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Trading the consumer: 7 stocks to watch

Trading the consumer: 7 stocks to buy
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Trading the consumer: 7 stocks to buy

Amid sluggish retail spending in the United States, "Fast Money" traders looked for stores where consumers have opened their wallets.

Retail sales rose by 0.1 percent in September and fell 0.1 percent excluding autos, gasoline and building materials. Despite the consumer uncertainty, home improvement retailers Home Depot and Lowe's have surged ahead of broader markets this year.

"I think people are putting some of the dollars that they would put into other retailers into their homes," said trader Karen Finerman.

A Home Depot with a customer at a location in Torrance, California.
Getty Images

Home Depot and Lowe's have climbed about 19 and 8 percent, respectively.

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Other traders looked for where shoppers are spending freely on food and beverages. Shares of coffee chain Starbucks have soared more than 50 percent this year, and trader Pete Najarian believes the strength will continue as Starbucks ramps up mobile technology and delivery services.

Eaters may be moving from casual to fast-food restaurants, which benefits McDonald's and Wendy's, said trader Tim Seymour. McDonald's shares have climbed about 20 percent this year.

He also sees upside in Yum Brands despite recent headwinds in China.

Read MoreYum Brands plans to separate China business

Trader Guy Adami added shares of department store Macy's may be oversold. The stock has fallen about 26 percent this year.

Disclosures:

Tim Seymour

Tim Seymour is long AAPL, BAC, CLF, DIS, F, FCX, GE, GM, GOOGL, INTC, JPM, KO, LGF, T, VRX Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX, YHOO.

Pete Najarian

Long AAPL, AMAT, BAC, BMY, BP, CSX, DIS, DISCA, DKS, FOXA, GE, KKR, KO, MRK, PEP, PFE, PHM he is long calls AAPL, ABX, AGN, BEE, COP, DAL, ETFC, FIT, FL, GPRO, JOY, LM, MAS, MPEL, MRK, PBR, PFE, SLV, UA, UAL, UPS, WYNN, VZ, ZIOP, he is long puts EWW, FCX, MRO, TSLA

Karen Finerman

Karen is long BAC, C, FINL, FL, GOOG, GOOGL, JPM, KORS, KORS call spreads, M, URI, she is short SPY, Her firm is long ANTM, AAPL, BAC, C, DIS, FINL, FL, GOOG, GOOGL, GPS, JPM, KORS, KORS call spreads, M, M calls, M call spreads, SUNE, SUNE call spreads, URI, URI long puts, her firm is short IWM, SPY, MDY, USO, Karen Finerman is on the board of GrafTech International.

Guy Adami

Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.