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Rotate Out of Retail Into This: Pro

Monday, 13 May 2013 | 1:05 PM ET
Rotate Out of Retail Into This: Pro
Monday, 13 May 2013 | 12:22 PM ET
After better-than-expected retail sales results, it's time to get out of retailer stocks and into a couple of sectors with strong potential, Erin Gibbs of S&P Capital says.

After better-than-expected retail sales results, it was time to get out of retailer stocks and into a couple of sectors with strong potential, S&P Capital CIO Erin Gibbs said Monday.

"For a lot of them, I see them being just as good as buying an S&P 500 ETF, and so we're looking for more of companies that have a little more valuation and potential growth going forward," she said.

(Read More: April Retail Sales Get Lift From Autos, Construction)

On CNBC's "Fast Money," Gibbs said that the retail sector had seen "really nice results in the first quarter" but added that consumer discretionary stocks had run out of much of their outperformance steam.

"What we're not expecting is great comps going forward for the rest of the year," she added.

Gibbs, who holds an S&P 500 year-end target of 1,650, said that technology and financials were the next sectors to watch.

(Read More: Expect JCP 'Train Wreck': Pro)

"That's where we still see potential value," she added. "Although tech doesn't look so great for this year, 2014 they have one of the highest growth rates right now for earnings, and they're clearly not valued there."

Gibbs said that she liked such names as Western Union and KLA-Tencor, as well as real estate investment trusts Avalon Bay and Boston Properties for the second half of 2013.

Trader disclosure: On May 13, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long DNR CALLS; Jon Najarian is long OC CALLS; Jon Najarian is long UVXY CALLS; Jon Najarian is long ZNGA CALLS; Jon Najarian is long XLY CALLS; Jon Najarian is short GLD; Jon Najarian is short BKS; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long JPM; Stephanie Link is long CSCO; Stephanie Link is long FB; Simon Baker is long AAPL; Simon Baker is long BAC; Simon Baker is long YHOO; Simon Baker is long FB; Simon Baker is long MSFT; Simon Baker is long GOOG; Simon Baker is long EBAY; Simon Baker is long NFLX; Simon Baker is long GLW; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long SPLK; Joe Terranova is long LNKD; Joe Terranova is long TBT; Joe Terranova is long SWN.

  Price   Change %Change
S&P 500
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WU
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KLAC
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BXP
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