Several high-profile solar companies recently reported earnings, and although these companies posted mixed results for the most recent quarter, there's no denying that Wall Street has been turning its face toward the sun and bidding up the shares of solar stocks.

So, what's the latest earnings front from stocks in the solar space, and why do the shares of some of the hottest solar stocks continue to shine? More importantly, should you own solar stocks right now, and if so, which ones should you make room for in your portfolio?

In general, I've argued against solar plays, due to the sector's adolescent and volatile status, and against China-based plays, but there have been a few exceptions, and Suntech Power (NYSE: STP) qualifies as one.

It now appears that Suntech will benefit from China's solar subsidy program, as well as U.S. government initiatives to invest in renewable energy. Further, reduced selling prices moving forward should increase demand for Suntech's products.

"The way to win in solar is to invest in the industry leaders and SunTech Power Holdings Ltd. (NYSE: STP) is a big as they come," says growth expert Toby Smith in his ChangeWave Investing.

"China will surpass the US as the world's largest market for wind turbines -- after doubling wind power capacity in each of the last four years.

"Chinese government mandates for cleaner energy are a big factor driving the blossoming wind and solar projects, but other forces are at work, too. Chinese power companies are loaded with cash and state-owned banks are eager to lend them more money.

Today's jobless claims data came in strong enough that we would have expected further recovery, but the fears over all this CIT fallout weighed on investors' minds. Hank Paulson took his grilling. Homebuilders even started sounding less negative again. But then came reports that perma-bear Nouriel Roubini was finally throwing in the towel and showing that the recession would end. His report was what helped traders have comfort in buying stocks at the end of the day.

Here are the unofficial closing bell levels:

Dow 8,709.02 +92.81 (1.08%)
S&P 500 940.54 +7.86 (0.84%)
Nasdaq 1,884.66 +21.76 (1.17%)

Top Analyst Upgrades
Top Analyst Downgrades

Today was one of those market days where you just felt like the stock market was headed lower no matter what. A report from the World Bank showing lower recovery is expected in 2009 and in 2010 did not help. It took the sails out of the commodity sector and therefore out of stocks.

With little economic data to center on, traders just continued the momentum of selling to take profits. We are also seeing a reversal here where now the market needs great news to rally.

Here are today's closing bell levels:

Dow 8,339.01 -200.72 (-2.35%)
S&P 500 893.04 -28.19 (-3.06%)
Nasdaq 1,766.19 -61.28 (-3.35%)

Top 10 Analyst Calls

Today was one of those days where the overall market direction never felt entrenched nor felt certain. The news of ten banks getting to pay back TARP funds created mixed reactions, as the news was expected. Positive guidance from a chip leader may have kept the wheels on the cart for technology stocks. Oil also spent much of the day flirting with the $70 per barrel mark.

With the swings we are seeing from positive to negative, it is just further evidence that there is a battleground between bulls and bears forming. So far the bulls are managing to keep the high ground. Here are today's unofficial closing bell levels:

DJIA
S&P500
NASDAQ

Top Analyst Upgrades
Top Analyst Downgrades

Suntech Power Holdings (NYSE: STP) has priced its follow-on public offering at $12.50 per share. The company will be issuing 20 million American Depositary Shares to raise a total of $250 million. The stock is being issued under an existing shelf registration filing.

Underwriters UBS (NYSE: UBS), Goldman Sachs (NYSE: GS) and Deutsche Bank (NYSE: DB) have an option to purchase up to 3 million to cover any over-allotment.

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

• AnnTaylor Stores Corp. (NYSE: ANN) reported a smaller-than-expected Q1 loss as sales slumped.
• Barnes & Noble Inc. (NYSE: BKS) smaller-than-expected Q1 net loss sent shares higher.
• Children's Place Retail Stores Inc. (NASDAQ: PLCE) solid Q1 results were in line with expectations.
• Dick's Sporting Goods Inc. (NYSE: DKS) posted higher-than-expected Q1 results but same-store sales fell.
• Gap Inc. (NYSE: GPS) lower Q1 earnings beat expectations and lower revenue was in line.

Today felt like one of those slow long pre-holiday trading days where many gainers and losers were seen with low volume. There was no real economic data to absorb and no real earnings reports to pick apart.

That let us only react to a small recovery from the fears that the US could ultimately have the same credit rating fears that were brought up about England yesterday. Here were today's unofficial closing bell levels:

Dow 8,278.04 -14.09 (-0.17%)
S&P 500 887.33 -1.00 (-0.11%)
Nasdaq 1,693.91 -1.34 (-0.08%)

Top Analyst Upgrades & Downgrades

Today was a day marked by selling, partly on economic news and partly on a call from S&P. S&P put the credit bias of the United Kingdom at "negative" from "stable" giving the notion that the nation's Triple-A ranking is possibly at risk to be cut. Then came the implications from Bill Gross and others that the U.S. could ultimately see the same fate. To show how bad the trend and bias was, long-dated Treasuries saw their yields rise as much as 15 basis points today.

