Updated to note Glen Senk, the former CEO of Urban Outfitters, is currently CEO of Front Row Partners.
NEW YORK (TheStreet) -- Retail stocks were the Tuesday focus on CNBC's "Fast Money Halftime" show. After looking at a variety of earnings reports, Pete Najarian, co-founder of optionmonster.com and trademonster.com, said he is taking a look at Home Depot (HD) - Get Home Depot, Inc. Reporton the long side.
He's already long Lowe's (LOW) - Get Lowe's Companies, Inc. Report but is impressed by Home Depot's top- and bottom-line earnings beat and tempted by the stock's 2% pullback. He also likes Foot Locker (FL) - Get Foot Locker, Inc. Report ahead of its earnings later this week.
Home Depot is "one of the best retailers overall," said Stephen Weiss, founder and managing partner of Short Hills Capital Partners LLC. However, his top pick continues to be Macy's (M) - Get Macy's Inc Report .
Don't forget about athletic wear. Although shares of Under Armour (UA) - Get Under Armour, Inc. Class C Report have had a big move to the upside, there's still more room to go, said Mike Murphy, founder of Rosecliff Capital.
Teen shoppers are doing well, but teen retailers are not, according to Glen Senk, former CEO of Urban Outfitters (URBN) - Get Urban Outfitters, Inc. Report and CEO of Front Row Partners. Urban shares approached two-year lows after disappointing third-quarter earnings. Senk notes that 90% of the company's revenue is from consumers 20 years and older, and that the company's ability to morph itself makes it a worthwhile bet among retailers who target teen consumers. He encourages all retailers "to innovate and be more creative, maybe let the pencil pushers take a backseat to the merchants."
Lower gasoline prices are likely helping teen shoppers as well as customers of DineEquity (DIN) - Get Dine Brands Global, Inc. Report , which owns the Applebee's and Ihop brands, said Josh Brown, CEO and co-founder of Ritholtz Wealth Management.
Target (TGT) - Get Target Corporation Report customers should also benefit from a stronger dollar and lower oil prices, Najarian said. Murphy said another beneficiary is Costco Wholesale (COST) - Get Costco Wholesale Corporation Report .
The strong U.S. dollar is also putting downside pressure on the Japanese yen, accelerating the Bank of Japan's attempt to weaken the currency. Brown says investors can stay long Japanese stocks, particularly the WisdomTree Japan Hedged Small Cap ETF (DXJS) - Get WisdomTree Japan Hedged SmallCap Equity Fund Report .
The long Japan trade has been working well, Murphy said. But if investors have missed the move they should certainly wait for a pullback after the recent rally.
One beneficiary of the lower yen is Toyota Motors (TM) - Get Toyota Motor Corp. Report . However, the positive boost is having a smaller impact on earnings because 70% of what the company sells is built in North America, according to Jim Lentz, the CEO of Toyota North America. He highlighted the company's new hydrogen fuel-cell car, which can drive 300 miles per tank and only costs $30 to $35 to fill. The vehicle will cost $57,500 before incentives and will be available in the U.S. in the fall of 2015.
Every new car needs tires, Weiss said. He likes tire companies, which should benefit from a strong auto market and falling input prices.
The conversation shifted to Apple (AAPL) - Get Apple Inc. Report and Alibaba (BABA) - Get Alibaba Group Holding Ltd. Report and which one investors should own. "I like them both," Weiss said. Apple is his first pick but he acknowledged that Alibaba is likely to perform better headed into year's end.
Apple will be the "must-have stock" for fund managers, Brown said. Shares only trade at 13 times next year's earnings and the stock has some catching up to do after it sat out much of the broader market's bull run over the past two years.
Najarian owns both stocks, but said Alibaba has superior growth and more international potential. Murphy added that Apple has more cash and is a more familiar name for most investors, which may make it a more comfortable pick for some investors.
For their final trades, Najarian is buying Deutsche Bank (DB) - Get Deutsche Bank AG Report and Murphy is a buyer of Ford (F) - Get Ford Motor Company Report . Brown said to buy DineEquity and Weiss is buying Hertz Global Holdings (HTZ) - Get Hertz Global Holdings Inc Report .
-- Written by Bret Kenwell