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

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report

  • Jay Yarow, The Business Insider, and Steve Milunovich, UBS, discuss whether Tim Cook is to blame for Apple's drop in growth. I think it's pretty clear they missed the big phone market and overestimated the success of the plastic 5C phone, says Milunovich.

  • CNBC's Eamon Javers reports on Bill Ackman's stake in Allergan. Javers says this is a classic case of insider trading that is not against the rules.

  • FMHR trader Josh Brown thinks Dunkin' Brands looks fantastic technically, while Mike Murphy says investors are questioning the company's massive expansion plans.