'Fast Money' Recap: Where Should You Invest? Some Suggestions

NEW YORK (TheStreet) -- Where should you be investing? That's what the CNBC "Fast Money" trading panel discussed Monday. Here are their top growth plays. 

The housing sector looks poised to go higher, said Pete Najarian, co-founder of optionmonster.com and trademonster.com. Mortgage rates are low and the economy is continuing to improve, paving the way for increased home sales. The homebuilders have an impressive backlog of new home orders, too, he added. 

The secondary plays such as Masco (MAS)  are also attractive, added Karen Finerman, president of Metropolitan Capital Advisors. However, homebuilders and the housing sector were not her top growth picks. Finerman says she's looking to the sky instead -- a possible investment in drones

Finerman acknowledged that it's a hard group to invest in due to the limited number of stocks that operate in that segment. AeroVironment (AVAV) makes great products but she's unsure if now is the time to buy the stock. It's an exciting growth area that's just at the cusp of getting much bigger, she said. 

Brian Kelly, founder of Brian Kelly Capital, prefers the aerospace and defense sector. He likes Alliant Techsystems (ATK) , Lockheed Martin (LMT)  and Rockwell Collins (COL) . 

Dan Nathan, co-founder and editor of riskreversal.com, is looking to take advantage of the Internet growth in China. He is a buyer of Baidu (BIDU) , which has a relatively low valuation given the multi-year expectation for double digit revenue and earnings growth. China's 4G coverage is also increasing quite rapidly, which benefits Apple (AAPL) and China Mobile Limited (CHL) , Najarian added. 

While some of these growth plays have longer-term time horizons, one company benefiting from today's action in China was Qualcomm (QCOM) . The company agreed to settle with Chinese regulators for $975 million to end its current antitrust issues. 

This is great news for the company, said Alex Gauna, senior analyst at JMP Securities. He has a buy rating on Qualcomm and Street high price target of $85. The company continues to have "impressive growth" and will continue to capitalize on China's growing 4G network. With the dividend yield, settlement in China and continuing royalty payments, shares of Qualcomm could possibly trade higher than $85, he reasoned. 

Nathan said 30% of Qualcomm's market cap is in cash, the company has no debt and a large share repurchase plan. It seems like an activist could get involved here, given the company's attractive dividend and still large position of cash. 

Worries over a Greek exit from the Eurozone spooked investors on Monday. According to Dennis Gartman, editor and publisher of The Gartman Letter, the country would be better off leaving the eurozone, but likely won't do so.  

Germany needs Greece to stay in the eurozone because it helps to keep the euro lower, Gartman reasoned. With a lower euro, German exporters perform better and are more competitive in the world. Investors can be long of gold and short the euro, he reasoned, or simply long the AdvisorShares Gartman Gold/Euro ETF (GEUR) .

Kelly also said investors should be long of gold, explaining that a Greek exit could lead to bank runs in other countries like Spain and Italy. Other countries may feel like leaving the Eurozone too, he said, stressing that this is simply a possibility and not a guarantee. 

Investors could also be long the gold miners, Najarian added. 

For their final trades, Finerman is buying SunEdison (SUNE) and Najarian is a buyer of Olin Corp. (OLN) . Kelly said to buy Alliant Techsystems and Nathan is selling the Financial Select Sector SPDR ETF (XLF) .

-- Written by Bret Kenwell

Follow @BretKenwell

Follow TheStreet.com on Twitter and become a fan on Facebook.

 

  This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.

More from Jim Cramer

'The Economy Is Quite Strong,' JPMorgan CEO Jamie Dimon Tells Jim Cramer

'The Economy Is Quite Strong,' JPMorgan CEO Jamie Dimon Tells Jim Cramer

Jim Cramer: Be Careful in the Cannabis Stocks

Jim Cramer: Be Careful in the Cannabis Stocks

AT&T, Walmart, United Parcel Service: 'Mad Money' Lightning Round

AT&T, Walmart, United Parcel Service: 'Mad Money' Lightning Round

Warming to Tariffs?: Cramer's 'Mad Money' Recap (Friday 9/21/18)

Warming to Tariffs?: Cramer's 'Mad Money' Recap (Friday 9/21/18)

Jim Cramer: Micron's Buyback May Stabilize the Stock

Jim Cramer: Micron's Buyback May Stabilize the Stock