Housing Plays That Went Too Far

A few housing-related stocks have seen a run-up that may have gone too far, Mike Santoli of Yahoo Finance said Friday.

"I'm focused on some stocks where the link between a recovering housing market is a little bit tenuous, or it might be looking like it might be fully realized in some of these stocks," he said. "I still think things like regional banks make all kinds of sense as a play, depending on where you are."

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On CNBC's "Fast Money," Santoli pointed out stocks that may have been overbought because of their connections to the housing recovery.

With Best Buy, he said, "the stock already doubled this year, and all of a sudden we're looking at it as a stealth housing play when they have 6 percent of their sales from appliances that could go to 10 percent.

"So that's the kind of thing where I think because people have so bought into the idea that housing recovery in the U.S. is basically the world's one reliable, bankable appreciating growth story, I think we're going a little too far."

Other overstretched housing plays include Jarden, TJX and Winnebago, Santoli added.

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"I do think if you look at things like a Sherwin-Williams, they also have been kind of well-embraced over the last year, year and a half," he said.

"I just feel as if maybe there isn't that direct leverage play, unless it's just the main support and backstop for general consumer improvement, in which case kind of everything in that space becomes a little bit housing play."

Trader disclosure: On May 30, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Mike Murphy is long BAC; Mike Murphy is long INTC; Jon Najarian is long AAPL; Jon Najarian is long JPM; Jon Najarian is long MSFT; Jon Najarian is long CSIQ; Jon Najarian is long NEM; Jon Najarian is long OVTI; Jon Najarian is long AFFY; Jon Najarian is long CLSN; Jon Najarian is long ORPN; Jon Najarian is long TMO; Jon Najarian is long ZNGA; Steve Weiss is long AAMRQ; Steve Weiss is long C; Steve Weiss is long BAC; Steve Weiss is long SODA; Pete Najarian is long AAPL ; Pete Najarian is long BAC CALLS; Pete Najarian is long C CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long MS CALLS; Pete Najarian is long XLF CALLS; Pete Najarian is long CSCO CALLS; Pete Najarian is long YHOO CALLS; Pete Najarian is long BBRY; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long MRK; Pete Najarian is long BMY; Pete Najarian is long AIG CALLS.