Deutsche Telekom (NYSE:DT) was upgraded to "overweight" from "neutral" at JP Morgan, according to MarketWatch. The financial news site also reports that France Telecom (NYSE:FTE) was upped to "buy" from "neutral" at Merrill Lynch.

Stifel Nicolaus & Co reiterated its "hold" rating on Campbell Soup (NYSE:CPB) ahead of the company annual meeting according to the AP.

Merrill Lynch resumed coverage of Home Depot (NYSE:HD) with an "underperform" rating, according to Briefing.com. The news service also reports that JP Morgan initiated Comcast (NASDAQ:CMCSA) with an "overweight" rating.

Douglas A. McIntyre is an editor at 247wallst.com.

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Bed Bath & Beyond (NASDAQ: BBBY) reported Q1 earnings on Wednesday, and Trey Thoelcke highlighted the numbers in this earnings-recap piece. Shares rose substantially in the after-hours trading session yesterday, jumping over 8%, and as I reviewed various earnings reports last night, I found myself drawn to the retailer's stock performance. I haven't been a huge fan of Bed Bath & Beyond as of late, so I figured I should take a look at the earnings release to see if there's anything here that would change my opinion.

Unfortunately, there isn't. Sales may have grown 6%, and expectations may have been beaten by $0.03, but net income still dropped over 20% to $0.30 per diluted share. Cash flow from operations declined 44% to $65.8 million. And same-store sales were very anemic, rising only 0.8%.

I choose, in this case, to focus on those figures. I also consider the fact that Bed Bath & Beyond does not pay a dividend, and that we are in an awful economic environment, both from a consumer and stock-market standpoint. This is not the stock I'd want to face the recession with, and I don't necessarily find it to be a big value right now. When it comes to retail, I am more likely to look at Wal-Mart (NYSE: WMT) and Target (NYSE: TGT). I'd even consider a Home Depot (NYSE: HD) or a Lowe's (NYSE: LOW). All of these stocks pay dividends and have better brand equities and more attractive prospects. Bed Bath & Beyond certainly didn't deliver an earnings bomb, but I'm still not inclined to put money here.

Disclosure: I don't own any company mentioned; positions can change at any time.

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Because a long, holiday weekend can be a great time to pause and reflect -- to take a step back and look at the bigger picture -- here are some highlights from BloggingStocks a year ago today: May 25, 2007.

• Consumers and investors alike were eager for the launch date of Apple Inc.'s (NASDAQ: AAPL) ballyhooed iPhone.
• Coca-Cola Co. (NYSE: KO) announced its acquistion of Vitaminwater.
• Online retail shopping was on the upswing.
• Dell Inc. (NASDAQ: DELL) planned to begin offering its products at Wal-Mart Stores Inc. (NYSE: WMT).
• Declining new home sales in April signalled more weakness in the housing market.
• Home Depot's (NYSE: HD) new CEO began the 2007 annual meeting with an apology.
• Microsoft Corp. (NASDAQ: MSFT) denied rumors about its interest in acquiring Yahoo! Inc. (NASDAQ: YHOO).
• BloggingStocks speculated about the blue chips of 2017.
• Georges Yared reflected on the state of the market conditions and prospects for the future: Part 1 and Part 2.

And two years ago, May 25, 2006:

• Microsoft admitted that there would be delays in the relase of its Vista operating system.
• Ken Lay and Jeff Skilling were found guilty of defrauding Enron investors.

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

• Activision Inc. (NASDAQ: ATVI) beat Q4 expectations and raised its fiscal 2009 guidance.
• Air France-KLM swung to a loss in the fourth quarter and warned of tough times ahead.
• BJ's Wholesale Club (NYSE: BJ) Q1 earnings soared, beating expectations, and it raised its forecast.
• Canadian Solar Inc. (NASDAQ: CSIQ) beat Q1 estimates on robust demand and favorable exchange rates.
• Foot Locker Inc. (NYSE: FL) Q1 profit declined, hurt by an impairment charge and nearly flat sales.
• Gap Inc. (NYSE: GPS) beat Q1 earnings estimates by managing costs and inventory.
• Home Depot Inc. (NYSE: HD) Q1 earnings tumbled on a one-time charge and the housing slump.
• Intuit Inc. (NASDAQ: INTU) beat Q3 expectations and announced a share buyback program.
• Lenovo Group Ltd. (OTC: LNVGY) Q4 earnings more than doubled on strong global distribution.
• Lowe's Companies Inc. (NYSE: LOW) reported a so-so first quater in line with Wall Street expectations.
• NetEase.com Inc. (NASDAQ: NTES) Q1 earnings declined due to increased tax burden.
• Saks Inc. (NYSE: SKS) missed Q1 earnings estimates but beat revenue expectations.
• Solarfun Power Holdings Co. (NASDAQ: SOLF) Q1 revenue surged 529% from the previous quarter.
• Suntech Power Holdings Co. (NYSE: STP) Q1 revenues soared and earnings more than doubled.

