I can't watch the bewildering underperformance of Boyd and Dropbox any longer, says Steve Reitmeister, editor of Reitmeister Total Return.

Thus, replacing with two quality picks. Overall, these are the trades we will make today:

  • Sell all shares of Boyd Gaming (BYD)
  • Sell all shares of Dropbox (DBX)
  • Buy 7% allocation in Camping World (CWH)
  • Buy 7.5% allocation in Electronic Arts (EA)

Why Buy CWH? Camping was not just a hot trend during covid. The strong sales trends are continuing, as clearly evidenced in CWH's recent 20 cent earnings beat, which has estimates rising higher for this year and next.

Overall, on the POWR ratings, CWH scores a B. Ditto for growth and quality. But what really stands out is the A for value.

Wall Street agrees with an average target of $57, yet we have two analysts who believe $65 is more on the money. Yet, even that sounds light, as it corresponds with a PE under 10.

Shares popped nicely after the earnings beat, but still a tremendous value, which is few and far between these days. So happy to camp out with these shares for a while until they reach fair value.

Why Buy EA? Same idea as ATVI...just better execution. Meaning, we wanted to sidestep the supply chain concerns with a company that mostly sells things from online downloads. Plus, a firm that should do well over the holiday shopping season.

The big difference is that ATVI spoiled their earnings report with lower guidance for the future. While EA rolled out an impressive beat and raise.

Yes, EA looks solid from POWR ratings standpoint with B's for growth, value, sentiment and quality. It is the number two ranked stock in its industry group. Yes, we often want A ratings, but that is reserved for only 5% of the stocks, which mostly get taken up with obscure small caps. Thus, this kind of report card for a large cap like EA is mighty impressive.

Lastly on the value front, Wall Street analysts were impressed by their recent announcement, leading to a slew of target price raises. The average target is about $175, which is a healthy 24% above this morning’s price. However, interesting to note that we have a $180 from Deutsche Bank, $185 from Raymond James, and $200 from Wedbush. This makes the value proposition all the more appealing.

Yes, we still have weekly commentary tonight. Just couldn't bear to watch these two laggards (BYD and DBX) on my screen for another minute. Gladly, I had ample good choices from my stock research over the weekend. So, I have little doubt that CWH and EA will serve us better in the future.

Learn more about Steve Reitmeister at StockNews.com.