Truck engine and power generation system manufacturer extraordinaire Cummins Inc. (CMI), which I first discussed here on April 3, 2009, at a price of $29.70, is making a strong case for 2011 "play of the year" -- and it's only April.

Cummins, which is up about 260%, sliced through major, psychological resistance at $100, tested $110, pulled back during the winter and has recently moved back toward $110. Hence, if you haven't already, now would be a good time to consider taking some profits off the table with CMI if you're in near $30.

Quoting the late, great Ethel Merman, everything's coming up roses for truck engine/power generation system manufacturer Cummins Inc. (CMI), first discussed here on April 3, 2009, at a price of $29.70.

Cummins sliced through major psychological resistance at $100 and is testing $110, so if you haven't already, now would be a good time to consider taking some profits off the table with CMI.

Truck engine/power generation system manufacturer Cummins Inc. (CMI), which I first wrote about on April 3, 2009, at a price of $29.70, has simply soared in the second half of 2010 to more than $90, and if you haven't already, now would be a good time to consider taking some profits off the table with CMI.

Further, I'd raise the sell/stop loss to $69 from $58, making this a 140% profitable trade at the $69 stop price. Not bad.

Even so, there's more upside ahead for Cummins. Cummins will likely post a 10% to 12% revenue gain in 2010, followed by a probable 11% to 14% increase in 2011.

If you are looking to profit from a stock that is benefitting from the driving forces in the economy, you should take a look at Cummins Inc. (CMI).

Cummins is powering up to new 52-week highs, and Goldman Sachs recently placed the company on its Conviction Buy List -- raising its price target to $104, signaling a 22% increase from the stock's current level of $85.

Goldman cites stricter global engine regulations and the need to upgrade existing machinery as one of the key factors that should boost Cummins growth.

Cummins was also recently named to the Dow Jones Sustainability World Index for the sixth consecutive year.

The chart of truck engine/power generation system manufacturer Cummins (CMI), which I first wrote about on April 3, 2009 at a price of $29.70, appears to be forming a bearish head-and-shoulders formation, hence it may be prudent to take some profits off the table.

However, those investors who can tolerate the risk can hold on to their full position, and go for an even bigger gain.

Look for Cummins to post a 10-12% revenue gain in 2010, followed by likely 11-14% increase in 2011.

Truck engine/power generation system manufacturer Cummins Inc. (CMI), first discussed here on April 3, 2009 at a price of $29.70, continues to impress.

Look for Cummins to post a 7-10% revenue gain in 2010, followed by likely 10-12% increase in 2011.

Analyst Upgrades

• Barrington upgraded Global Payments (GPN) to outperform from market perform following the company's Q3 results and raised earnings guidance.
• FBR Capital upgraded Foot Locker (FL) to outperform from market perform to reflect the company's improving comps and international expansion. The firm set a $17 price target for shares.
• Keefe Bruyette upgraded Legg Mason (LM) to outperform from market perform and raised its target for shares to $37 from $34.
• Acuity Brands (AYI) was upgraded to buy from hold at BB&T.
• Ann Taylor (ANN) was upgraded to hold from underperform at Jefferies.
• Waddell & Reed (WDR) was upgraded to buy from hold at Citigroup.

Analyst Upgrades

• Credit Suisse upgraded Blackrock (BLK) to outperform from neutral and added shares to its U.S. Focus List. The firm cites valuation for the upgrade. The firm raised its target to $280 from $270.
• Keefe Bruyette upgraded Greenhill & Co. (GHL) to outperform from market perform following the company's acquisition of Caliburn. The firm raised its price target for shares to $110 from $82.
• Deutsche Bank upgraded Athenahealth (ATHN) to buy from hold, citing the removal of the company's accounting overhang and a strong long-term outlook. The firm raised its price target for shares to $51 from $40.
• Ann Taylor (ANN) was upgraded to neutral from underperform at BofA/Merrill.
• Jacobs Engineering (JEC) was upgraded to sell from conviction sell at Goldman.
• Sterling Bancorp (STL) was upgraded to outperform from market perform at BMO Capital.

Cummins Inc. (CMI) has broken-through key resistance due to the global economic recovery, and I'm obviously reiterating my buy rating for the company's shares, first recommended on April 3, 2009, at a price of $29.70. If you bought Cummins in April, you're up an impressive 70%.

