Homebuilder stocks have surged ahead of the broader market this year, and CNBC "Fast Money" traders believe that run should continue.
"I think they can continue to go higher," said trader Tim Seymour on Monday.
Trader Steve Grasso owns both Pultegroup and KB Home and remains bullish on their prospects because they are exposed to first-time home buyers. Home Depot, meanwhile, gathered momentum into its quarterly results Tuesday morning, added trader Guy Adami.
"The housing market seems to play to Home Depot's strengths," he said.
Shares look appealing if they drop after the report, Adami noted, but he doubts they will lose ground.
Trader Dan Nathan looked to the iShares ETF, contending that it looks primed to break out. He would buy it with a stop of $28 per share, about $1 lower than where it closed Monday.
Tim Seymour is long AAPL, T, BAC, DIS, F, GE, GM, GOOGL, INTC, JPM, Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX, YHOO.
Dan is long QQQ sept put, JOY sept calls, TWTR, TWTR sept call spreads, BA sept put spread, COST aug put spread, TJX aug put, SLB aug 28th put spread, MSFT Aug / Nov put spread, GOOGL Sept put spread.
Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.
Grasso is long AAPL, BA, BAC, CC, DD, DECK, EVGN, FIT, KBH, MJNA, MU, PFE, PHM, T, TWTR, GDX. His kids are long EFA, EFG, EWJ, IJR, SPY. His firm and some of its partners are long DVN, AMZN, NE, NEM, OXY, RIG, TSE, VALE