Ah, an upgrade of an old favorite of mine. Marvel Entertainment (NYSE: MVL). I've owned this one in the past. Never lost money on it. I'd like to be back in Marvel. Only one problem.

Yesterday, Marvel, a company whose comic library competes with Time Warner (NYSE: TWX) and its own stable of superheroes, received an upgrade from JPMorgan. It now is in the Overweight camp. Before, it was merely Neutral. As you might expect, the stock reacted. There was no way the market was going to ignore this because, really, Marvel is one of those stocks that does show a lot of promise considering that the sequel to Iron Man is due out next summer. Shares closed over 5% higher on Wednesday in reaction to the headline. The professional traders must loved the action.

According to reports, both PepsiCo (NYSE: PEP) and Pepsi Bottling Group (NYSE: PBG) received an upgrade from Stifel Nicolaus. Both are now placed in the "buy" category. I'm sure the companies are happy to be away from the depressing "hold" moniker. The price targets on Pepsi and Pepsi Bottling Group are $64 and $37, respectively. As of this writing, Pepsi was priced at $54.82 while Pepsi Bottling Group's last bid was $33.71.

As can be seen, if Stifel Nicolaus turns out to be right, then traders might have a winning transaction on their hands. But one thing that must be remembered is the arbitrage game going on here. Pepsi wants to buy Pepsi Bottling Group. The latter is, of course, arguing for a higher purchase price.

Sina (NASDAQ: SINA - option chain) shares are rising today after the company was upgraded by Deutsche Bank from Sell to Hold with a price target of $31. This action comes even though Deutsche thinks that Sina's deal for Focus Media Holdings (NASDAQ: FMCN) is getting more likely to fall through. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on SINA.

SINA opened this morning at $30.22. So far today the stock has hit a low of $30.09 and a high of $32.60. As of 11:35, SINA is trading at $32.42 up $2.42 (8.1%). The chart for SINA looks bullish.

This morning, Goldman Sachs felt it prudent to up its view of the U.S. auto sector to Attractive from Neutral. The brokerage stated that it would use any current weakness as an opportunity to build positions. If, like me, you are questioning Goldman's strategy, the firm explained, "Despite the significant rally in auto shares since the February lows, we think we are still in the middle phase of a cyclical rebound in the auto sector."

In its note to clients, Goldman Sachs predicted, "improved affordability, improving confidence and significant pent-up demand as likely to offset the impact from gas prices and deliver significantly more upside in the space as auto sales gain momentum."

Netflix (NASDAQ: NFLX), a DVD-rental business that competes with Blockbuster (NYSE: BBI), was upgraded yesterday by Michael Pachter, an analyst with Wedbush Morgan Securities. He sees good tidings ahead for the company. He believes that Netflix will see higher margins and a healthy stream of earnings. His thesis centers on the fact that the subscriber base is likely to grow and that streaming movies will lower the cost of delivery.

Upgrades are tricky beasts. Ideally, an investor or, more likely, a trader, wants to be in the stock before the upgrade occurs. Buying a company after it's been upgraded requires a lot of due diligence. And you have to get over the fact that you might be buying at a high price.

OmniVision Technologies, Inc. (NASDAQ: OVTI) stepped into the earnings spotlight last night, with the company reporting a fourth-quarter loss of $20.1 million, or 40 cents per share.

Excluding items, the quarterly loss would have been 30 cents per share. Revenue for the period fell 47% to $89.1 million, while gross margin contracted from 27.2% to 17%. Analysts were expecting a wider loss of 46 cents per share on slimmer revenue of $68.3 million.

Looking ahead, OVTI expects a fiscal first-quarter adjusted loss of seven cents to 16 cents per share, with revenue ranging between $90 million and $100 million. The forecast was unexpectedly upbeat; analysts surveyed by Thomson Reuters are expecting a first-quarter loss of 23 cents per share on $74 million in revenue.

This morning, brokerage firm Morgan Stanley issued an upgrade to Apple (NASDAQ: AAPL), lifting the tech giant to Overweight and upping its target price to $180 from $105. Morgan Stanley feels that Apple is a clear leader in the world of mobile Internet and that the iPhone will drive the company's earnings growth over the next two years.

