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

• Aflac Inc. (AFL) posted better-than-expected Q4 earnings, though revenue fell short, and offered rosy guidance.
• Avon Products Inc. (AVP) posted Q4 earnings growth that met analysts' expectations but shares sold off.
• Cisco Systems inc. (CSCO) higher Q2 earnings topped the consensus estimate but cash flow fell.
• CME Group Inc. (CME) fell short of analysts' Q4 profit expectations, resulting in price-target cuts.
• ExxonMobil Corp. (XOM) posted better-than-expected Q4 earnings and revenue that boosted shares.

Visa (V), a credit card company that competes with American Express (AXP), Discover Financial Services (DFS), and MasterCard (MA), is looking good after the Q1 report, which was released to the market after the bell on Wednesday. GAAP net operating revenue went up 13%. Net income was $1.02 per Class A share, representing a 38% year-over-year increase. According to TheStreet.com, the expectation was for 91 cents.

I simply love this business model. We're a society that is addicted to using credit and debit cards, and Visa takes a little percentage of each transaction. So far, the model is working like a charm. Visa expects prosperous growth in the future, plus a whole lot of free cash flow.

MasterCard Incorporated (MA) is scheduled to take its turn in the earnings spotlight before the market opens tomorrow morning. Analysts surveyed by Thomson Reuters are expecting the credit card issue to report a fourth-quarter profit of $2.46 per share, which would mark a significant improvement over the company's year-ago earnings of $1.87 per share.

While the bar is set pretty high, MasterCard has a solid history of topping consensus expectations -- the company has bested Wall Street's earnings predictions in each of the previous four reporting periods. Despite MasterCard's solid history on the earnings front, though, pessimism is heavy as investors await the firm's fourth-quarter results.

Analyst Upgrades

• Citigroup upgraded Freeport McMoRan (FCX) to buy from hold to reflect valuation, as well as its increased forecasts for copper and aluminum. The firm raised its price target on shares to $95 from $85.
• Citigroup also upgraded Alcoa (AA) to buy from hold and reiterated a buy rating on Cliffs Natural (CLF).
• William Blair upgraded WESCO International (WCC) to outperform from market perform. The upgrade reflects the firm's belief that WESCO's sales trends will become increasingly positive from easy comparisons over the next 12 months.
• RBC Capital upgraded Thomson Reuters (TRI) to top pick from outperform. The firm sees attractive returns over the next 12 to 18 months as the company's headwinds subside, and it raised its target price on shares to $43 from $41.
• Motorola (MOT) was upgraded to hold from sell at Societe Generale.
• American Express (AXP) was upgraded to buy from neutral at BofA/Merrill.
• Schnitzer Steel (SCHN) was upgraded to buy from neutral at UBS.

Analysts surveyed by Thomson Reuters are looking for life insurance giant MetLife Inc. (MET) to report that its earnings rose 80.0% from a year ago to $0.95 per share for the three months that ended in December. Revenue, however, is expected to total $12.6 billion, which is down 10.1% from a year ago, during a fourth quarter in which it offered guidance and declared a quarterly dividend. The analysts' forecast for the full year calls for earnings of $2.89 per share (-25.7%) on $48.3 billion in revenue (-5.3%). This New York-based insurer's earnings results have been better than expected in three of the past four quarters, beating estimates by as much as 20 cents per share.

MetLife's long-term EPS growth forecast is 10.7%, which is better than that of competitor Prudential Financial Inc. (PRU), and its earnings multiple is 8.8x. The First Call consensus recommendation has been to buy MET for more than 90 days, despite a recent downgrade of the stock. The mean price target is $42.87. Shares have been trading between $32.00 and $40.00 since August and closed the week at $35.32.

The stock market and words like "Dow" still strike fear into the hearts and minds of the many who lived throughthe stock market crashes of 2008 and 2009. But the market is on the mend and there are some promising stocks that could become breakout hits for 2010 if investors don't get overly trigger-shy.

Telecommunications and computing stocks are some of the safer bets, but credit and gaming stocks could potentially offer big rewards to the more aggressive investor. So what are my picks for 2010?

The uptrend continues with credit card/payment solutions provider Mastercard Inc. (MA), and it goes without saying that I'm Reiterating my Buy rating for the company's shares, first recommended on April 13, 2009 at a price of $176.06. If you bought MA in April 2009, you're up about 48%.

MA has emerged from the nation's worst recession in more than 25 years in enviable shape, even amid the 'frugal consumer' era that's likely to restrict U.S. consumer spending. Look for transaction growth to continue, as a result of the U.S./global trend toward increased credit card use. Revenue should increase an impressive 8-11% in 2010 after a likely 2-3% increase in 2009.

The first estimates for the holiday shopping season have come in. MasterCard (MA) Advisors unit SpendingPulse, which tracks retail spending, puts the result at a year-over-year increase of 3.6%. This includes all form of payment and does not factor in gas and auto sales. The increase comes relative to the 2008 holiday season, which was the worst season in decades for retailers thanks to the global financial crisis.

