NEW YORK (TheStreet) -- The SPDR S&P Retail ETF (XRT) is up 4% in the past five trading sessions and 9.3% in the past month. The sector ETF climbed 1.3% on Monday as investors remain optimistic headed into the holiday season.
On CNBC's "Fast Money" TV show, Guy Adami, managing director of stockmonster.com, said investors can stay long Michael Kors (KORS) and Kate Spade (KATE) . The stocks are well off the 52-week highs and can rally as long as the market holds up, he reasoned.
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"I wouldn't chase" most retail stocks at this point, said Dan Nathan, co-founder and editor of riskreversal.com. Sales are likely to be high due to promotions, but this will weigh on margins and earnings per share. However, Under Armour (UA) seems poised to break out, he said.
Tim Seymour, managing partner of Triogem Asset Management, agreed buying retail stocks after the big move higher isn't such a great idea. However, some will continue to do well including Apple (AAPL) and Best Buy (BBY) .
Even though Apple is up 25% from its October lows, the stock continues to move higher and that doesn't appear likely to change, Nathan said. Adami agreed, saying Apple seems likely to rally into year's end.
Shares of Gap (GPS) have bounced nicely since reporting somewhat disappointing earnings results on Friday, said Karen Finerman, president of Metropolitan Capital Advisors. The selloff was "overdone," she added, and the stock looks good on the long side.
Adami added that Foot Locker (FL) needs to get back above $60 to be a stock investors can own on the long side. He is also a buyer of Abercrombie & Fitch (ANF) over Aeropostale (ARO) .
SolarCity (SCTY) was upgraded by Ben Kallo, senior research analyst at R.W. Baird, to outperform with an $83 price target. He said investor sentiment is improving and the company can take additional market share next year.
SolarCity's cost advantage and scalability will help it take market share, and its falling acquisition costs will improving profitability. Oil accounts for less than 5% of global electricity, so it doesn't make sense for falling oil prices to weigh on solar stocks, he concluded.