Grasso said Pulte is the better pick of the two because shareholders can expect a nearly 25 percent return. He said the whole space is doing well as "millennials move out of their parents' basements," and demand increases.
Trader Tim Seymour said DR Horton's impressive earnings release showing "deliveries up 15 percent and new sales up 17 percent" indicates strongth growth for the sector.
Seymour said he likes Pulte, as well. The stock is up 10 percent in the last month.
Guy Adami is long CELG, EXAS, GDX, INTC Adami's wife, Linda Snow, works at Merck.
Steve Grasso's firm is long AGN, BIIB, CHK, COG, CUBA, DIA, FCX, GLD, ICE, KDUS, MFIN, MJNA,MSFT, NE, REGN, RIG, SPY, TITXF, VIRT,WDR, WLL, ZNGA. Grasso is long: CHK, EEM,EVGN, GDX, KBH, MJNA, MON, MU, OLN, PFE, PHM, SPY, T, TWTR. Grasso's children own :EFA, EFG, EWJ, IJR, SPY. No shorts.
Dan Nathan is MCD Feb put. XLI long Feb Put Spread, FXI long Feb Put Spread
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;
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