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Traders discuss how to trade the major retailers

A customer shops at the opening of TJ Maxx's 1000th store in Washington, DC.
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A customer shops at the opening of TJ Maxx's 1000th store in Washington, DC.

As multiple retail companies report earnings this week, the "Fast Money" traders shop around the sector for the best retail stocks to trade.

Trader Brian Kelly said he likes TJX Companies because the retailer's brick-and-mortar stores provide a customer experience that encourages shoppers to visit its locations.

Trader Guy Adami said he likes Home Depot because of the company's improving operating margins, comparable store sales and valuation. The home improvement chainbeat analyst estimates' in its fourth-quarter earnings report on Tuesday.

Trader Karen Finerman said the entire retail sector should be trading higher. Finerman said Foot Locker is her largest holding in the space.

The Spdr S&P Retail ETF is up 7 percent in the last 12 months.

Disclosures:

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

Karen Finerman is long AAL, BAC, BAC short calls, C, DAL, FB, FL, GLMP, GOGO, GOOG, GOOGL, JPM, URI, LYV, KORS, KORS calls, KORS puts, MA, SEDG, SPY puts, TACO, WIFI long call spreads. Her firm is long ANTM, BAC, C, C calls, FB, GOOG, GOOGL, JPM, JPM calls, KORS, LYV, MOH, PLCE, SPY puts, WIFI, her firm is short IWM, MDY. Karen Finerman is on the board of GrafTech International.

BRIAN KELLY is long Bitcoin, SLV

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; 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