Additional earnings highlights:
Hewlett-Packard, Target, Barnes & Noble, Campbell, Staples and others
Ford, Hormel, Limited Brands, Intuitive Surgical, PetSmart and others

Upcoming results to watch for include Borders (NYSE: BGP), Polo Ralph Lauren (NYSE: RL), TiVo (NASDAQ: TIVO), Big Lots (NYSE: BIG), Costco (NASDAQ: COST), Dell (NASDAQ: DELL), HJ Heinz (NYSE: HNZ), Sears (NASDAQ: SHLD), Lions Gate (NYSE: LGF), and Tiffany (NYSE: TIF).

Visit AOL Money & Finance for more earnings coverage.

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BMC Software (NYSE: BMC) provides software used by large enterprises to manage computer systems and company services. Among the functions addressed are business process scheduling and integration, application and database performance, and recovery and storage management. Customers include Dell (NASDAQ: DELL), Home Depot (NYSE: HD) and Toyota Motor (NYSE: TM).

The company surprised investors last week, when it reported fiscal Q4 EPS of 63 cents and revenues of $466.9 million. Analysts had been looking for 51 cents and $460.3 million. In discussing the successful quarter, the CEO noted client interest in the unified architecture of the firm's suite. Management also guided FY09 EPS to $2.10-$2.20, versus consensus of $2.09. Oppenheimer and Lehman Brothers subsequently reiterated "buy" recommendations on the issue and boosted their price targets to $43.

BMC shares popped on the news and then moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Altogether, brokers now recommend BMC with two "strong buys", four "buys", four "holds" and one "underperform". Analysts see a 16% growth rate, through the next year. The stock's Price to Free Cash Flow ratio (19.66), EPS Growth rate (65.09%) and Return on Equity (30.69%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $24.77 and $39.37. A stop-loss of $32.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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"Which is the better buy among the leading home retailing stocks -- Home Depot (NYSE: HD) or Lowe's (NYSE: LOW)?" asks Charles Payne.

In his Wall Street Strategies, the leading advisor -- and well-known panelist for Fox Business News -- explains, "The debate on which is a better investment, Home Depot or Lowe's, is now at a crossroads following the release of 1Q08 earnings results from each firm.

"As expected, both companies reported year on year earnings decreases as slowing home remodeling spend weighed on comparable store sales.

"Back in 2005-2007, Lowe's was hot the investment choice relative to Home Depot, with many citing its stronger operating margins and friendlier store shopping environment. Although Lowe's is still attracting higher income customers as a result of solid merchandise offerings and customer service, in our view one should crunch the numbers.

"When they do, it will become prevalent that Home Depot is the stronger investment in the niche at this time. The company has been ahead of the game with respect to Lowe's in drastically reducing capital expenditures and store operating outlays.

"Moreover, it has taken the fight back to its smaller rival in the area of customer service and product presentation. In our opinion, play the underdog card and look to invest in Home Depot in upcoming months given more attractive valuation."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

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• DJIA 12,834.95 (-193.21; -1.48%)
• S&P500 1,413.87 (-12.76; -0.89%)
• NASDAQ 2,492.26 (-23.83; -0.95%)
• 10YR-TBond 3.776% (-0.0630)
• 52-WEEK LOWS
• TOP 10 ANALYST CALLS.

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Sometimes one company cannot be discussed without another entering the conversation. The Home Depot (NYSE: HD) reported a 66% drop in first-quarter profit Tuesday, largely due to a one-time charge and continued weakness in the housing market. Only a few days ago, Lowe's Co. (NYSE: LOW) reported sizable losses too.

"Weakness in the housing market" -- in many places that is a gross understatement, since there is no market and they are giving houses away. There are places where home sales have stabilized, and based on April figures it appears that home construction was up when including apartment development. But there are still millions of single family homes and condominiums available at fire sale prices.

