Pro: This stock is set to break out

Macy's reported Q4 earnings on Tuesday coupled with some disappointing guidance, but "Fast Money" and RiskReversal.com's Dan Nathan says now is the time to buy the stock.

The retailer issued cautious guidance for 2015, but once investors had a chance to digest its plan for the year the stock erased its previous losses. In a reversal from its usual cost-cutting ways, the company is now planning on spending more than $1 billion to expand internationally with a focus on off-price stores to target low-end customers.

"Macy's looks poised for a play back up to the previous 52-week highs, it's also the all-time high, just above $68," Nathan says. He added, "Right here at about $63.50 looks like a good long entry." If the stock heads lower, Nathan said that he would stop out at $60, which has been recent support and the stock's 200-day moving average.

Macy's is down about 4 percent so far this year.

Disclosure: Dan is long March 65/67.50 call spread.