Says Kamalesh Rao, director of economic research at SpendingPulse, "Last year the economy and consumer spending were in free fall. This year we're talking about an environment that has stabilized, that has seen a leveling off." But, that doesn't mean it's turned the corner yet. Holiday spending isn't enough to cure what ails us.

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

• Activision Blizzard Inc. (NASDAQ: ATVI) said its Q3 profit declined despite the popularity of Guitar Hero.
• Blackboard Inc. (NASDAQ: BBBB) said Q3 revenue surged and its offered impressive cash flow numbers.
• Boston Beer Co. Inc. (NYSE: SAM) easily beat Q3 earnings estimates and raised its full-year guidance.
• Cisco Systems Inc. (NASDAQ: CSCO) lower Q1 results topped estimates and sent shares higher.
• Cognizant Technology Solutions Inc. (NASDAQ: CTSH) was upgraded following its strong Q3 results.
• Corporate Executive Board (NASDAQ: EXBD) received an analyst's upgrade following the Q3 results.

I've said on many occasions that I prefer MasterCard (NYSE: MA) to Visa (NYSE: V). No, I don't mean the card products themselves. I mean the stocks. I believe Visa has better brand equity associated with it, and I think it possesses a little more depth and fundamental prowess. However, both of these companies operate on the same basic economic model: collect fees on transactions, and don't take on loan risk. So, both MasterCard and Visa do offer compelling long-term investment theses.

And, even though there were some negative outlooks on MasterCard's latest earnings report, which was released Tuesday, I have to say that I didn't find the situation too disturbing. Revenues increased only 2%. The top line was inhibited by currency effects, but it's not like we haven't heard that story before. More importantly, MasterCard posted adjusted income of $3.48 per share, representative of a 40% increase over the adjusted income recorded a year ago.

It's official: the holiday season is here, marking the beginning of the race to the end of the year. It's also time for another FOMC interest rate decision, as well as for another look at the employment situation, perhaps the most dreaded measure of the economic recovery in the U.S. This week will bring the Challenger job cut announcements for October on Wednesday, initial jobless claims for last week and the Monster Employment Index for October on Thursday, and the employment numbers for October on Friday.

The earnings season rolls on this week as well, and analysts surveyed by Thomson Reuters are expecting good showings from the reports of Boston Beer Company Inc. (NYSE: SAM), DirecTV Group Inc. (NASDAQ: DTV), Sara Lee Corp. (NYSE: SLE), Starbucks Corp. (NASDAQ: SBUX), and Whole Foods Market Inc. (NASDAQ: WFMI).

The swiping sound trend continues, which is why I'm Reiterating my Buy rating for MasterCard Inc. (NYSE: MA), first recommended on April 13, 2009 at a price of $176.06. If you bought MA in April, you're up about 26%.

The pleasant story continues at MasterCard: MA has emerged from the nation's worst recession in more than 25 years in enviable shape, even amid the 'frugal consumer' era that's likely to restrict U.S. consumer spending. Look for transaction growth to continue, as a result of the U.S./global trend toward increased use of credit cards in purchases.

Visa (NYSE: V) is one of my favorite businesses on Wall Street. It should be an excellent long-term investment. People will always use branded credit cards, and Visa doesn't take a lot of risk. It simply collects a little of the spoils on each transaction. What a model!

According to TheStreet.com, Visa increased top-line sales by 10% in the fourth quarter, and expanded per-share profit by 28% to 74 cents, excluding certain items. Forecasts were for 72 cents per share.

MasterCard Advisors (NYSE: MA) service SpendingPulse says luxury and electronics sales headed upward last month, in a pleasant deviation from what became the norm all too long ago. A few other product categories posted gains as well – showing stability, if not a recovery. But, at this stage of the game, we'll take what we can get, right?

Luxury sales, not including jewelry, gained 3.4% year-over-year – that's an increase of $891 million. Last September, luxury goods suffered a 9.4% decline. Yet, this category is still below its September 2005 level of $94 million. Jewelry sales gained 1.2% relative to last year, compared to a year-over-year decline of 5.8% a year ago. Compared to apparel sales, this is a profound turn. In September 2008, the clothing category was off 5.7%, and this September, it was down only 2.9%.

I'd venture a guess that you have at least one, if not multiple, MasterCard (NYSE: MA) credit cards in your wallet right now.

In addition to its credit card division, the company provides transaction processing services to its customers that support its credit, deposit access, electronic cash, and automated teller machine payment card programs. The goal of the company is an ambitious one: to put the use of cash out of business.

The stock has certainly been on a tear since its 2006 debut, rising to over $300 per share near the midway point of 2008. Yes, the recession and accompanying customer spending pullback took its toll on MasterCard in late-2008 and early 2009, but despite the tough economic environment, MA shares are up over 50% year to date.