Traders move into homebuilders and home improvement stocks

The " Fast Money " traders said on Tuesday it might be time to move into the homebuilder stocks.

On Tuesday, the SPDR S&P Homebuilders ETF (NYSE Arca: XHB) gained about 1.8 percent after Toll Brothers (TOL) reported better-than-expected results on the back of higher home sales.

Trader Tim Seymour said that between recent economic data and Toll Brothers' (TOL) upbeat results, the homebuilders and home improvement stocks look attractive. In these sectors, he said he likes PulteGroup (PHM), D.R. Horton (DHI), Restoration Hardware (RH) and Sherwin-Williams (SHW).

Trader Steve Grasso said KB Home (KBH) may benefit from people buying lower-priced homes.

Trader Brian Kelly said he isn't as sold on the fundamentals of a rally in the homebuilder stocks. He said that if he had to pick a stock in the space, he would prefer home improvement companies like Lowe's (LOW).

Disclosures:

TIM SEYMOUR

Tim Seymour is long APC, AVP, BAC, BBRY, CLF, DAL, DO, DVYE, EDC, EWZ, F, FB, FCX, FXI, GM, GOOGL, GRMN, GE, INTC, LQD, M, MCD, MPEL, NKE, RACE, RAI, RH, RL, SINA, T, TWTR, UA, VALE, VZ, XOM and short: SPY, XRT. His firm is long ABX, BABA, BIDU, CBD, CLF, EWZ, F, HD, KO, MCD, MPEL, NKE, PEP, PF, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, YHOO and short HYG, IWM.

DAVID SEABURG

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc. David Seaburg and Cowen have a financial interest in EDIT.

BRIAN KELLY

Brian Kelly is long Bitcoin, CME, DXJ, GDX, KBE, SLV, TLT, XLF, XOP, US Dollar UUP. He is short the euro and Japanese yen.

STEVE GRASSO

Steve Grasso is long BA, CC, EVGN, KBH, MJNA, MU, OLN, PFE, PHM, T, TWTR, GDX. Grasso's children own EFA, EFG, EWJ, IJR, SPY. No Shorts. Stuart Frankel & Co Inc. and some of its Partners have a financial interest in LDP, WDR, AVP, CVX, FCX, ICE, KDUS, KO, MAT, MCD, MJNA, NE, NEM, OLN, OXY, RIG, STAG, TAXI, TEX, TITXF, URI, VALE, WDR, WYNN, ZNGA, CUBA, HSPO, ICE, AMZN, MJNA, TITXF, NXTD, SPY, QQQ, DIA, XLI, BGCP, VIRT, JCP, GE, AIR, FP.