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) on the long side.
He's already long Lowe's (LOW) 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) ahead of its earnings later this week.
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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) .
Don't forget about athletic wear. Although shares of Under Armour (UA) 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) 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) , which owns the Applebee's and Ihop brands, said Josh Brown, CEO and co-founder of Ritholtz Wealth Management.
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) .
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.