Intel (INTC) completed its acquisition of McAfee recently, establishing itself as one of the leading security software providers. Around one-third of McAfee's value is attributable to security software for businesses by our estimates. McAfee mainly competes with Symantec (SYMC), Trend Micro, LANDesk Software and Microsoft (MSFT) in this segment and offers products like Endpoint Protection, Data Protection and Mobile Phone Security.

McAfee's market share in global enterprise security software market has been consistently rising over the years mainly because of partnerships with PC makers like HP (HPQ) for small and medium businesses, and the rapid growth of the security-as-a-service market. Increasing smartphone sales has also heightened demand for security against malware threats on mobile devices. McAfee's acquisitions like TrustDigital and WaveSecure in 2010 for developing smartphone security software for enterprise customers is expected to boost its share further.

Symantec (SYMC) is the leader in the security software market and competes with McAfee -- which was recently acquired by Intel (INTC) -- as well as with Computer Associates, AVG, TrendMicro and Kaspersky Labs. Symantec recently released a report in which it noted that cyber attack tool kits have become more accessible and much easier to use. This report followed incidents in December in which credit card giants Visa (V) and MasterCard (MA) were targeted by cyber attacks.

While such cyber attacks are dangerous for businesses and individuals, they create new business opportunities for antivirus software companies like Symantec, as demand for these products increases. We estimate that security software (for both consumers and businesses) constitutes roughly 50% of our $21.36 price estimate for Symantec stock, while storage software effectively makes up the balance. Our price estimate for Symantec stock is about 20% above the current market price.

Analyst Upgrades

• InterMune (ITMN) to outperform from neutral at RW Baird.
• Huntington Bancshares (HBAN) to buy from neutral at BofA/Merill.
• Halliburton (HAL), Cloud Peak Energy (CLD), Patriot Coal (PCX) and Consol Energy (CNX) to outperform from market perform at FBR Capital.
• Post Properties (PPS) to equal weight from underweight at Barclays.
• Airgas (ARG) to overweight from neutral at Piper Jaffray.
• Hologic (HOLX) to top pick from sector perform and Sunesis Pharma (SNSS) to outperform from sector perform at RBC Capital.

Intel Corporation (INTC) is a stock that looks cheap. But the one-year chart isn't so encouraging for investors. In August, I wrote a piece that was, at best, extremely hesitant on the short-term prospects for the equity. Long-term, I'm certainly more bullish; how can you not be on a business like Intel, right?

The shares closed today's regular session at $19.76, which represented a gain of about 1%. The 52-week low for the stock is $17.60, while the 52-week high is $24.37. I'd say that places the market more on the bearish side of the aisle. But the company just reported earnings for the third quarter. What do they tell us about the situation?

The earnings season kicked off last week with better-than-expected results from Alcoa (AA) and Yum! Brands (YUM), while Marriott (MAR) and Pepsico (PEP) met consensus EPS estimates. This week, bellwether companies Intel (INTC), General Electric (GE), Google (GOOG) and JPMorgan Chase (JPM) are scheduled to report their third-quarter results, and analysts polled by Thomson Reuters are looking for earnings growth from all of them.

Santa Clara, Calif.-based Intel announced the acquisition of McAfee and joint ventures with General Electric and Nokia (NOK) during its third quarter. Analysts forecast earnings for that period to come to 50 cents per share, which is up 34.0% from the same period of last year. The number one semiconductor maker's revenue for the three months ended in September is expected to total $11.0 billion, or 17.1% more than a year earlier. Looking ahead to the full year, the forecast thus far is for earnings of $1.94 per share (+44.8%) and $43.3 billion in revenue (+23.4%). The per-share earnings topped analysts' expectations in the past four quarters, by as much as a dime per share.

Analyst Upgrades

• FBR Capital upgraded Pioneer Natural (PXD) to outperform from market perform and raised its price target for shares to $85 from $60. The firm upgraded shares on expectations that returns from the company's Spraberry field will increase materially.
• Baird upgraded Acroda Therapeutics (ACOR) to outperform from neutral based on valuation and a new survey that indicates a strong uptake for Ampyra and improvements on the reimbursement front. The firm has a $40 target on the stock.
• Morgan Stanley upgraded Nokia (NOK) to overweight from underweight based on checks that indicate strong orders and less than expected discounting for its upcoming N8 smartphone.
• GlaxoSmithKline (GSK) and British American Tobacco (BTI) were upgraded to buy from neutral at BofA/Merrill.
• Quality Systems (QSII) was upgraded to outperform from market perform at William Blair.
• Siemens (SI) was upgraded to buy from neutral at UBS.

Analyst Upgrades

• Hudson Square upgraded Take-Two (TTWO) to buy from hold, citing the better-than-expected Q3 report and increased guidance.
• Keybanc upgraded The Buckle (BKE) to hold from underweight given the potential for a special dividend in the near term.
• Stifel Nicolaus upgraded K-Sea Transportation (KSP) to hold from sell, citing KA First Reserve's $100M equity investment.
• Gold Fields (GFI) was upgraded to overweight from equal weight at Morgan Stanley.
• James Hardie NV (JHX) was upgraded to neutral from reduce at Nomura.

Many investors seem to be taking lightly the recent acquisition of McAfee by Intel Corp. (INTC). In fact, they seem bewildered by the move. Why in the world would a maker of chip sets want to own a data security software provider? Let me tell you why.

The days when we subscribed to a third-party service to download those clunky security patches will soon be gone -- and not missed. Those annoying downloads and incessant updates will go the way of the dinosaurs. Intel is preparing for the next generation of data security. Soon your data security will be provided as an integral part of your data handling and communication devices. It will finally be manufactured right into your chip sets. That's the way it should have been long ago.

Let's be honest: it's getting hard to remain bullish on Intel Corporation (INTC). I've been pretty positive on the company so far this year. But we all know how Wall Street can play havoc with the emotions. No matter whether you're a long-term investor or a short-term trader, price action can shake you up.

The chip maker's recent price action has been terrible. Even worse, the fundamentals have to be questioned as well. According to this source, third-quarter guidance took a hit.

Analyst Upgrades

• Goldman upgraded Republic Services (RSG) to buy from neutral and raised its price target to $34 from $32. The firm cites valuation for the upgrade.
• Deutsche Bank upgraded MeadWestvaco (MWV) to buy from hold due to valuation and keeps a $29 price target for shares.
• UBS upgraded Symantec (SYMC) to buy from neutral.
• Lloyds Banking (LYG) upgraded to add from neutral at WestLB.
• Ternium (TX) was upgraded to overweight from equal weight at Barclays.

Bit of a surprise in the tech sector Thursday morning, as Intel (INTC) announced that it will purchase Internet-security firm McAfee (MFE) for the tidy sum of $7.68 billion.

This move comes as a bit of a surprise, as some analysts and investors believe the acquisition shows the importance that computing firms are applying to security. Intel noted that more "elements of our lives have moved online," meaning that security will become a "third pillar of what people demand from all computing experiences." Intel said that the deal "elevates focus on security on par with energy-efficient performance and connectivity." Bottom line: Intel wants to protect customers who are taking advantage of our new online lifestyle.