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Traders weigh opportunities in retail as temperature, sector drops

An employee gives a customer U.S. dollar banknotes while completing a purchase at a Wal-Mart Stores Inc. location in Burbank, California.
Patrick T. Fallon | Bloomberg | Getty Images
An employee gives a customer U.S. dollar banknotes while completing a purchase at a Wal-Mart Stores Inc. location in Burbank, California.

The "Fast Money" traders debated which opportunities were best in the retail sector after the key ETF fell about 1.8 percent on Monday.

Trader David Seaburg said Dick's Sporting Goods and Burlington Stores stand to see strong sales growth this quarter. He also said that Wal-Mart is a good stock to hold going into the end of the year, as he believes it will outperform, especially as the weather gets colder.

Trader Brian Kelly disagreed. He argued that Wal-Mart will see its costs go up as inflation looms and wages rise.

Nordstrom is one retail stock that trader Guy Adami thinks has rallied too far, too fast. The stock has surged 16 percent in the last three months. He added that the "valuation doesn't make any sense." Adami argued that Nordstrom and Macy's both have more room to fall.

Disclosures:

TIM SEYMOUR

Tim Seymour is long ABX, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB, FCX, FXI, GM, GOOGL, GE, INTC, LQD,MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA, SQ,T, TWTR, VALE, VZ, XOM, short: EEM, SPY, XRT. His firm is long ABX, BABA, BIDU, CBD, CLF, EEM, EWZ, F, KO, MCD, MPEL, NKE, PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG, HYG, IWM.

BRIAN KELLY

Brian Kelly is long Bitcoin, APA, silver futures, EWC, GDX, SLV, TLT, U.S. 30-year Treasury bonds. He is short the euro.

DAVID SEABURG

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

GUY ADAMI

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc. eaburg and Cowen have a financial interest in EDIT. An employee of Cowen and Company, LLC serves on the Board of Directors of Diamond Offshore. EXPE, VA – Not Approved.