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No.1 - Fixer Upper?

Monday, 14 May 2007 | 1:07 PM ET

Few stocks are more closely tied to the housing market than Home Depot (HD) and Lowe's (LOW). Therefore, it comes as little surprise that both stocks are down year-to-date as the rest of the market rallies.

Both retailers are set to report earnings in the next 6 trading days-with Home Depot out on Tuesday and Lowe's the following Monday. Analysts expect Home Depot to say that per-share earnings dropped 15%.

Considering the bullish sentiment in the market, are these stocks the classic fixer-upper or the proverbial a money pit?

The Top Three #1
Trading Home Depot

Karen Finerman says she’s a Home Depot bull. She explains that sentiment is terrible and expectations are low which she thinks presents a buying opportunity. She adds HD has a great balance sheet that’s “way too under-leveraged.”

Guy Adami says he’s a little less bullish on Home Depot because they don’t have great exposure overseas.

Eric Bolling likes Home Depot as a hurricane play. He expects an active storm season.

Jeff Macke sees a lot of upside in Home Depot because of their new CEO.

Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to fastmoney@cnbc.com.

Trader disclosure: On May 11, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders

Bolling Owns (ICE), (NMX),Gold, Silver; Finerman and/or her Firm Owns (BBI), (KBR), (HD), (FLS), (CX), (ASD), (WMT), (TYC), (GS), (INWK); Finerman's Firm Is Short (HAL)

  Price   Change %Change
LOW
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HD
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