Best stock trades for rising home sales

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One of the most closely watched leading indicators to gauge the U.S. economy is the monthly pending homes sales number, which came out Monday

Pending home sales, signed contracts to buy existing homes, grew 0.2 percent month-over-month in October versus the 1.0 percent gain economists expected.

Although disappointing compared with the estimates, pending home sales did grow 3.9 percent year-over-year with annual gains for 14 months.

Econoday, a economic indicator news firm, explained the importance of the data release:

"This narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as the pending home sales index which measures home resales, investors can gain specific investment ideas. ... (Home resales) brings a myriad of consumption opportunities for the buyer. Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic 'ripple effect' can be substantial."

Using data from Kensho, a quantitative tool employed by hedge funds to spot historical trends, CNBC Pro found the stocks with the best performance the week after the pending home sales report since 2009: