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Pro: These 4 Retailers Could Also ‘Do Buybacks’

Shares of Home Depot popped Tuesday after the company announced plans to buy $1 billion of its own shares. Are other retailers about to do the same?

According to Brian Sozzi of Wall Street Strategies the short answer is yes.

He thinks the Home Depot buyback is just an extension of a trend that began last year with Walmart and Lowe's .

And he’s identified 4 companies that he thinks are most likely to make a similar move. They follow:

Target
Costco
Urban Outfitters
CVS

All the stocks listed above meet the following criteria. They’re lagging relative to peers. They’re being pushed to return cash to the shareholders. But perhaps most important they have lots of cash on the balance sheet.

With all the piles of cash, Sozzi thinks these companies will want to put that money to work.

And he thinks they’ll do it with share buy backs because “there’s no better time than now.” In other words, in the current environment he thinks these 4 companies will find their own stocks, cheap.


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Trader disclosure: On March 29, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Finerman's Firm Is Short (IWM; Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (IJR); Finerman's Firm Is Long S&P 500 Put; Finerman's Firm Is Long Russell 2000 Puts; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm Owns (BAC) Leaps; Finerman Owns (BAC); Finerman's Firm And Finerman Own (BP); Finerman's Firm And Finerman Own (CVS); Finerman Owns (GOOG); Finerman's Firm Owns (JPM), (JPM) Leaps; Finerman Owns (JPM); Finerman's Firm And Finerman Own (MSFT); Finerman Owns (USO); Finerman's Firm Owns (WMT); Terranova is long ( C); Terranova is long (GS); Terranova is long (VRTS); Terranova is long (JPM); Terranova is long (UPL); Terranova is long (MS) ; Terranova is long (PBR); Terranova is long (BAX); Terranova is long (TEVA); Terranova is long (IBM) ; Terranova is long (XOM); Terranova is long (JNPR); Terranova is long (DIS); Terranova is long (CVI); Terranova is long (RSX); Terranova is long (CNQ; Terranova is long (AAPL) puts; Terranova owns (AKAM) calls; Najarian is Long (AAPL); Najarian is Long (BAC) calls; Najarian is Long (BTU) call spread; Najarian is Long ( C ); Najarian is Long (CVS) calls; Najarian is Long (GE); Najarian is Long (JPM) calls; Najarian is Long (MS); Najarian is Long (RIMM) call spread

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
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For Brian Kelly
Accounts managed by Kanundrum Capital are Long (EBAY)
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For Barry Ritholtz
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For Brian Sozzi
**Brian Sozzi does not have disclosures on HD, TGT, COST, CVS, or URBN

For Ed Groshans
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For karen finerman SOT 11/2/10
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For Michael Gambardella SOT 3/29/11
***MICHAEL GAMABARDELLA HAS DISCLOSED FOR: MOLYCORP, AK STEEL, ALCOA, FREEPORT-MCMORAN, U.S. STEEL
J.P. Morgan Acted As Lead Or Co-Manager In A Public Offering Of Securities For (MCP), (AKS), (AA) In Past 12 Months
(MCP), (AKS), (AA), (FCX), (X) Is Or In Past 12 Months Was An Investment Banking Client Of J.P. Morgan
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J.P. Morgan Expects To Recieve/Seek Investment Banking Compensation From (MCP), (AKS), (AA), (FCX), (X) In Next 3 Months
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An Affiliate Of JPMS Recieved Non-Investment Banking Compensation From (AKS), (AA), (FCX), (X) In Past 12 Months
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