Analyst upgrades:

• Kaufman Bros. upgraded American Superconductor (NASDAQ: AMSC) to Buy from Hold as it believes the follow-on contract from Sinovel has positive implications. The firm has a $36 price target on shares.
• Goldman upgraded Nike (NYSE: NKE) to Buy from Neutral citing valuation, visible long-term growth, and signs of sales stabilization. The firm has a $75 target on shares.
• Deutsche Bank upgraded Huntington Bancshares (NASDAQ: HBAN) to Buy from Hold on valuation following the recent underperformance. The firm raised its target on shares to $5.50 from $4.
• Novartis (NYSE: NVS) was upgraded to Buy from Hold at Citigroup.
• eHealth (NASDAQ: EHTH) was upgraded to Buy from Accumulate at ThinkEquity.
• China Precision Steel (NASDAQ: CPSL) was upgraded to Hold from Sell at Roth Capital.

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

• Adobe Systems Inc. (NASDAQ: ADBE) just beat low Q3 earnings estimates but revenue also declined.
• Best Buy Co. Inc. (NYSE: BBY) earnings fell short of estimates but revenue was better than expected.
• Cracker Barrel Old Country Store Inc. (NASDAQ: CBRL) posted better-than-expected Q4 earnings.
• Discover Financial Services (NYSE: DFS) posted a surprise Q3 profit but shares rose slightly on the news.
• Dress Barn Inc. (NASDAQ: DBRN) reported modest growth in both net income and revenue in Q4.
• FedEx Corp. (NYSE: FDX) said that its Q1 earnings and revenue dropped but its cash flow has improved.

Cracker Barrel Old Country Store Inc (NASDAQ: CBRL) posted solid numbers for its fiscal fourth quarter. Lower costs helped the simple country restaurant beat the Street's expectations. The company reported earnings of $22.8 million for the quarter – good for 99 cents a share. Last year, the company earned $21 million. Cracker Barrel has been topping forecasts for the past year.

Lower costs have been driving the trend, and absent impairment and store closing charges, Reuters estimates the company pulled in $1.06 a share.

Memphis-based package delivery giant FedEx Corp. (NYSE: FDX) is generally seen as an indicator of the state of commerce in the U.S. Last week, not only did the Fed's Beige Book report suggest that the economy had stabilized over the summer, with signs of recovery in some districts, But FedEx also boosted its earnings guidance due to stronger-than-expected volume in its international priority-delivery service. So a question going in to FedEx's fiscal first-quarter report this week is whether the company is still a bellwether.

For the three months that ended in August, when FedEx opened distribution hubs in Chicago and Toledo and declared a quarterly dividend, analysts surveyed by Thomson Reuters are looking for it to report that earnings fell 60.2% from a year ago to $0.49 per share. That's also down 23.4% from the previous quarter, as well as less than the recently updated outlook. First quarter revenue is expected to be down 18.3% from a year ago to $8.2 billion.

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

• American Eagle Outfitters Inc. (NYSE: AEO) reported better-than-expected Q1 earnings, lifting shares.
• AutoZone Inc. (NYSE: AZO) posted a better-than-expected Q3 profit said it will continue to buy back shares.
• Bank of Montreal (NYSE: BMO) reported lower Q2 earnings and also announced 1,100 layoffs.
• Big Lots Inc. (NYSE: BIG) higher Q1 earnings topped estimates even though same-store sales fell.
• BioMed Realty Trust Inc. (NYSE: BMR) earnings prospects after the recent capital raise led to a downgrade.

As families prepare to hit the roads for their summer vacations, AutoZone Inc. (NYSE: AZO), the nation's largest auto parts supplier, and Cracker Barrel Old Country Store Inc. (NASDAQ: CBRL), a staple for the hungry traveler, both topped Wall Street expectations in their quarterly earnings reports Wednesday.

For its fiscal third quarter, Memphis-based AutoZone reported that net income increased 9.5% from the year-ago quarter to $173.7 million, or $3.13 per share. It was the eleventh consecutive quarter of double-digit earnings per share growth. Net sales of $1.7 billion for the quarter ended May 9, represent a 9.3% increase from a year ago. Domestic same-store sales increased 7.4% for the quarter.

Analyst upgrades:

• Argus upgraded CBRL Group (NASDAQ: CBRL) to Buy from Hold as it believes increased efficiency at Cracker Barrel will help to boost restaurant traffic and same-store sales. The firm has a $33 target on shares.
  
• Citigroup upgraded shares of Eli Lilly (NYSE: LLY) to Buy from Hold on expectations the company's blood-thinning drug Effient is on track for a Q2 U.S. launch. The firm raised its price target on shares to $41 from $36.
  
