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Traders: How to play the housing sector

KB Home shares climbed Wednesday after earnings, but some "Fast Money" traders were not sold on the housing sector.

The home builder reported diluted earnings of 14 cents per share on $678.4 million in revenue for its fiscal 2016 first quarter. Sales climbed 17 percent from the previous year.

KB Home shares rose about 7 percent in after-hours trading to around $14 per share. Trader Tim Seymour said the business seems "back on track," adding the stock could top $15 per share.

KB Home is teaming up with the U.S. arm of an Australian company, Nexus eWater, which can recycle 2/3 of the water you use in your home on site.
Diana Olick | CNBC
KB Home is teaming up with the U.S. arm of an Australian company, Nexus eWater, which can recycle 2/3 of the water you use in your home on site.

However, trader Brian Kelly contended the results may not reflect broader trends in the housing space. He said he would "remain bearish in general" on housing.

This week's data may mute some optimism for the sector. Home resales fell 7.1 percent in February to an annual rate of 5.08 million units, the National Association of Realtors said on Monday.

However, the Commerce Department said Wednesday that single-family home sales rose 2 percent to a seasonally-adjusted rate of 512,000 units in February, beating expectations.

Trader David Seaburg said he believes housing will see a recovery.

Disclosures:

Karen Finerman

Karen is long BAC, C, FL, GOOG, GOOGL, JPM, LYV, KORS, M, SEDG, SPY puts, URI. Her firm is long ANTM, AAPL, BAC, C, C calls, FINL, GOOG, GOOGL, JPM, JPM calls, KORS, LYV, M, MOH, NRF, PLCE, SPY puts, URI, her firm is short IWM, MDY. Karen Finerman is on the board of GrafTech International.

Brian Kelly

Brian Kelly is long BBRY, Bitcoin, GLD, GLD puts, SH, SLV, TLT, US Dollar, UUP, Yen; he is short Aussie Dollar, BLK, British Pound, CS, DB, Euro, EWH, FRC, Hong Kong Dollar, UBS, SPY, Yuan, 5-Year Note Futures

David Seaburg

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc

Tim Seymour

Tim Seymour is long AAPL, AVP, BAC, BBRY, DO, EDC, F, FCX, GM, GOOGL, INTC, NKE, SINA, T, TWTR, VZ, XOM. Tim's firm is long BABA, BIDU, CLF, KO, MCD, MPEL, PEP, PF, SAVE, SBUX, VALE, WMT,YHOO, short HYG, IWM.