Analyst Upgrades

• Siemens (SI) to buy from hold at Deutsche Bank.
• Diamond Offshore (DO) to market perform from underperform at FBR Capital.
• MeadWestvaco (MWV) to conviction buy from neutral at Goldman.
• TD AmeriTrade (AMTD) and Cabot Oil & Gas (COG) to buy from neutral at BofA/Merrill.
• Janus Capital (JNS) to hold from sell at Citigroup.
• Motorola Mobility (MMI) to buy from neutral at UBS.
• Frontier Communications (FTR) to neutral from underperform at Macquarie.
• Humana (HUM) to buy from hold at Argus.

Analyst Upgrades

• Hewlett-Packard (HPQ) to buy from neutral at UBS.
• Fluor (FLR) to overweight from neutral at JPMorgan.
• Macy's (M) to outperform from neutral at Credit Suisse.
• Canadian Solar (CSIQ), JA Solar (JASO) and HeartWare (HTWR) to buy from hold at Auriga.
• Ashford Hospitality (AHT) to outperform from market perform at FBR Capital.
• RenaissanceRe (RNR) to buy from neutral at Janney Capital.
• DCT Industrial (DCT) to market perform from underperform at Wells Fargo.
• Coeur d'Alene Mines (CDE) and Silver Standard (SSRI) to buy from hold at Deutsche Bank.
• Weatherford (WFT), Hercules (HERO), GulfMark Offshore (GLF), Tidewater (TDW) and GlaxoSmithKline (GSK) to buy from hold, and Diamond Offshore (DO) to hold from underperform, at Jefferies.
• Ritchie Bros. (RBA) to buy from neutral at BofA/Merrill.
• AstraZeneca (AZN) to buy from hold at Citigroup.

"Loews Corp. (L) is a holding company run by the New York Tisch family; the stock is selling at less than nine times earnings, and an almost 30% discount to its NAV, based on a sum of the parts," says Adrian Day.

The money manager and editor of The Global Analyst explains, "The company's businesses are mostly doing well; the balance sheet is rock solid; and the shares are undervalued.

"I'm split on the energy sector. On the one hand, I have no doubt that the price of oil has been held artificially high by paper trading rather than demand," says Jack Adamo.

The editor of Insiders Plus continues, "On the other hand, the oil spill in the Gulf Of Mexico has knocked stock prices for a loop; there are a number of stocks that have fallen 30% to 50%, primarily due to that factor.

"Two idea that we have decided to add to the income section of our model portfolio re Diamond Offshore Drilling (DO) and France-based Total SA (TOT).

Analyst upgrades

• Deutsche Bank upgraded Sonoco Products (SON) to buy from hold after the company reported Q1 results and raised guidance. The firm upped its target for shares to $38 from $32.
• Baird upgraded Western Digital (WDC) to outperform from neutral following the solid Q3 report and guidance. The firm raised its target to $50 from $48.
• Goldman upgraded Qwest (Q) to neutral from sell. Qwest is being acquired by CenturyLink (CTL).
• Hershey (HSY) was upgraded to neutral from underweight at JPMorgan.
• Principal Financial (PFG) was upgraded to neutral from sell at UBS.
• Monster Worldwide (MWW) was upgraded to market perform from underperform at Wells Fargo.

Rare is the day one should sell an oil/natural gas services play; but rare also is the day that I recommend a stock near $100. However, there are exceptions, and Diamond Offshore Drilling (DO) is one, which is why I'm Reiterating my Buy rating for the company's shares, first recommended on June 10, 2009 at a price of $91.63.

Diamond Offshore is considered to be better-positioned than other offshore oil/natural gas drillers for 2009-2010, due to a strong backlog of existing contracts, and a significant cash position. DO also services customers in about 50 countries: a major customer is Petroleo Brasileiro (PBR).

Diamond Offshore Drilling's (NYSE: DO) shares are poised to break-out to the upside, hence I'm reiterating my Buy rating on DO, first recommended on June 10, 2009, at a price of $91.63.

