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

Trading Nation: Retail on a spree

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.