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At 52-Week High, Fast Pros Trade Home Depot


After shares of Home Depot made a fresh 52-week high on Monday, the Fast Money pros couldn’t help but wonder, just how much more upside was left in this stock?

Trader Stephen Weiss is worried. He points to gains in the homebuilder ETF, which is up almost 20% year to date. “The homebuilders have anticipated a massive recovery in homebuilding.”

And the latest data suggests at least some of those gains may be premature.

Although the sector has seen incremental improvements, last year was the weakest for new-home sales on records dating back to 1963. And home prices continue to fall.

Trader Steve Grasso and Brian Kelly see the HD trade a little differently. Grasso thinks one of two scenarios will likely play out and  both should be positive for HD.

“Either Home Depot reaps the benefits of a recovery in housing,” he says, or if housing stalls, Grasso feels people who would have otherwise moved will instead fix up their homes. "And both benefit Home Depot," he says.

Brian Kelly agrees. And in addition to Home Depot, in this space he also likes Lowes as well as USG .


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Trader disclosure: On Feb 13, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian is long AAPL; Najarian is long GS; Najarian is long GOOG; Najarian is long HD; Najarian is long TEX; Najarian is long CME; Grasso is long NUAN; Grasso is long S; Grasso is long XLU; Weiss is long HK; Weiss is long EUO; Weiss is long WLP; Weiss is long UGL; Weiss is long BKU; Weiss is short MT; Weiss is short BTU; Weiss is short AAPL puts; Weiss is short AMZN puts

For Steve Grasso
Stuart Frankel & Co and it’s partners own CSCO
Stuart Frankel & Co and it’s partners own HPQ
Stuart Frankel & Co and it’s partners own MU
Stuart Frankel & Co and it’s partners own P
Stuart Frankel & Co and it’s partners own ZNG

For Brian Kelly
Kelly is long SPY puts

For Colin Gillis
(AAPL) Investment banking (next 3 months): BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report.

Lead or Co-manager: BGC Financial LP and/or its affiliates, has not acted as lead or co-manager in a public offering of equity and/or debt securities for Apple within the last 12 months. BGC Financial LP and/or its affiliates has not received compensation for investment banking services in the last 12 months from Apple.

For Floyd Wilson
No disclosures

For Craig Berger
FBR has received compensation for non-investment banking securities related services from this issuer as a client in the past 12 months: MRVL
As a client of FBR, the issuer receives non-investment banking, securities related services: MRVL.
FBR acts as a market maker or liquidity provider for the company's securities: NVDA, AMD, ATML, BRCM, FCS, INTC, IRF, LLTC, LSI, MRVL, MSCC, MXIM, ONNN, QCOM and SLAB.

CNBC.com with wires.