Atlanta-based Home Depot said it earned $356 million, or 21 cents a share, in the three months ending May 4, compared to a profit of $1.05 billion, or 53 cents a share, a year earlier. It announced earlier this month that it was putting the brakes on some of its expansion plans and said it would do what was previously unthinkable -- close 15 of its flagship stores. The move, to be completed by July, affects 1,300 employees

As is clear from Battle of the Brands: Home Depot vs. Lowe's, there is much contrast between the two companies but in the end they both address the same market and as long as that market is down their stock prices will find few prospects for growth.

Home Depot closed yesterday at $28.87, 30% off it's 52 week high of $41.19. It has been bouncing around between $25 and $30 a share for the past seven months. Given it's 3% dividend yield, I think it is worth putting on your watch list for a possible buy if it touches "bottom" again.

Lowe's hasn't done any better, closing yesterday at 24.25, 27% off its 52 week high. Lowe's has been below $20 a share and might be a buy if it sees that level again but the dividend yield for this expanding company is not nearly as generous at 0.72%. Even though an argument can and has been made that Lowe's is the better managed company with more growth potential, I still favor HD as an investment.

The dividend is important, in particular because it is only guesswork as to when the housing market will bounce back. In the meantime you are getting a healthy return from a stock that has been beaten down pretty well. The differences between the two companies will be overshadowed by macro economics in the initial stages of a recovery. After that, Lowe's management may make a difference.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I do not own shares of HD or LOW.

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Lowe's (NYSE: LOW) reported Q1 earnings on Monday, and I'm sure a lot of investors looked to this report to see if it indicated how the economy was doing. I hope not too many people were looking to link the economy with the company's numbers, however, because they weren't the greatest.

Top-line sales declined about 1% to $12 billion. Net income dropped 15% to 41 cents per share. Perhaps worst of all, same-store sales plummeted 8.4%. So, with flat revenues and a declining bottom line, was there anything positive about the earnings release? Yes. According to Briefing.com, Lowe's beat expectations by a penny (it did miss on the net-sales number, though). Also, the cash-flow statement shows that the retailer is doing fine in terms of the green. Lowe's generated $2.5 billion from operations this quarter versus $2.1 billion in last year's comparable period. So all is not lost.

But make no mistake, this is a tough environment for Lowe's and its enemy, Home Depot (NYSE: HD). However, if you think you want to get in Lowe's at some point, now could be the time, assuming you are a long-term thinker. The company's shares have bounced off their lows of the year and are still off from their highs. As we all know, the economy will get better at some point, and Lowe's will ultimately benefit. Both Lowe's and Home Depot are not that expensive, in my opinion, and both are probably worth some due diligence.

Disclosure: I don't own shares in any of the companies mentioned here; positions can change at any time.

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Also, the Microsoft (NASDAQ: MSFT) - Yahoo ( NASDAQ: YHOO) saga is far from over with reports now that Microsoft wants to buy Yahoo's search business.

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Earlier this week, Jim Cramer pondered whether the U.S. economy had reached bottom, given such recent signs as stronger-than-expected retail sales and investor interest in homebuilders. In particular, he said he's looking at next week's quarterly results from Lowe's (NYSE: LOW) and Home Depot (NYSE: HD) as a sign for the housing sector and for the potential market rally.

Lowe's is expected by analysts surveyed by Thomson Financial to report second-quarter earnings of 39 cents per share, down 18.8% from 48 cents per share in the same period in 2007, but up 28.2% from 28 cents per share in the previous quarter. The company has provided positive surprises in four of the past five quarters.

North Carolina-based Lowe's is the second-largest U.S. home improvement chain, behind rival Home Depot, and the second-largest appliance retailer after Sears (NYSE: SHLD). In the past year, the company's revenues were $48.2 billion and its net income totaled $2.8 billion. Its long-term EPS growth forecast is 12.7%, which is better than its industry average. The consensus recommendation of analysts remains to buy Lowe's.

The stock is up 9.9% since the beginning of the year, but has fallen 20.5% from a year ago. It trades at a P/E ratio of 13.38. Shares closed Friday at $24.89.

Home Depot is expected to report second-quarter earnings of 37 cents per share, down 22.9% from 48 cents per share in the year-ago period, as well as down 8.1% from 40 cents per share in the previous quarter. The company has tended to fall short of estimates recently, by nearly 7% in the first quarter.

Atlanta-based Home Depot is the largest U.S. home improvement chain, and the second-largest retailer in the U.S. after Wal-Mart (NYSE: WMT). In the past year, Home Depot's revenues were $77.3 billion and its net income totaled $4.5 billion. The company's long-range EPS growth forecast is 11.09%, better than the industry average but a little less than Lowe's. The consensus recommendation of analysts is still to buy Home Depot, but has been inching toward hold.

