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W.W. Grainger: Is This the Spot to Sell?

Industrial distributor Grainger raised its dividend on Thursday, a week after posting strong earnings and raising its full year outlook.

So why do the Fast pros say going forward, the stock is a short?

“The stock has rallied about 100% in an 8 month period and now Amazon has launched something that’s tantamount to a turf war.”

As CNBC's Fast Money first told you on Monday, Amazon launched a new beta site, AmazonSupply.com in an attempt to win some of the lucrative home improvement market. The site offers a wide range of products from nuts and bolts to trash cans.

Iurio thinks one of the companies that Amazon has in its cross hairs is WW. Grainger. And he doesn't think they're ready for what's coming.

“There are a long list of companies that have gone up against Amazon, and they’ve been taken out to the proverbial woodshed,” adds trader Mike Muprhy. “I think Granger is going to be in a big surprise.”

All told, “Seems like the stock should correct. This feels like the spot to sell,” Iuorio says.

And like every good trader, Iuorio has set a stop just in case the trade goes against him. “I sold at 209.50 but I stop out at $216.”





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Trader disclosure: On Apr 27, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian is long SBUX; Pete Najarian is long INTC; Pete Najarian is long MSFT; Pete Najarian is long HPQ; Pete Najarian is long CE; Pete Najarian is long WLT; Pete Najarian is long MOS; Pete Najarian is long ECA; Pete Najarian is long PFE; Pete Najarian is long MRK; Pete Najarian is long COP; Pete Najarian is long APPL; Pete Najarian is long OPTIONS IN ABX; Pete Najarian is long OPTIONS IN BMY; Pete Najarian is long OPTIONS IN CLF; Pete Najarian is long OPTIONS IN DVN; Pete Najarian is long OPTIONS IN GT; Pete Najarian is long OPTIONS IN MGM; Pete Najarian is long OPTIONS IN SBUX; Pete Najarian is long OPTIONS IN SNDK; Pete Najarian is long OPTIONS IN STI; Pete Najarian is long OPTIONS IN V; Pete Najarian is long OPTIONS IN XCO; Steve Grasso is long ASTM; Steve Grasso is long AVAV; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long NUAN; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long PRST; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA; Steve Grasso is long CUBA; Steve Grasso is long GERN; Steve Grasso is long HPQ; Steve Grasso is long HSPO; Steve Grasso is long MU; Steve Grasso is long NYX; Steve Grasso is long UAL; Steve Grasso is long P; Steve Grasso is long PRST; Steve Grasso is long VVUS; Steve Grasso is long XRX; Steve Grasso is long ZNGA; Steve Grasso is short AAPL; Steve Grasso is short QQQ

For Mike Murphy
Mike Murphy is long JPM
Mike Murphy is long INTC
Mike Murphy is long ANF
Mike Murphy is long SBUX
Mike Murphy is long FCX
Mike Murphy is long PHM

For Willie Williams
Nothing to disclose

For Herman Leung
SFG is a market maker in the securities of Amazon.com AMZN

For Nicole Miller Regan
Piper Jaffray was making a market in the securities of SBUX

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Pending

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