outperform rating and $20 target.

• ThinkEquity started Adventrx Pharmaceuticals, Inc (NYSE: ANX) with a Buy rating and $5 target.

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

Cramer asks -- how can you spot a turnaround before it hits the market?

Cramer answers that you have to look for management getting the operations back in-line. Therefore, he thinks you should be a buyer of Cabela's Inc. (NYSE: CAB), a hunting and fishing store that killed him before.

Cramer previously thought Cabela's was the real deal and it killed him. Management was out of it, not knowing anything, and then they even slammed the market by doing a 5 million share secondary offering. But now, Cramer said, CAB is actually a different story and has everything pointing to a turnaround.

CAB stock should be bought, because Cramer believes there will be an uptick in same-store-sales, and lower gas prices will specifically help since many drive 200 miles to get to the stores. CAB also has a new, improved inventory system. It should be easy to post higher numbers since this quarter last year was horrific. The company also has 8 new stores opening in 2007, up from its 17 stores now. He said it is also still quite hated and analysts still dislike the stock and one-sixth of the float is short now.

Cramer once again warned about buying after-hours and said that you will be in the hold 3 days from now if you pay up more than $0.50 from the close today. He thinks it can go to $23 to $28, but you have to use a limit order on it.

Jon Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.