Diamond Offshore is considered to be better-positioned than other offshore oil/natural gas drillers for 2009-2010, due to a strong backlog of existing contracts, and a significant cash position. Some of that cash could be used to buy newbuild rigs and/or weaker offshore drilling contractors. DO services customers in about 50 countries; a major customer is Petroleo Brasileiro (NYSE: PBR).

Most investors know that it's an energy-intensive world, and even though the U.S. and global recessions have led to real declines in aggregate energy usage, don't look for that trend to continue. Further, the Obama administration's admirable goal to create a more self-reliant, energy-independent nation and the impact of efforts to first limit, then eliminate global warming from fossil fuels opens the door to alternative energy source development.

But, as Saudi Arabia reminds us, and the world, barring a breakthrough technology, fossil fuels will remain a major energy source for at least the next thirty to fifty years. In other words, the reign of oil has merely paused, not ended, which is why it's prudent to review Diamond Offshore (NYSE: DO).

Analyst upgrades:

• Jefferies upgraded Aruba Networks (NASDAQ: ARUN) to Buy from Hold following the company's Q3 results to reflect improved visibility. The firm raised its target price to $6.50 from $3.
• Citigroup upgraded Mosaic (NYSE: MOS) and Potash (NYSE: POT) to Buy from Hold and Agrium (NYSE: AGU) to Hold from Sell as it believes stronger grain fundamentals more than offset China contract risk. The firm raised its target on Mosaic to $72 from $48, on Potash to $145 from $83 and on Agrium to $55 from $36.
• Fulton Financial (NASDAQ: FULT) Was upgraded to Market Perform from Underperform at Keefe Bruyette.
• Rio Tinto (NYSE: RTP) was raised to Neutral from Sell at Goldman.
• Noble Corp. (NYSE: NE) was upgraded at Deutsche Bank to Buy from Hold.

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

• Apollo Group Inc. (NASDAQ: APOL) reported that Q4 revenue soared despite the recession.
• Baidu Inc. (NASDAQ: BIDU) posted strong annual revenue, but at a slowing growth rate.
• Career Education Corp. (NASDAQ: CECO) easily topped Q4 earnings expectations, lifting shares up.
• Comcast Corp. (NASDAQ: CMCSA) Q4 earnings beat expectations and it increased its dividend.
• CVS Caremark Corp. (NYSE: CVS) shares jumped after it reported higher earnings in Q4.
• Digital River Inc. (NASDAQ: DRIV) shares soared on better-than-expected Q4 earnings and revenue.
• Expedia Inc. (NASDAQ: EXPE) reported dismal results due to a huge good will write down.
• Goodyear Tire & Rubber Co. (NYSE: GT) posted a greater-than-expected Q4 net loss and announced job cuts.
• Hormel Foods Corp. (NYSE: HRL) exceeded Q1 earnings expectations due to the popularity of SPAM.

"Loews (NYSE: L), the holding company of the New York-based Tisch family, is a way of buying a collection of good stocks at a discount, with much else thrown in free," says Adrian Day.

The editor of the top-notch The Global Analyst explains, "These value investors have a long record of buying quality assets cheaply when they are out of favor, nurturing them, and eventually monetizing them."

"Everyone loves a sale, right? Typically, the Tisch family buys major chunks of out-of-favor businesses, often publicly traded, and holds them for many years. They exemplify the important traits of successful value investors: discipline and patience.

"I calculate a New Asset Value for Loews-taking current (depressed) stock prices for its publicly traded holdings, the cash, and conservative valuations for the private assets-of almost $39 per share.

Despite the oil market's recent correction / minor pullback, oil remains at an elevated price, and the outlook for the oil and oil services sector remains solid.

And one oil service company worth an evaluation is Diamond Offshore (NYSE: DO).

Diamond is a contract driller of offshore oil and gas wells, with a concentration in deepwater drilling. The company has a strong fleet of floater rigs: dayrates for these rigs will continue to increase at double-digit rates, a market condition that reflects their increased value stemming from higher energy prices, and some pricing power for DO.

