Trading retail: Brick-and-mortar names to watch

As a mixed year for retail stocks comes to a close, "Fast Money" traders picked their best consumer bets for 2016.

Some traders would hold on to this year's outperformers. Shares of supermarket chain Kroger have climbed more than 25 percent this year and look appealing after a 3 percent dip Friday, contended trader Tim Seymour.

"This is a name I would be jumping back in on weakness," he said.

Holiday shoppers at Macy's in New York
Getty Images
Holiday shoppers at Macy's in New York

Shares of Home Depot — which have climbed 24 percent this year — could also hold more upside, said trader Steve Grasso.

Other traders believe battered department store chain Macy's could see a recovery after a 47 percent plunge this year. Trader Dan Nathan sees potential for the company's shares to climb amid activist investor involvement and a possible move to monetize real estate.

The stock showed positive signs Friday by closing higher after touching a 52-week low, said trader Guy Adami.

Grasso added that outdoor retailer Deckers could see an "impressive spring."


Tim Seymour

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

Dan Nathan

Long PFE buy-write, Long TWTR March Risk Reversal, Long UUP march calls, Long XLU Feb Call spread, Long PYPL Jan Risk Reversal, Long M Jan16 52.50 / 62.50 call spread, Long NTAP bullish risk reversal, Long GM Jan Put Butterfly, Long QCOM feb calls, Long Len Jan put butterfly

Today: Closed Long IWM Dec Put Spread, Long INTC Dec Put Spread, Long XLF Dec put spread

Steve Grasso

Steve is Long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, KBH, MJNA, MBLY, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long OXY, BP, COP, CVX, FCX, NEM, RIG, kids own EFA, EFG, EWJ, IJR, SPY

Guy Adami

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