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Attention shoppers, these retailers are buys

Thursday, 5 Sep 2013 | 1:55 PM ET
Buy these 3 retailers, really?!!
Thursday, 5 Sep 2013 | 12:40 PM ET
Find out why HSN and two other unexpected retailers are the top plays from retail analyst Neely Tamminga of Piper Jaffray.

Even if you hate home shopping, Neely Tamminga of Piper Jaffray says you should watch HSN.

The stock, that is.

Tamminga expects it to climb significantly higher.

She tells CNBC's Fast Money pros she's bullish on HSN because her proprietary research shows shoppers are moving away from smaller ticket discretionary items and instead they're buying home furnishings.

Huh? Doesn't HSN mostly sell smaller items such as clothing or candles?

Yes, but what many people don't know is that HSN Inc. operates in two segments HSN and Cornerstone.

And Cornerstone operates extremely popular home brands including Frontgate, a catalog and website seller of indoor and outdoor furniture. "In fact, 30% of sales come from the division that owns the catalog titles," Tamminga explained.


Daniel Allan | Photodisc | Getty Images

Therefore, because she expects the trend of home furnishing to remain strong, she thinks HSN is a buy.

And if you're looking for other ideas, the top analyst also says look at Restoration Hardware as a play on the same theme.

Top trader Joe Terranova agrees. The chief market strategist for Virtus said, "I think there's a great deal of pent up demand for these kinds of items," he said. That is, Terranova believes people refrained from buying more expensive items over the past few years because of concerns about the economy.

However, he thinks those concerns have started to ebb and therefore he's a buyer of Pier 1 and Bed Bath & Beyond.

Trader Josh Brown, author of The Reformed Broker blog, also agrees. However, he prefers playing the theme with a long position in Lowe's. "I think the stock is underowned – I expect to see them grow 10-15% over the next 5 years – and I don't think the valuation is accurately pricing it in," he said.

Trader Stephanie Link, director of research at TheStreet, also likes retail. However she's bullish on Costco. "That company reported a great number," she said. "And I still like TJX."

Trader disclosure: On September 5, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long GS; Joe Terranova is long MS; Joe Terranova is long OXY; Joe Terranova is long HOS; Joe Terranova is long HAL; Joe Terranova is long APC; Joe Terranova is long SNDK; Joe Terranova is long SBUX; Joe Terranova is long TRIP; Joe Terranova is long SJM; Joe Terranova is long CXO; Jon Najarian is long AAPL; Jon Najarian is long JPM; Jon Najarian is long BBRY; Jon Najarian is long FB; Jon Najarian is long GRPN; Jon Najarian is long MU; Jon Najarian is long COP; Jon Najarian is long SVU; Jon Najarian is long CIEN; Jon Najarian is long RKUS; Stephanie Link is long AAPL; Stephanie Link is long WFC; Stephanie Link is long JPM; Stephanie Link is long COST; Stephanie Link is long CSCO; Stephanie Link is long JCI; Stephanie Link is long FB; Stephanie Link is long JOY; Josh Brown is long GOOG; Josh Brown is long AAPL; Josh Brown is long LOW


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