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Traders debate which Dow stocks are poised to break out in 2017

A Nike shoe is displayed in a window at a Nike store in San Francisco.
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A Nike shoe is displayed in a window at a Nike store in San Francisco.

The "Fast Money" traders weighed whether they would buy 2016's worst performers in the DowNike, Coca-Cola and Disney.

Trader Tim Seymour said he would buy Nike based on the company's most recent earnings report, which showed its European and North American sales were recovering.

"Nike's management is some of the best. I think it's an oligopoly with they and Adidas," he said. "I think they will win again after really falling behind over the last couple months."

Between the three biggest laggards, trader Heather Zumarraga said she likes Coca-Cola because it offers a high dividend yield, of about 3.4 percent dividend yield. Disney and Nike yield 1.5 percent and 1.4 percent, respectively.

Trader Michael Khouw ranked the stocks from best to worst as: Disney, Nike and Coca-Cola. Khouw agreed with Seymour that Nike's management team is very good. While the footwear giant's valuation is attractive, he noted that the athletic market is more competitive than it used to be.

"It isn't quite the oligopoly that it once was," he said. "The Under Armours of the world sort of coming in and eating their lunch sometimes, that's part of it."

Khouw also said he thinks Disney is beginning to stabilize, and that Coca-Cola is facing secular headwinds that discourage consumers from buying its products.

Disclosures:

Mike Khouw: None

Heather Zumarrage: None

Brian Kelly: Long TLT, U.S. dollar, UUP, 10-year bond, bitcoin; short euro, Aussie dollar, British pound

Tim Seymour: 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; Tim's 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