I have been looking at our stock holdings through a fresh lens and will be adding 2 picks that have wonderful upside that adds welcome diversity to our portfolio, notes Steve Reitmeister, editor of Reitmeister Total Return.

We have no energy exposure and that seems like a mistake as the world economy continues to improve which generally leads to higher energy usage. And as I look at the best options for energy APA Corp. (APA) rises to the top for the following reasons:

Our POWR Ratings — our proprietary ranking system — for the stock are strong across the board with B overall, Growth and Value. Yet A for Momentum and the most important category, Quality.

Only 1 earnings miss in 4 years which is very tough in the energy industry. But a clear statement of how well run the company is (which also shows up in the Quality score of A).

The most recent earnings report was a stunning 38% beat which got estimates flying higher for this year and next. This got followed up with AMPLE analyst praise with an average target price of $27.55 which is nicely higher the current price under $20.

Speaking of the current price, note that the entire energy space has seen a pretty stiff correction since early June. In the case of APA the price made it to $24.30 before a massive haircut got heading under $20.

Gladly this downfall is showing signs of being over allowing us both a good entry price and a touch of momentum that should carry shares higher.

Meanwhile, we are a bit light on tech which had me scouring that space looking for stocks that were also decent value propositions. Gladly, one did emerge in Western Digital (WDC), which is crazy given how they are so dominate in storage space.

As you probably know storage/memory is a tremendous growth markets given how the world is getting every more connected...the more memory we need. The most recent 50% earnings beat only proves that point that this is a hot technology space...and WDC is perfectly situated.

And yet, just like we were saying for APA, it has been on the downswing since making a new high of $78.19 back in June. This is what creates a tremendous value proposition as the average target stands at $95 (55% above the current price).

But in the past week you have 2 top analysts thinking that is still not high enough including a $115 target from the analyst at Stifel.

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