The brokerage's analyst noted, "The core of our stock call is that the iPhone's success and higher margins will begin to mute the fundamental margin and growth risks in Apple's core Mac/iPod businesses."

On October 3, the shares of Apple Inc. (NASDAQ: AAPL) dropped below the $100 mark for the first time since May 2007. In fact, the stock dropped last Friday to a new 52-week low of $85, representing a 19-month nadir for the iPhone parent. Today, this price plunge served as the catalyst for a valuation-based upgrade from Bernstein.

In a note to clients, Bernstein boosted its rating on AAPL from Market Perform to Outperform, and said that its "longer-term growth story remains intact." Analyst A.M. Sacconaghi added, "Investors appear to be valuing Apple on an earnings multiple, rather than on cash flow, which fundamentally undervalues the company given the huge deferred revenue growth associated with the iPhone."

Specifically, the brokerage firm estimates that the iPhone itself could add between $2.25 and $3.40 per share to cash flow above earnings in fiscal 2009.

However, following the stock's recent free-fall down the charts, Bernstein was forced to trim its price target on AAPL from $175 to $135. Credit Suisse followed suit, slashing its price target on the equity from $200 to $135. Despite today's gain of about 7% amid a massive rally in U.S. stocks, Apple shares could be vulnerable to more price-target cuts during the near term. Thomson Financial pegs the average 12-month price target at $176.33, a lofty premium of 82% to Friday's close at $96.80.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.

On a day when many telecom stocks were hit with downgrades, China Mobile Limited (NYSE: CHL) distinguished itself this morning by scoring an upgrade. Goldman Sachs raised its rating on CHL from "sell" to "neutral," while simultaneously trimming the stock's price target from HK$95 to HK$90. The price-target cut echoes a similar move made by Citigroup on Sunday; the brokerage firm cut its target on CHL from HK$120 to HK$100.

In response to today's mixed analyst comment, CHL is down more than 7% at midday. The equity has shed about 42% year-to-date, and its lengthy decline could prompt additional price-target cuts during the short term. According to Thomson Financial, China Mobile shares are trading about 60% south of their average 12-month price target of USD $81.01.

Today's upgrade from Goldman comes as CHL is approaching former support at the $44 level. This region buoyed the stock in early 2007 and earlier this month, which suggests that it could once again provide a floor for the shares. Unfortunately, though, the stock is also looking up at stiff technical resistance from its 10-week moving average, which means China Mobile might find itself bouncing sideways in the weeks to come. Or -- even more troubling -- a continued drop in the share price could spark an unwinding of widespread optimistic sentiment.

Evergreen Solar, Inc. (NASDAQ: ESLR) plunged to an all-time low of $3.30 on Tuesday, thanks to the widespread ripple effect caused by Lehman Brothers' bankruptcy filing. As Evergreen confessed to a potentially substantial Lehman-related loss, analysts rushed yesterday to hand out price-target cuts. Today, Citigroup bucked the trend by upgrading ESLR from "sell" to "hold."

The bullish note seems primarily based on increased transparency regarding the Lehman situation, as well as a sharp decline in the stock's valuation. In a note to clients, Citigroup clarified, "With ESLR more clearly defining its exposure to a Lehman Bros. bankruptcy, the worst-case scenario is now well-defined . . . these issues appear much better discounted at current levels."

In response to the upgrade, ESLR has added more than 13% today. The shares are trading around the $5 mark, though, which puts them in territory not previously explored since May 2005. The stock's year-to-date loss now totals 75% -- a stomach-churning plunge, for sure, but the stubbornly bullish sentiment among investors suggests that more downside may be in store for Evergreen Solar.

Whole Foods Market (NASDAQ: WFMI) shares are trading higher today after an analyst at Morgan Stanley upgraded the stock to Equal-weight from Underweight, as noted by Eric Buscemi. If you agree with Morgan Stanley and think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on WFMI.