With more than 50% of its revenue from international sources, Cummins is obviously well-positioned for the global recovery, and look for the company to register an impressive FY2010 revenue gain, on sales gains of its efficient truck engine and infrastructure-based power generation equipment. Basically, institutional investors (IIs) have looked past CMI's FY2009 revenue decline, and have bid-up the company's shares since March 2009 on the U.S./global economic recoveries.

The global recovery is underway, and that's goods news for Cummins, Inc. (NYSE: CMI), which is why reiterating my Buy rating for the company's shares, first recommended on April 3, 2009 at a price of $29.70. If you bought CMI in April, you're up an impressive 57%.

Look for Cummins, with more than 50% of its revenue derived from international markets, to register an impressive FY2010 revenue gain, on sales gains of its efficient truck engine and infrastructure-based power generation equipment. Basically, institutional investors (IIs) have looked beyond CMI's FY2009 revenue decline, and have bid-up the company's shares since March, on the U.S./global economic recoveries.

I'm reiterating my Buy rating for Cummins Inc. (NYSE: CMI), first recommended on April 3, 2009 at a price of $29.70.

A global manufacturer and servicer of diesel and natural gas engines, electric power generations systems and engine-related parts, Cummins is the not-so-little-engine that could.

Analyst upgrades

• Oppenheimer upgraded Savient Pharmaceuticals (NASDAQ: SVNT) to Perform from Underperform after the FDA's Arthritis Advisory Committee voted 14-1 in favor of approving Krystexxa for gout.
• Banc of America/Merrill upgraded Texas Instruments (NYSE: TXN) to Buy from Underperform and raised its target to $27 from $18 based on expectations that margin expansion will be higher than Street expectations.
• UBS said Nvidia (NASDAQ: NVDA) has limited downside risk given the improved outlook for the graphics processor market and professional solutions business. Shares were upgraded to Neutral from Sell and its target was raised to $11.50 from $8.
• BHP Billiton (NYSE: BHP) was upgraded to Outperform from Neutral at Macquarie.
• Neutral Tandem (NASDAQ: TNDM) was upgraded to Outperform from Neutral at Baird.
• Central Garden & Pet (NASDAQ: CENT) was upgraded to Buy from Neutral at SunTrust.

Analyst upgrades:

• Bernstein upgraded Amgen (NASDAQ: AMGN) to Outperform from Market Perform on valuation as it believes threats to the core business are priced in at current levels and upside catalysts may come from pipeline news. The firm raised its target on shares to $65 from $57.
• Stephens upgraded CyberSource (NASDAQ: CYBS) to Overweight from Equal Weight on valuation as it believes the recent pullback creates a buying opportunity. The firm raised its target on shares to $16 from $14.
• JPMorgan upgraded Magna (NYSE: MGA) and Tenneco (NYSE: TEN) to Overweight from Neutral on expectations global auto production has sequentially bottomed with European light vehicle production rebounding in Q2. The firm also sees a short-term trading opportunity in TRW Automotive (NYSE: TRW), but keeps a Neutral rating on the stock.
• SINA Corp. (NASDAQ: SINA) was upgraded to Conviction Buy from Buy at Goldman.
• Cogent Communications (NASDAQ: CCOI) was raised to Buy from Hold at Citigroup.

Without question, it remains a market for the bold. There are some 'green shoots' sprouting in the economy, to cite phrase popularized by Fed Chairman Ben Bernanke, but there still are formidable problems.

That said, no one ever made a dime by establishing stock positions when things are 99% safe: by that time, almost every stock has been bid-up. You have to prudently bottom fish, and with that in mind, Cummins Inc. (NYSE: CMI) is worth a review.

Analyst upgrades:

• UBS upgraded Dollar Tree (NASDAQ: DLTR) to Buy from Neutral but lowered its target to $42 from $45 following the solid Q4 report. The firm expects Dollar Tree's cost containment to continue. JP Morgan upgraded shares to Overweight from Neutral on valuation as it believes the recent pullback is overdone and the company set achievable FY09 guidance. The firm has a $43 target on the stock.
  
• JP Morgan also upgraded Smithfield Foods (NYSE: SFD) to Overweight from Neutral on valuation as they find the stock oversold at current levels.
  
• KeyBanc upgraded Nordson (NASDAQ: NDSN) to Hold from Underweight based on valuation, strong balance sheet and cost reductions, and a solid track record of execution.
• Philips Electronics (NYSE: PHG) was upgraded to Neutral from Underweight at HSBC.
  
• Aeropostale (NYSE: ARO) was raised to Equal Weight from Underweight at Barclays.
  
• Carter's (NYSE: CRI) was upgraded at Goldman to Neutral from Sell.