Walmart could hold the key to the retail rally. Here's why

Retail stocks are on a spree.

They're bouncing off their October lows, some rallying double-digits in the past two weeks as retail earnings kick into full gear. Some top money managers say investors should consider one retail name in particular: Walmart.

Walmart is set to report earnings Nov. 15, and shares of the retailer have bounced 11 percent since their October lows. The broader retail-tracking ETF, the XRT, has jumped 7 percent since its respective low that month.

Mike Binger, president of Gradient Investments, is bullish on Walmart. He pointed to strong consumer data compared with some industrial and housing metrics that have "either fallen off or softened a bit."

"Walmart is executing very well," he said on CNBC's "Trading Nation" on Tuesday. "I think they're competing much, much better on the online segment versus Amazon."

Binger also recommended shares of Home Depot, which he says could be poised for a bounce given the stock's oversold condition.

Some are bullish on Walmart from a technical perspective.

"Walmart looks like a constructive chart. It looks like a nice cup-and-handle pattern forming. Looks like we could see upside to about $110, so a total return opportunity from here close to 10 percent. That's a stock we'd be out buying today," Craig Johnson, chief market technician at Piper Jaffray, said Tuesday on "Trading Nation."

Shares of Walmart closed fractionally higher Tuesday, at $103.33 per share.

Other retail names set to report over the course of the next week include Michael Kors, Nordstrom and L Brands.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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