Wendy's M&A Menu Heats Up

Editor's Note: In this feature from Stockpickr, we highlight lists of stocks that have been upgraded by analysts or are experiencing activist-investor situations or some other market-moving events.

Rumors of the Day: Since Wendy's(WEN) announced in June that the company's board decided to explore a possible sale of the company, The Wall Street Journal reports, "more than a dozen parties have signed confidentiality agreements and expressed interest in participating in the sale process." Wendy's shares gained $1.14, or 3.5%, to $33.70 in recent trading Tuesday.

Today's Hot List: Lehman Brothers(LEH) reported better-than-expected third-quarter earnings of $1.54 a share, 7 cents higher than the average analyst estimate. Revenue rose 2% from a year earlier. "Despite challenging conditions in the markets, our results once again demonstrate the diversity and financial strength of the Lehman Brothers franchise," CEO Richard Fuld Jr. said. "In addition, more than half of our net revenues for the quarter came from outside the U.S. We remain focused on delivering significant long term value for our clients and shareholders." The stock jumped $2.10, or 3.6%, to $60.72.

Best Buy(BBY) posted second-quarter earnings of $250 million, or 55 cents a share, up from $230 million, or 47 cents a share, a year earlier. Analysts polled by Thomson Financial expected earnings of 44 cents a share. Revenue also rose, to $8.75 billion from $7.6 billion a year ago, exceeding analysts' target of $8.48 billion. The electronics retailer now expects full-year earnings to come in at the upper half of a range of $3 to $3.15 a share. The stock was up 4.9%, or $2.16, at $46.70.