I’m sure you’ve seen videos on Instagram or some other social media site with the “do this, not that” theme.
It could be a workout tip, an investing tip or related to any hobby that you may have.
Or maybe you remember the 2007 book titled “Eat This, Not That.”
It simplified calorie swaps for people and had a whole slew of follow-up books.
Today, I’m looking at the equivalent of that for your portfolio.
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| Source: Amazon |
I headed on over to the Weiss Stock screener and looked at all of the “sell”-rated stocks that were listed on the New York Stock Exchange (NYSE).
I picked three of them that I thought some of you might have in your portfolio and then listed a similar stock that had a “buy” rating.
Let’s take a look:
Buy This, Not That No. 1: Gambling the Day Away
There’s still speculation as to when the economy is going to fully open. But there’s no doubt people are eager to rebook canceled vacations.
I have multiple friends that have decided Las Vegas was going to be one of their first out-of-state destinations.
But gambling stocks aren’t looking so hot. Caesars Entertainment, Inc. (Nasdaq: CZR), MGM Resorts International (NYSE: MGM) and even DraftKings Inc. (Nasdaq: DKNG) are all sitting in “sell” territory.
How can we collect a piece of the inevitable recovery in Sin City?
Look no further than VICI Properties Inc. (NYSE: VICI). It’s a real estate investment trust (REIT) that focuses on experiential properties. It has one of the largest portfolios of gaming, hospitality and entertainment destination real estate. This includes the world-renowned Caesars Palace.
Its properties are leased to the big names in the business including Caesars Entertainment, Penn National Gaming, Inc. (Nasdaq: PENN) and Hard Rock International.
It also owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas strip.
VICI’s REIT status requires it to pass through most of its money to its partners or shareholders. The company currently pays a solid 4% dividend yield, and shares are up 31% year to date. So I’d strongly suggest not buying those “sell”-rated casino stocks above. Instead, I’d collect a dividend from VICI since it has a “buy” rating with more diversified risk.
Buy This, Not That No. 2: Fashion Is Changing
I’ve mentioned the difference between consumer staples and consumer discretionary stocks before. We saw consumer staples benefit highly last year as people needed to prioritize their funds on things they really needed.
Then, as stimulus checks hit, we saw spikes in spending on consumer discretionary goods.
Fashion is in that consumer discretionary category. The pandemic even changed the way consumers look at fashion ... casual and athletic wear took the place of business attire.
Still, a year later, many people don’t need more than a few dress shirts for Zoom calls.
You might think this would be good news for companies such as Nordstrom, Inc. (NYSE: JWM) and Lululemon Athletica Inc. (Nasdaq: LULU). But no, these companies have a “sell” and a “hold” rating, respectively.
I’d suggest selling these two picks. Instead, hold something like Target Corp. (NYSE: TGT), which isn’t a pure clothing play, but has a solid “buy” rating at “B+.”
Or look at The Buckle, Inc. (NYSE: BKE). This company is a retailer of casual apparel, footwear and accessories aimed at young adults. And it’s also currently rated a “buy.” Shares are up 53% year to date, and it pays out a 2.9% dividend.
Buy This, Not That No. 3: Media and Entertainment Is Key
How many streaming subscriptions do you have? I know in my household, we currently have F1, Netflix, Inc. (Nasdaq: NFLX) and Amazon Prime.
But over the past year, we’ve had Disney+, Hulu, HBO and I’m sure some others that I can’t even remember. The Walt Disney Company (NYSE: DIS) really worked hard to stay relevant as theme parks and movie theaters shut down during the pandemic.
It quickly launched its streaming service and continued to create content. But we haven’t given the company a “buy” rating since last February. Right now, it’s sitting at “sell.” Netflix is sitting at “hold.”
Instead, why not look at Comcast Corp. (Nasdaq: CMCSA) or Activision Blizzard, Inc. (Nasdaq: ATVI). Both are rated “buy” right now, and both pay a dividend. Year to date, shares are up 14% and 2%, respectively.
This is yet another reason I love the Weiss Ratings stock screener.
I can quickly look up a particular sector or industry and see the ratings of all included. And then, I can make sure I have the best stocks in my portfolio going forward.
I suggest you do the same.
Best,
Kelly Green