• Needham upgraded Intel (NASDAQ: INTC) to Buy from Hold after recent channel checks suggested Intel's PC OEM orders are tracking better than expected. The firm expects Intel to keep prices and product mix stable, enabling margins to recover in Q2. Needham has an $18 target on INTC shares.
• SEI Investments (NASDAQ: SEIC) was upgraded to Outperform from Market Perform at Keefe Bruyette.
  
• Consolidated Edison (NYSE: ED) was raised at Jefferies to Buy from Hold.
  
• Taleo (NASDAQ: TLEO) was lifted to Outperform from Perform at Oppenheimer.

Analyst upgrades:

• Stephens upgraded shares of Ann Taylor (NYSE: ANN) to Overweight from Equal Weight to reflect the company's restructuring program, reductions in inventory and share repurchase program.
  
• AIMCO (NYSE: AIV) was upgraded to Buy from Hold at Deutsche Bank.
  
• UBS upgraded D.R. Horton (NYSE: DHI) to Neutral from Sell.
• Argus believes BigBand Networks (NASDAQ: BBND) is succeeding by adding new customers and driving new business with existing customers. Shares were upgraded to Buy from Hold.
  
• ThinkPanmure expects Capella Education (NASDAQ: CPLA) to attract students at a faster rate in the coming quarters and to improve operating margins. The firm raised shares to Buy from Accumulate and raised its target to $60 from $62.
• Advanced Medical (NYSE:EYE) was lifted to Hold from Underperform at Jefferies.

Analyst downgrades:

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

As with many interstate travelers, the Cracker Barrel is a regular meal stop during my family vacations. Partaking of some comfort food, perusing the country store for toys and foodstuffs we recall from our childhoods, and resting for a spell in the rocking chairs can be just the thing after long hours on the road.

But also like many travelers, I'm sure, I had no idea that the Cracker Barrel came from the small town of Lebanon (pronounced LEB-nun by many natives), Tennessee, the county seat of Wilson County, east of Nashville.

A local spring was the chosen site for the town, and a nearby grove of red cedars inspired the town's biblical name. The town was incorporated in 1819, and Cumberland University opened its doors there in 1842. The town square -- which today features antique and gift shops that bring tourists from far and wide -- was the site of a Civil War battle in 1862. Some 130 confederate soldiers are buried at Lebanon's historic Cedar Grove Cemetery.

The town expanded once the Tennessee and Pacific Railroad came to town after the Civil War, followed by the Lebanon Woolen Mills and the Gulf Red Cedar Company in 1908. General George Patton's tanks passed through the town on their way to Europe, and after World War II, the town expanded again, with the opening of Tennessee's first industrial park, which is the site of Cracker Barrel's corporate headquarters.

There is a well-known U.S. restaurant chain that was founded by a traveling salesman, who thought such places should offer family-friendly environments and good country cooking. He got it right.

CBRL Group (NASDAQ: CBRL) operates 564 Cracker Barrel Old Country Store restaurants and gift shops in 41 states. The restaurants offer breakfast, lunch and dinner menus, featuring home-style comfort foods. The associated retail stores offer a variety of decorative, gift and food items. Competitors include Brinker International (NYSE: EAT) and Darden Restaurants (NYSE: DRI).

The firm pleased investors earlier in the week, when it reported solid results for its fiscal fourth quarter and issued in-line guidance for FY08. The board subsequently boosted the quarterly dividend by 29% and declared a one million share buyback program. The stock popped on the quarterly report and has since moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys", ten "holds" and one "sell". The CBRL P/E ratio (15.25), PEG ratio (1.27), Price to Sales ratio (0.42), Price to Cash Flow ratio (7.44), Price to Free Cash Flow ratio (7.15), EPS Growth rate (35.29%) and Return on Equity (37.39%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past twelve months, it has traded between $35.75 and $50.74. A stop-loss of $35.75 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

MOST NOTEWORTHY: The small-cap bank sector, Waste Connections, Warnaco Group and Intersections were today's noteworthy upgrades:

• Lehman upgraded the small-cap bank sector to Neutral from Negative as they expect the group to benefit from the decline in short-term interest rates and the steeping yield curve. The firm upgraded Associated Banc-Corp (NASDAQ: ASBC), Pacific Capital Bancorp (NASDAQ: PCBC) and Westpac Banking Corp (NYSE: WBK) to Equal Weight from Underweight.
  
• Friedman Billings added Waste Connections (NYSE: WCN) to its Top Picks list. The firm believes the company can outperform the group and overall market in an economic downturn.
  
• Warnaco Group (NASDAQ: WRNC) was upgraded to Overweight from Neutral at JP Morgan on valuation and growth potential.
  
• JMP Securities' checks indicate that Intersections (NASDAQ: INTX) is on track to meet EPS expectations for the quarter and is well positioned to beat their 2008 EPS estimate of 80c. The firm raised shares to Strong Buy from Outperform.

