Analyst Upgrades

• Akamai (AKAM) to overweight from neutral at Piper Jaffray.
• Las Vegas Sands (LVS) to buy from neutral at UBS.
• Aetna (AET) to Outperform from market perform at Leerink.
• Hot Topic (HOTT) to buy from neutral at Janney Capital.
• Colonial Properties (CLP) upgraded to Outperform from market perform at FBR Capital and to buy from hold at Citigroup.
• Altera (ALTR) to buy from hold at Citigroup.
• American Reprographics (ARC), CarMax (KMX) and American Campus (ACC) to outperform from neutral at RW Baird.
• Zebra Tech (ZBRA) to neutral from underweight at JPMorgan.
• IMAX (IMAX) to buy from hold at Canaccord.
• Basic Energy (BAS) to neutral from sell at Goldman.
• Mednax (MD) to buy from neutral at BofA/Merrill.
• UTi Worldwide (UTIW) to buy from hold at Stifel Nicolaus.

Independent oil and natural gas company Devon Energy (DVN), first discussed on May 27, 2009, at a price of $60.89, has soared this winter from about $70 to $90. Now would be a good time to consider taking some profits off the table if you're in near $61 with DVN.

However, those investors who can tolerate the risk can maintain their full position and go for an even bigger gain, as there's more upside ahead for DVN.

Analyst Upgrades

• Aetna (AET) to buy from neutral at Goldman.
• Kellogg (K) to buy from neutral at UBS.
• PetSmart (PETM) to outperform from market perform at JMP Securities.
• NetApp (NTAP) and Scripps Networks (SNI) to buy from hold at Wunderlich.
• Thoratec (THOR) to buy from hold at Auriga.
• ArcelorMittal (MT) to overweight from neutral at HSBC.
• Bristol-Myers (BMY) to outperform from neutral at Cowen.
• Eaton Vance (EV) to neutral from sell at Ticonderoga.
• Adtran (ADTN) to buy from underperform at BofA/Merrill.

As discerned earlier this fall, Devon Energy (DVN), an independent oil/natural gas company first discussed on May 27, 2009, at a price of $60.89, bottomed at $60, and has since moved smartly to higher ground.

Devon is transforming itself in to a pure onshore exploration and production company and divesting offshore assets. In 2010, Devon's oil sands/shale production will only partially offset natural gas revenue declines, stemming from a soft natural gas market. Devon will spend about $2 billion on shale plays in 2010, hence a high oil price is critical, given the higher production costs associated with oil sands extraction.

Analyst Upgrades

• Goldman upgraded Jones Lang LaSalle (JLL) to buy from neutral.
• Credit Suisse upgraded Pulte Group (PHM) to neutral from underperform. Note that Citigroup downgraded the stock.
• Ameristar Casinos (ASCA) was upgraded to neutral from sell at Merriman.
• Citigroup upgraded Kimco Realty (KIM) to hold from sell.
• Mistras (MG) was upgraded to buy from hold at KeyBanc.
• Devon Energy (DVN) was upgraded to outperform from neutral at Macquarie.
• Garmin (GRMN) was upgraded to outperform from sector perform at PacCrest.

It will be a busy week. Republicans are poised to gain control of the House of Representatives and gain governorships in Tuesday's mid-term elections. Also, the Federal Reserve is expected to announce another round of quantitative easing Wednesday, following the FOMC meeting. Major retailers are scheduled to report October same-store sales Thursday, while the October unemployment rate, announced on Friday, is expected to remain at 9.6%.

Toyota's (TM) fiscal second-quarter results will be one of the highlights on the earnings front this week. After three periods of way underestimating Toyota's earnings, have the analysts surveyed by Thomson Reuters got it right this time? The stock sure could use a boost. Teva Pharmaceuticals (TEVA) is in a similar situation; i.e., high expectations for this week's quarterly results but a stock in need of a boost. Marathon (MRO) and Starbucks (SBUX) are also expected to post strong earnings growth this week, but both stocks are riding high.

Devon Energy Corporation (DVN), an independent oil/natural gas company first discussed here on May 27, 2009 at a price of $60.89, appears to be righting itself after a nearly year-long, incremental downtrend.

Further, Devon is transforming itself in to a pure onshore exploration and production company and divesting offshore assets. In 2010, Devon's oil sands/shale production will only partially offset natural gas production declines, stemming from a soft natural gas market. More-favorable DVN production increases should reappear in 2011.

Further, Devon will spend about $2 billion on shale plays in 2010, hence a high oil price is critical, given the higher production costs associated with oil sands extraction.

The shares of independent oil/natural gas company Devon Energy Corp (DVN), first discussed on May 27, 2009, at a price of $60.89, misbehaved this summer, and the downtrend is a concern.

