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Shopping for Retail Stocks Ahead of Back to School Season

On today's Halftime Report Telsey Advisory's, Dana Tesley, and the traders gave their top picks for this year's back to school shopping season.

Telsey believes there is a "compelling" entry point for L Brands.

"If you want to own a brand, and there aren't many, that can have increased market share even a year from now, I think it's L brands and you don't get a lot of time to buy it down over 20% and it's still going to pay a special dividend in 2016."

J.C.Penney is the firm's top pick in traditional department stores believing that moderate consumers gravitate towards value rather than brand names alone.

"I think I have, overall, a stock [J.C. Penney] that's going to have the best comps in the department store universe", said Telsey.

Trader Joe Terrenova think TJX and Dollar Tree are the names to look out for.

"I think you stay with TJX… Yes the evaluation is high, but the revenue growth consistently comes in strong on a double digit basis. Dollar Tree is trading t historic highs once again. It seems as though that's what the retailer is gravitating towards right now," he argued.

Pete Najarian agrees with Joe Terranova on TJX and also likes Lululemon here.