The share price is up 8.4% since the beginning of the year, but has fallen 24.2% from a year ago. It trades at a P/E ratio of 12.82. Shares closed Friday at $29.10.

Lowe's is scheduled to report earnings Monday morning, Home Depot on Tuesday morning.

For more news that could influence the results, see BloggingStocks' Lowe's coverage and Home Depot coverage.

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

• Applied Materials Inc. (NASDAQ: AMAT) Q2 profits declined on a glut of flash memory chips.
• Bally Technologies Inc. (NYSE: BYI) beat Q3 expectations and offered full-year guidance.
• Barclay's (NYSE: BCS) reported a big Q1 loss on credit-related write-downs.
• Constant Contact Inc. (NASDAQ: CTCT) saw big increases in Q1 revenues and in its customer base.
• Deere & Co. (NYSE: DE) Q2 profits rose on international demand, but results just missed estimates.
• Fluor Corp.'s (NYSE: FLR) strong Q1 results are a signal for the energy sector, says Jim Cramer.
• Freddie Mac (NYSE: FRE) Q1 loss widened on the housing slump, but not as much as forecast.
• IndyMac Bancorp Inc. (NYSE: IMB) narrowed its loss but predicted it wouldn't see a profit in 2008.
• LDK Solar Co. Ltd. (NYSE: LDK) Q1 earnings topped forecasts and it raised its outlook.
• MBIA Inc. (NYSE: MBI) reported a larger-than-expected Q1 loss due to write-downs.
• Mindray Medical International Ltd. (NYSE: MR) beat Q1 expectations and raised its full-year guidance.
• Nuance Communications Inc. (NASDAQ: NUAN) Q2 earnings were in line with analysts' expectations.
• ON Semiconductor Corp. (NASDAQ: ONNN) beat Q1 expectations and raised its Q2 revenue forecast.
• RealNetworks Inc. (NASDAQ: RNWK) beat Q1 estimates and announced share buybacks and a spin off.
• Salary.com Inc. (NASDAQ: SLRY) missed Q1 forecasts, leading to analysts' downgrades.
• Sykes Enterprises Inc. (NASDAQ: SYKE) beat Q1 estimates and raised its Q2 and full-year forecast.
• Syniverse Holdings Inc. (NYSE: SVR) beat Q1 expectations on strength in "messaging and mobil data."
• Toll Brothers Inc. (NYSE: TOL) warned of lower Q2 profits and more "challenging times" ahead.
• Website Pros Inc. (NASDAQ: WSPI) reported flat earnings despite soaring revenues and operating income.

Also, after AIG's (NYSE: AIG) dismal results, International Lease Finance Corp. wants to be spun off from its parent. Analysts see JC Penney Inc. (NYSE: JCP), Kohl's Corp. (NYSE: KSS) and the rest of the retail sector rebounding in the latter half of the year. Jim Cramer ponders some suprising responses to so-so earnings reports, and looks ahead to Lowe's (NYSE: LOW) and Home Depot (NYSE: HD) as a sign for the housing sector.

Other upcoming results to watch for include Campbell Soup (NYSE: CPB), Autozone (NYSE: AZO), Hewlett-Packard (NYSE: HPQ), Intuit (NASDAQ: INTU), Staples (NASDAQ: SPLS), Target (NYSE: TGT), Limited Brands (NYSE: LTD) The Gap (NYSE: GPS) and Barnes & Noble (NYSE: BKS).

Visit AOL Money & Finance for more earnings coverage.

