It's time to buy the laggards, traders say

The "Fast Money" traders weighed buying lagging stocks in hopes of making profits in a future rally.

Trader Tim Seymour said he likes Macy's and Gap because there is some inherent value left in the stocks.

Trader Steve Grasso said the retailers will make a comeback because he thinks the Mexican border tax proposed by the Trump administration will fall through. He said likes Macy's and Nordstrom in the sector.

Trader David Seaburg said he is staying away from the retail names. Instead, he said he likes Kansas City Southern.

Disclosures:

Guy Adami is long CELG, EXAS, GDX, INTC. Adami's wife, Linda Snow, works at Merck.

Steve Grasso's firm is long: AGN, BIIB, BIVV, CHK, CUBA, DIA, HES, ICE, KDUS, MFIN, MJNA, MSFT, NE, REGN, RIG, SPY, TITXF, WDR, WPX, WLL, ZNGA. Grasso is long: CHK, EEM, EVGN, GDX, KBH, MJNA, MON, MU, OLN, PFE, PHM, QCOM, SPY, T, TWTR. Grasso's children own: EFA, EFG, EWJ, IJR, SPY. No shorts.

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

Tim Seymour is long ABX, AAPL, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB, FCX, FXI, GM, GOOGL, GE, INTC, LQD, MOS, 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