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One under-the-radar retail stock could see massive rally as the sector gets crushed

Retail is getting wrecked, but these stocks could rebound

It's a retail wreck on Wall Street.

Disappointing guidance from Macy's and recession worries potentially dampening consumer appetite over the next year sent the group tumbling Wednesday.

Retail could have further to fall before it finds a bottom, says Bill Baruch, president of Blue Line Futures. He sees the first floor of support at $38 on the XRT retail ETF, 1% below current levels, and another at $35.50, implying 8% downside.

"If that floor of support gets broken, you can be patient and when everybody else is selling and panicking, you can be a buyer down there. I think there is good value down there again at that point at about 30% from the high," Baruch said Wednesday on CNBC's "Trading Nation."

As the retail space gets washed out, Erin Gibbs, chief investment officer of Gibbs Wealth Management, says an under-the-radar stock could break out from here.

"One of the things that I do like within retail is anything that's really selling services rather than your typical apparel goods. So one of the stocks I like is Expedia," said Gibbs. "It's expected to have earnings growth of about 13%, which is double what the industry standard is, and it's also really come down in valuation."

Gibbs said the stock could see 25% upside. That would take it to $158.31, a level not seen since mid-2017.

Baruch favored a far larger retailer, Walmart, which reported an earnings beat Thursday.

"Walmart broke out in June of a trend line and it's coming back in right now. That trend line that it broke out from is now support. And it comes in at $103. The 200-day moving average is also rising and should meet that in coming weeks," Baruch said a day before the earnings report. "There's good value in trading Walmart at $103 at a swing trade at the very least."

Walmart shares gained 5.5% in Thursday's premarket after the earnings report. It needs to fall 8% to reach $103. It traded at that level in early June.