Gwon notes that the companies are industry leaders and have similar cost and pricing structures. He feels sentiment is negative for Lowe's right now, and is taking a contrarian stance and going long on the stock. From a valuation perspective, Lowe's trades at a 14x price-to-earnings multiple, Gwon says, while Home Depot -- the short in the trade -- is at at 16x multiple. Gwon is also looking at WellPoint ( WLP ) and United Healthcare ( UNH ). Both are healthcare companies so the impact of reform is a big issue. According to Gwon, Wellpoint's stock is presently trading at a 9x price-to-earnings multiple and is sitting at a 30% discount to its historic price. The company also recently topped Wall Street 's expectations for the second quarter and raised its outlook for the year. Meanwhile, United Healthcare has also delivered strong revenue growth, but since it's not trading at the discount that WellPoint is, Gwon says he would be long WellPoint and short United Healthcare.