Can RadioShack (RSH) make a comeback?

The last time I went to RadioShack (RSH), I remember seeing the RadioShack TRS-80 Model II with Integral 8-inch Floppy Drive:

Ah the good old days.

Earlier this month, Banc of America Securities boosted its rating to buy from neutral, saying the electronics retailer's investment story "is about a new management team that is improving the stores, adding new products and having a highly leverageable cost structure."

RadioShack’s first-quarter profit dropped to $38.8 million, or 30 cents a share, from $42.5 million, or 31 cents, earned in the same period a year earlier.

Talk about a downtrend in the last year:

I’m having a tough time believing BofA Securities on this one. When Americans start receiving their economic stimulus tax refund checks, do you really think they are going to go to RadioShack, or are they going to go to Best Buy (BBY)?

I think it’s a no-brainer. RSH has a forward P/E of 22.91 while BBY is trading at just 13.63 time 2009 earnings. If you want to cash in on those stimulus payments, I think BBY is your best bet.

Disclaimer: The author has no shares of the securities mentioned in this article

Article written by Eric Cheshier

Co-Founder of theStockMasters.com

If you liked this article, Eric Cheshier also contributes to the Master Picks Newsletter and the Quant Method , only available at WallstNewsletters.com.