Further, Diamond has an impressive geographical footprint (rigs operating in the Gulf of Mexico, North Sea, South America, Africa, Australia, and Southeast Asia) and superior client diversification (51 customers). The Reuters F2007/F2008 EPS consensus estimates for DO are $6.75/$11.89.

"The asset boom continues," say Mary Anne and Pamela Aden in The Aden Forecast. "All of the pieces have fallen into place. Following the Fed's move to lower interest rates, a recession is now less likely than it was a month ago, while inflation is now more likely.

"There is really every reason why oil should stay strong. Tensions in the Middle East with the threat of possible supply disruptions alone will keep pressure on the oil price. Then we still have the chance for hurricanes threatening the Gulf of Mexico's platforms, refineries, and pipelines.

"The reason this is so sensitive is because the world is dependent on oil and this demand is growing by leaps. As our good friend Doug Casey notes, The International Energy Agency reported that they see an oil supply crunch within five years that will force up prices to record levels and increase the West's dependence on the OPEC cartel.

"This is a very real possibility and in spite of temporary dips as we saw with the credit crunch, high oil is here to stay. Our first technical target has been $90, with a further move to $100 after that.

For new energy positions, the Aden sisters recommend Schlumberger Ltd. (NYSE: SLB), Diamond Offshore Drilling Inc. (NYSE: DO), and Transocean Inc. (NYSE: RIG). For investors who want a diversified portfolio of energy holdings, they recommend the Energy Select SPDR (AMEX: XLE) and the iShares S&P Global Energy Fund (NYSE: IXC).

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment commentary and favorite stocks of the nation's leading financial newsletter advisors.

Leo Fasciocco is a technical specialist who focuses on finding breakout buys -- stocks that have broken out from their trading bases and are poised, in his view, to move higher.

In his Ticker Tape Digest he has isolated two intriguing energy plays: Diamond Offshore Drilling Inc. (NYSE: DO) searches for energy below the sea, while solar firm Suntech Power Holdings Co. (NYSE: STP) looks skyward.

The advisor explains, "Diamond Offshore has 30 semisubmersibles, 13 jack-up rigs (mobile drilling platforms), and one drillship. They operate around the world. The company contracts with major oil and gas companies.

"DO's profit outlook is excellent and should be the driver to send the stock higher. Technically, the stock's long-term chart shows a powerful bull market. It has soared from 20 to 113 the past three years, riding the rising price of crude oil.

MOST NOTEWORTHY: Nasdaq Stock Market, Family Dollar, Circuit City, Wells Fargo and Key Corp were today's noteworthy downgrades:

• Credit Suisse downgraded Nasdaq Stock Market Inc (NASDAQ: NDAQ) to Market Perform from Outperform on valuation.
  
• JP Morgan expects Family Dollar Stores Inc (NYSE: FDO) to face macro pressures and increased competition from Wal-Mart Stores Inc (NYSE: WMT) and Dollar General.
  
• Bear downgraded shares of Circuit City Stores Inc (NYSE: CC) to Peer Perform from Outperform based on lack of visibility, execution issues, softer consumer environment, potential pricing disruptions, and product cycle concerns.
  
• Merrill downgraded shares of Wells Fargo and Company (NYSE: WFC) to Neutral from Buy to reflect higher credit losses and valuation and KeyCorp (NYSE: KEY) to Sell from Neutral to reflect the company's "weak" revenue growth.

OTHER DOWNGRADES:

• B. Riley downgraded shares of Iris International Inc (NASDAQ: IRIS) to Neutral from Buy.
  
• Soleil downgraded ExpressJet Holdings Inc (NYSE: XJT) to sell from Hold.
  
• Calyon downgraded Weatherford International (NYSE: WFT), Transocean Inc (NYSE: RIG) and Diamond Offshore Drilling Inc (NYSE: DO) to Add from Buy.