A slightly less-bad jobs report failed to catch any attention today. In short, if you are a market bear you are getting more feathers in your cap now that earnings are basically finished. Here are today's unofficial closing bell levels:

Dow 8,291.82 -130.22 (-1.55%)
S&P 500 888.23 -15.24 (-1.69%)
Nasdaq 1,695.25 -32.59 (-1.89%)

Top Analyst Calls

Analyst upgrades:

• UBS upgraded Target (NYSE: TGT) to Buy from Neutral and raised its price target to $52 from $45 citing reduced inventories, some credit stability, and an improved back-to-school period.
• Credit Suisse said concerns regarding Safeway's (NYSE: SWY) price position are overblown and that earnings risk is limited. The firm upgraded shares to Outperform from Neutral and raised the target price to $25 from $22.
• Oppenheimer upgraded Canadian Solar (NASDAQ: CSIQ) to Outperform from Perform as it believes the story is underappreciated following the recent sector rally. The firm has a $14 price target on the stock.
• CME Group (NASDAQ: CME) was upgraded to buy from Neutral at Goldman.
• Freeport McMoRan (NYSE: FCX) was upgraded to Overweight from Neutral at JP Morgan.
• Gilead Sciences (NASDAQ: GILD) was upgraded to Buy from Neutral at FTN Equity.

Analyst upgrades:

• JP Morgan upgraded J.C. Penney (NYSE: JCP) to Neutral from Underweight based on lower input costs, stabilization in home, lower markdown dollars, and valuation.
• Oppenheimer upgraded Novellus (NASDAQ: NVLS) to Perform from Underperform as it believes Novellus' market share has stabilized and that the company is a potential acquisition target. The firm raised its price target to $20 from $9.
• Bernstein upgraded ConAgra (NYSE: CAG) to Market Perform from Underperform citing strength in grains and moderating input costs.
• ConocoPhillips (NYSE: COP) was raised to Buy from Neutral at Goldman.
• China Housing (NASDAQ: CHLN) was upgraded to Buy from Hold at Roth Capital.

Analyst upgrades:

• Keefe Bruyette upgraded AmeriCredit (NYSE: ACF) to Market Perform from Underperform as it believes the company's warehouse facility amendments substantially reduce the risk of bankruptcy in the near term. The firm has a $6 target on the stock.
  
• Thomas Weisel upgraded Suntech (NYSE: STP) to Market Weight from Underweight on valuation following the recent weakness. The firm has a $6 target on the stock.
  
• Banc of America/Merrill upgraded Kohl's (NYSE: KSS) to Buy from Neutral on valuation following the recent weakness and believes the company's guidance is achievable.
• Dr. Pepper Snapple (NYSE: DPS) was upgraded to Buy from Neutral at Goldman.
  
• Digital River (NYSE: DRIV) was raised to Buy from Hold at Deutsche Bank.
  
• Clorox (NYSE: CLX) was upgraded at Barclays to Equal Weight from Underweight.

Analyst upgrades:

• Baird upgraded Starwood Hotels (NYSE: HOT), Host Hotels (NYSE: HST) and Marriott (NYSE: MAR) to Outperform from Neutral based on valuation and indications that negative sentiment has reached a bottom.
• Citigroup upgraded Torchmark (NYSE: TMK) to Buy from Hold as they find the valuation attractive and think management can grow earnings and book value in 2009/2010. Despite upgrading, the firm lowered their target price to $37 from $45.
• ASM International (NASDAQ: ASMI) was added to Goldman's Conviction Buy List.
• Credit Suisse (NYSE: CS) was raised to Overweight from Equal Weight at Morgan Stanley.
• Live Nation (NYSE: LYV) was upgraded at Natixis to Buy from Hold.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"If there ever was an opportunity to move energy efficiency strategies into the top-tier of national and industrial policy, it's now," says Toby Smith, referring to President-elect Obama's stated focus on renewable energy.

In his industry-leading ChangeWave Investing, which focuses on isolating emerging, long-term investment trends, he states, "The question isn't really if solar companies will benefit, but when." As a favorite idea for 2009, he looks to SunPower Corp. (NASDAQ: SPWRA).

"President-elect Obama seems to be the right person to push energy-efficiency initiatives through -- especially since he is preparing a massive stimulus program that will be unleashed soon after his inauguration on Jan. 20.

"The core of Obama's economic policy appears to be a strategy to transform the United States into an economy mostly powered by renewable and low-carbon energy generation by mid-century. This includes everything from solar to natural gas to nuclear.