After hitting a one-year high of $53.65 in October, the stock hit a one-year low of $20.18 last week. WFMI opened this morning at $23.27. So far today the stock has hit a low of $22.37 and a high of $24.06. As of 12:45, WFMI is trading at $22.50, up $1.12 (5.2%). The chart for WFMI looks bearish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $19 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 15.6% return in just four weeks as long as WFMI is above $19 at August expiration. Whole Foods would have to fall by more than 15% before we would start to lose money.

WFMI hasn't been below $20 at all in the past year and has shown support around $21 recently. This trade could be risky if the company's earnings (due out on 8/5) disappoint, but even if that happens, this position could be protected by the support the stock might find at its year low between $20 and $21.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in WFMI.

Walgreens (NYSE: WAG) shares are trading higher today after Credit Suisse upgraded the stock to "Outperform," from "Neutral," saying that plans to limit store growth and cut down on spending should lead to better earnings. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on WAG.

After hitting a one-year high of $48.09 in September, the stock hit a one-year low of $31.25 earlier this month. WAG opened this morning at $32.55. So far today the stock has hit a low of $32.26 and a high of $33.48. As of 1:45, WAG is trading at $33.30, up $0.97 (3.0%). The chart for WAG looks bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $30 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in just one month as long as WAG is above $30 at August expiration. Walgreens would have to fall by more than 10% before we would start to lose money. Learn more about this type of trade here.

MOST NOTEWORTHY: Genzyme, Dean Foods and Key Energy Services were today's noteworthy upgrades:

• Citigroup upgraded shares of Genzyme (NASDAQ: GENZ) to Buy from Hold as it sees EPS upside in 2008 and 2009 from the company's three upcoming product launches and improving operating margins. Citigroup raised its target to $91 from $80.
  
• JP Morgan upgraded Dean Foods (NYSE: DF) to Overweight from Neutral citing valuation and expectations for dairy costs to decline.
  
• Banc of America upgraded shares of Key Energy Services (NYSE: KEG) to Buy from Neutral to reflect the company's increasing pricing power and projected margin expansion for well services and growth opportunities in the shale plays. The firm raised its target price to $22 from $18.

OTHER UPGRADES:

• Domtar (NYSE: UFS) was raised to Outperform from Sector Perform at RBC Capital.
  
• Gladstone (NASDAQ: GOOD) was upgraded to Outperform from Neutral at Baird.
  
• JP Morgan upgraded Macy's (NYSE: M) to Neutral from Underweight.
  
• Goldman upgraded Rexam (OTC: REXMY) to Buy from Neutral.

MOST NOTEWORTHY: Symantec, Cardinal Financial and BP Plc were today's noteworthy upgrades:

• ThinkPanmure upgraded Symantec (NASDAQ:SYMC) to Buy from Accumulate based on improved execution, stable growth in core business, and ramping competitive position in some high-growth businesses.
  
• Baird upgraded Cardinal Financial (NASDAQ:CFNL) to Outperform from Neutral based on valuation, the company's favorable credit risk profile in Northern Virginia, and its excess capital position.
  
• Societe Generale raised BP Plc (NYSE: BP) to Hold from Sell as it believes the bad news is priced into shares and earnings could be better than expected.

OTHER UPGRADES:

• Alcatel-Lucent (NYSE:ALU) was upgraded at Merrill Lynch to Neutral from Underperform.
  
• Jefferies lifted Hunsman (NYSE: HUN) to Hold from Underperform.
  
• Teva Pharmaceutical (NASDAQ:TEVA) was upgraded to Overweight from Neutral at HSBC.

AT&T (NYSE: T) shares are trading higher today after an analyst at Bernstein upgraded the stock to "Outperform" from "Market Perform" citing the stocks current valuation. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on T.

After hitting a one-year high of $42.97 in September, the stock hit a one-year low of $32.95 in February. T opened this morning at $34.89. So far today the stock has hit a low of $34.87 and a high of $35.25. As of 12:30, T is trading at $35.10, up $0.83 (2.4%). The chart for T looks bearish and steady, while S&P gives the stock its highest 5 STARS (out of 5) strong buy rating.

For a bullish hedged play on this stock, I would consider an October bull-put credit spread below the $27.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 5.3% return in four months as long as T is above $27.50 at October expiration. AT&T would have to fall by more than 21% before we would start to lose money. Learn more about this type of trade here.