OTHER UPGRADES:

• Best Buy Incorporated (NYSE: BBY) and AutoZone (NYSE: AZO) were upgraded to Strong Buy from Outperform at Raymond James.
  
• The firm also upgraded shares of CBRL Group (NASDAQ: CBRL) to Market Perform from Outperform.
  
• JP Morgan upgraded Ruby Tuesday (NYSE: RT) and Plexus Corp (NASDAQ: PLXS) to Overweight from Neutral.
  
• Bear Stearns raised MFA Mortgage Investments (NYSE: MFA) to Outperform from Peer Perform.
  
• Goldman added Automatic Data Processing (NYSE: ADP) to its Conviction Buy List.

MOST NOTEWORTHY: The more noteworthy downgrades today included eFunds Corp (EFD), Halliburton Co (HAL), Coventry Health Care, Inc (CVH), Fording Canadian Coal Trust (FDG) and US Steel Corp (X):

• Citigroup downgraded shares of eFunds Corp (NYSE: EFD) to Sell from Hold to reflect an unfavorable risk/reward as they see little upside if the company sells itself and significant downside due to recent operational issues if the company is not sold.

• Goldman cut Halliburton Co (NYSE: HAL) to Neutral from Buy based on valuation.

• Bear Stearns cut Coventry Health (NYSE: CVH) to Peer Perform from Outperform based on valuation.

• BMO Capital downgraded Fording Canadian Coal Trust (NYSE: CFG) to Underperform from Market Perform on valuation...

• UBS cut US Steel Group (NYSE: X) to Reduce from Neutral based on valuation.
  

OTHER DOWNGRADES:

• Goldman downgraded the coal sector, citing the potential for fundamentals to disappoint. The firm downgraded Arch Coal (NYSE: ACI) to Sell from Buy, Foundation Coal Holdings (NYSE: FCL) to Sell from Neutral, and Alpha Natural Resources (NYSE: ANR) to Neutral from Buy.

• Matrix cut CBRL Group (NASDAQ: CBRL) to Sell from Hold.

• CE Unterberg downgraded Atheros Communications (NASDAQ: ATHR) to Market Perform from Buy.

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

Cramer has a new method for predicting takeovers. He says that four of the 14 largest buybacks have either been taken over, or have agreed to be taken over, in the last few months. Thankfully he also said that he is only focusing on buyout candidates that he thinks are good all on their own, outside of trying to find takeover candidates.

The #3 pick is United Stationers Inc. (NASDAQ: USTR), which has bought back 20% of its outstanding shares. The company should have improving margins and there are only three analysts covering the stock. This is in the distribution of office products and office supplies.

The #2 pick is The Brinks Company (NYSE: BCO), which bought back 21% of its stock. He thinks the fundamentals are great on this one. It is a home security play and a play for securely transporting financial and luxury goods.

The #1 pick from Cramer in share buybacks is Weight Watchers International, Inc. (NYSE:WTW).

MOST NOTEWORTHY: Schering-Plough Corp (SGP), Southwest Airlines Co (LUV), Capital One Financial Corp (COF), Robert Half International Inc (RHI) and Heartland Express, Inc (HTLD) were today's more noteworthy downgrades:

• Schering-Plough Corp (NYSE: SGP) was downgraded to Market Perform from Strong Buy at Raymond James, to Neutral from Overweight at HSBC and to Hold from Buy at AG Edwards on valuation.

• HSBC also cut Southwest Airlines Co (NYSE: LUV) to Neutral from Overweight.

• Capital One Financial (NYSE: COF) was cut to Market Perform from Outperform at Freidman Billings and to Neutral from Buy at Merrill Lynch following its first quarter miss.

• Stifel downgraded Robert Half International (NYSE: RHI) to Sell from Hold after its disappointing first quarter report.

• Stifel also cut Heartland Express Inc (NASDAQ: HTLD) to Hold from Buy on valuation.

OTHER DOWNGRADES:

• Jefferies downgraded shares of RightNow Technologies (NASDAQ: RNOW) to Hold from Buy with a $17 target. William Blair downgraded RightNow to Market Perform from Outperform based on the company's sales organization changes and weak bookings.

• Shares of CBRL Group, Inc (NASDAQ: CBRL) were downgraded at JP Morgan to Neutral from Overweight based on difficult near-term fundamentals and limited visibility.

• Baird cut HNI Corp (NYSE: HNI) to Underperform from Neutral.

• China Eastern Airlines (NYSE: CEA) was downgraded to Sell from Hold at Deutsche Bank.

• Brean Murray downgraded Genitope (NASDAQ: GTOP) to Sell from Hold.

• Sandler O'Neill downgraded shares of Capitol Bancorp Ltd (NYSE: CBC) to Sell from Hold.

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