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Best Retailers to Buy for Holiday Season: Pros

Thursday, 29 Nov 2012 | 1:18 PM ET

Among retailers poised for a profitable holiday shopping season, several names look to stand out in the sector, Durban Capital's Steve Kernkraut said Thursday on CNBC.

"Even though the department stores were all negative today, a lot of the apparel retailers were positive — 5, 10 percent — so I think that's a positive sign," he said on "Fast Money."

Also, an extra weekend in December would help retailers' comparable sales, he added.

Kernkraut revealed his best-in-class picks.

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SPDR SPRET
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"American Eagle and Chico's both had strong sales, and their inventories are very tight, so I think that you're going to get a benefit there," he said. "Additionally, I like TJX in terms of the off-price retailers. They're getting a lot of benefit from a lot of the debacle that Penney is going under."

Kernkraut was wary of luxury names like Tiffany .

"If any consumers are watching this 'fiscal cliff,' it's really the luxury customers. It's not the American Eagle customers," he said. "The American Eagle customers think 'fiscal cliff' is really a rock-climbing event."

Holiday Shopping to Lift These Retailers: Pros
A few retail names still have room to run this holiday season, says Durban Capital's Steve Kernkraut and the "Fast Money" pros.

Rosecliff Capital's Mike Murphy said that he was adding to positions in Target and Macy's .

"We know they were affected heavily by Hurricane Sandy," he said. "I'm going to give them the one-pass this time. I think you buy them on a dip and look for them to take out new highs."

Joe Terranova of Virtus Investment Partners liked two online names.

"Amazon and eBay are insulated to the problems that affected Sandy," he said. "When you're looking pure retail itself, I own half the position in TJX and then Limited Brands — Victoria's Secret — continues to work."

OptionMonster.com's Jon Najarian liked TJX, too.

"I like picking this up on any dips toward $42," he said. "Mid-January to the end of January this stock'll be close to $50."

Written by Bruno J. Navarro, CNBC.com Producer.

Trader disclosure: On Nov. 29, 2012, 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 AAPL; Jon Najarian is long JPM; Jon Najarian is long FB; Jon Najarian is long GOOG; Jon Najarian is long TJX; Jon Najarian is long JCP; Jon Najarian is long EXPE; Jon Najarian is long MA; Jon Najarian is long YUM; Jon Najarian is long RGR; Jon Najarian is long GT; Jon Najarian is long STSI; Jon Najarian is long GLUU; Jon Najarian is long CME; Jon Najarian is long CBOE; Mike Murphy is long AAPL; Mike Murphy is long BAC; Mike Murphy is long TGT; Josh Brown is long AAPL; Josh Brown is long WFC; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long V; Josh Brown is long MA; Joe Terranova is long VRTS; Joe Terranova is long TJX; Joe Terranova is long AAPL; Joe Terranova is long SWN; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long VZ; Joe Terranova is long XOM; Dennis Gartman is long Gold in Yen Terms.

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