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

• AnnTaylor Stores Corp. (NYSE: ANN) sees Q1 profits beating estimates but reaffirmed the full-year outlook.
• Blockbuster Inc. (NYSE: BBI) beat Q1 earnings expectations but fell short of revenue estimates.
• Electronic Arts Inc. (NASDAQ: ERTS) posted strong Q4 and full-year results on titles such as Rock Band.
• Fossil Inc. (NASDAQ: FOSL) forecast Q1 earnings just a penny below analysts' estimates.
• IMAX Corp. (NASDAQ: IMAX) doubled its Q1 loss and missed Wall Street's expectations.
• JC Penney Co. Inc. (NYSE: JCP) profits fell 50%, and it predicted trouble would continue through the year.
• Kohl's Corp. (NYSE: KSS) posted a smaller-than-estimated Q1 profit decline and cut its full-year outlook.
• Liz Claiborne Inc. (NYSE: LIZ) swung to a Q1 loss on restructuring but beat analysts' expectations.
• Lumber Liquidators Inc. (NYSE: LL) posted strong Q1 results despite the housing slump.
• Macy's (NYSE: M) beat low Q1 expectations despite weak same-store sales.
• Nissan Motor Corp. (NASDAQ: NSANY) Q4 profit surged but it warned of lower profits this year.
• Nordstrom Inc. (NYSE: JWN) posted smaller-than-estimated Q1 profit decline and cut its full-year outlook.
• Priceline.com Inc. (NASDAQ: PCLN) beat Q1 expectations due to increased bookings.
• Sirius Satellite Radio Inc. (NASDAQ: SIRI) posted a narrower Q1 loss in line with expectations.
• Sony Corp. (NYSE: SNE) swung to a Q4 profit but fell short of Wall Street estimates.
• Sprint Nextel Corp. (NYSE: S) beat low Q1 estimates as its loss widened on charges and lost subscribers.
• Tiffany & Co. (NYSE: TIF) projected beating Q1 earnings forecasts and raised its dividend.
• Wal-Mart Stores Inc. (NYSE: WMT) posted Q1 profits up on international growth and bargain shoppers.
• Whole Foods Market Inc. (NASDAQ: WFMI) Q2 profits fell due to the Wild Oats acquistion.
• XM Satellite Radio (NASDAQ: XMSR) reported a bigger-than-expected Q1 loss and a surge in subscribers.

Also, after AIG's (NYSE: AIG) dismal results, International Lease Finance Corp. wants to be spun off from its parent. Analysts see JC Penney, Kohl's and the rest of the retail sector rebounding in the latter half of the year. Jim Cramer ponders some suprising responses to so-so earnings reports, and looks ahead to Lowe's (NYSE: LOW) and Home Depot (NYSE: HD) as a sign for the housing sector.

Other upcoming results to watch for include Campbell Soup (NYSE: CPB), Autozone (NYSE: AZO), Hewlett-Packard (NYSE: HPQ), Intuit (NASDAQ: INTU), Staples (NASDAQ: SPLS), Target (NYSE: TGT), Limited Brands (NYSE: LTD) The Gap (NYSE: GPS) and Barnes & Noble (NYSE: BKS).

Visit AOL Money & Finance for more earnings coverage.

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Lowe's (NYSE:LOW) is expected to report Q1 EPS before the open on May 19. LOW June option implied volatility of 35 is below its 26-week average of 39 according to Track Data, suggesting decreasing price movement.

Home Depot (NYSE:HD) is expected to report Q1 before the market open on May 20. HD June option implied volatility of 32 is below its 26-week average of 36 according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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• The 5 Dumbest Things on Wall Street: May 16
• Toll CEO: Fourth Estate Razes Real Estate

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This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

There are many contrasts between The Home Depot (NYSE: HD) and Lowe's (NYSE: LOW), both of which sell a broad range of tools, fixtures, fittings, garden supplies, and construction materials to do-it-your selfers and professional contractors alike. Home Depot is the original big-box category killer of a hardware store that displaced many a mom-and-pop shop, as well as its predecessors, like Builders Emporium. Lowe's, the new kid on the block has been growing like mad with Home Depot's business in it's cross-hairs.

Both companies have been suffering mightily in the face of the housing slump and the crushing financial markets. Eventually, recession or not, both companies will see their revenues improve as the economy works through it's nightmarish problems.

I have written numerous stories on Home Depot in the past two years, and each time comparisons to Lowe's comes up. Lowe's has not yet had time enough to tarnish its reputation, and Home Depot certainly appears to have misjudged its upstart competitor, as well as recruiting the wrong CEO (Robert Nardelli) and then paying him $200+ million to go away. They have also allowed the stores to become drab and not listened or focused enough on customer or employee issues.

This was beginning to change for the better when the burden of a sagging construction industry expanded.

Home Depot has been trading between a low of $23.77 and and a high of $41.19 over the last 52 weeks with the highs a distant memory. More recently over the past nine months the stock has been hovering around the mid to high 20's.

Lowe's has not been doing much better but has been trading in a tighter range between $19.94 and $33.19, and most recently in the mid 20's.

Both companies have current P/E ratios around 13 and forward P/E ratios projected at 16. This means that based on company projections and Wall Street sentiment Lowe's is not getting any premium based on better growth opportunities. For investors seeking some dividend compensation Home Depot's 3% yield beats out Lowe's 1% yield. In a stagnant market that can be very important but once the market picks up trading 2% yield against a Lowe's faster growth rate might be a mistake.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I do not own shares of HD or LOW.

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