The company is transforming itself in to a pure onshore exploration and production company and divesting offshore assets. Devon's oil sands/shale production will only partially offset natural gas production declines, stemming from a soft natural gas market. The company will also spend about $2 billion on shale plays in 2010, hence a sustained, high oil price is critical, given the higher production costs associated with oil sands extraction.

Analyst Upgrades

• Canaccord believes growth in DigitalGlobe's (DGI) commercial business will be a catalyst for shares. The firm upgraded shares to buy from hold and has a $38 price target on the stock.
• Standpoint upgraded Abercrombie & Fitch (ANF) to accumulate from hold based on valuation. The firm has a $47 target on the stock.
• Morgan Keegan upgraded Open Text (OTEX) to outperform from market perform based on the company's strong FY2011 EPS outlook.
• Devon Energy (DVN) was upgraded to overweight from equal weight at Morgan Stanley.
• Magna (MGA) was upgraded to outperform from sector perform at RBC Capital.
• EnCana (ECA) was upgraded to outperform from neutral at Macquarie.

After the crunch of quarterly reports over the past two weeks, things will be fairly quiet on the earnings front Monday. Analysts polled by Thomson Reuters expect Allergan (AGN), Loews (L) and Vulcan Materials (VMC) to report higher second quarter earnings, compared to a year ago. Oshkosh (OSK) is anticipated to have swung to a profit from a year-ago loss, and Humana (HUM) is expected to post earnings per share (EPS) about the same as last year.

The crush of quarterly reports is back on come Tuesday, with Coach (COH), Harris (HRS), MasterCard (MA), Molson Coors (TAP), Pfizer (PFE), Priceline.com (PCLN) and Whole Foods (WFMI) among those expected to post earnings growth. The highlight of the day though may be Parker Hannifin's (PH) fiscal fourth-quarter results.

Analyst upgrades:

• Keefe Bruyette upgraded Goldman Sachs (GS) to Outperform from Market Perform with a $190 price target following the company's Q2 results. The firm believes the company's settlement with the SEC removes an overhang on shares.
• Stifel Nicolaus upgraded Health Care REIT (HCN) to Buy from Hold based on valuation and added shares to the Stifel REIT Income List. The firm has a $47 target on the stock.
• FBR Capital upgraded Annaly Capital (NLY) to Outperform from Market Perform citing the company's surprise dividend increase. The firm has a $20 target on the stock.
• Devon Energy (DVN) was upgraded to Overweight from Equal Weight at Barclays.
• Overseas Shipholding (OSG) was upgraded to Overweight from Underweight at JP Morgan.
• Cintas (CTAS) was upgraded to Neutral from Underperform at Baird.

The stock of independent oil/natural gas company Devon Energy (DVN), first discussed on May 27, 2009 at a price of $60.89, has exhibited a range-bound pattern for the better part of six months, but I still like the shares. Here's why:

In the fall 2009, Devon announced a strategic restructuring in which it will divest its Gulf of Mexico and international assets, and focus on high-growth North American onshore assets.

Tuesday morning, Tudor Pickering Holt decided to upgrade Devon Energy (DVN) to accumulate, noting that the company is a "cash-rich company with solid-but not-outstanding assets that trades at a discount." The brokerage house believes that Devon will issue a $3 billion share buyback program, leading to the upgrade.

The company is the largest producer and largest lease holder in the Barnett Shale area of North Texas, and has exploration and production assets in North Texas, Oklahoma, Wyoming, and western Canada. The company's impressive success rate and substantial assets suggest that the company will continue to perform well.

Thursday morning, it was announced that British petroleum firm BP (BP) will pay $7 billion for a group of Brazilian assets held by American firm Devon Energy (DVN). In exchange, Devon will receive half of BP's Kirby assets in Alberta, Canada for $500 million.

BP believes the its entry into Brazil will "add a major position in another attractive deep-water basin." BP will dish out $7 billion for interests in 10 exploration blocks in Brazil, 240 leases in the U.S. Gulf of Mexico deep water, and a nearly 6% stake in an Azerbaijan development. As a result of the deal, BP will have complete control of the Kaskida field in the Gulf of Mexico.

U.S. stock futures fell slightly Thursday ahead of weekly jobs data and after a report on rising Chinese inflation.

Investors mostly worried Thursday China may have to begin tightening its policies after a report released Thursday showed faster-than-expected inflation, while growth remained rapid and capital investment heavy. The consumer price index rose 2.7% in February from a year earlier, accelerating from a 1.5% increase in January's CPI. MarketWatch reports analysts had estimated a 2.4% rise. The stimulus measures the government has enacted in light of the global economic recession may have to be withdrawn.