Analyst Upgrades

• Philip Morris (PM) to conviction buy from buy at Goldman.
• Peet's Coffee (PEET) to neutral from sell at Janney Capital.
• Cephalon (CEPH) to equal weight from underweight at Morgan Stanley.
• StoneMor Partners (STON) to outperform from neutral at RW Baird.
• Tibco (TIBX) to buy from underperform at BofA/Merrill.
• Apollo Group (APOL) to outperform from market perform at BMO Capital.

Netflix (NFLX) January put option implied volatility is low at 42, February is at 57; compared to its 26-week average of 52, according to Track Data, suggesting decreasing near-term price movement.

China Valves Technology (CVVT) overall option implied volatility of 61 is near its 26-week average, according to Track Data, suggesting nondirectional price movement.

Wonder Auto (WATG) overall option implied volatility of 68 is near its 26-week, average according to Track Data, suggesting nondirectional price movement.

Analyst Upgrades

• Piper Jaffray upgraded Edwards Lifesciences (EW) to overweight from neutral and raised its target price for shares to $77 from $53 after The New England Journal of Medicine reported the company's PARTNER Trial met primary endpoints.
• UBS upgraded Endo Pharmaceuticals (ENDP) to buy from neutral and raised its price target to $36 from $25. UBS is positive on Endo's creative strategic deals and believes the switch to Opana TRF from Opana ER will be easy. Additionally, the analyst believes pipeline expectations are very low.
• BMO Capital upgraded Nvidia (NVDA) to outperform from market perform based on expectations that share loss in the core GPU business will stop, Tegra momentum and valuation. The firm raised its price target to $16 from $9.
• FirstEnergy (FE) and Allegheny Energy (AYE) were upgraded to outperform from neutral at Credit Suisse.
• Mylan (MYL) was upgraded to conviction buy from buy at Goldman. Warner
• Chilcott (WCRX) was upgraded to overweight from equal weight at Morgan Stanley.

With widespread concerns over investments in the People's Republic of China right now, some traders have sworn off Chinese companies all together. That's a big mistake. Indeed, the current state of China stocks is uncertain and there is a lot of fear and frustration over China investments right now. But the issue is that all Chinese companies are not the same. There are a wide variety of China stocks listed in the U.S. -- state-owned enterprises, mid-cap blue chips and small-caps, each with specific characteristics.

To help navigate toward some promising China investments, here are three stocks that show potential for growth this earnings season.