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4 ways to trade the consumer

A slide in Bed Bath and Beyond shares following a revenue miss may provide a strong entry point for investors, some CNBC "Fast Money" traders said.

"I think it gives you a great opportunity," said trader Pete Najarian.

The specialty retailer on Wednesday met quarterly earnings per share expectations of $1.80 but posted $3.34 billion in revenue versus an expected $3.37 billion. Bed Bath and Beyond slipped more than 3 percent to about $75 per share in extended trading.

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Najarian noted that the numbers "weren't all the bad," adding that the drop sets up a better valuation for taking a long position. Trader Guy Adami added that the stock could fall below $73 per share, where it makes a strong buying opportunity.

Traders discussed how to play movement in Bed Bath and Beyond and other consumer names on Wednesday.

Bed Bath & Beyond
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Nike and Under Armour

Athletic apparel company Lululemon climbed more than 3 percent on Wednesday, touching a 52-week high during the session. It closed just below $69 per share.

Despite its strong performance—up 23 percent year-to-date—trader Dan Nathan believes competitors Nike and Under Armour make better plays in the space.

"I'd much rather own Nike or Under Armour for a breakout," Nathan said.

Lions Gate Entertainment

Lions Gate shed more than 6 percent on Wednesday on Tuesday news that MHR Fund Management will sell 10 million common shares in the entertainment company in a secondary offering. It closed at about $31.50 per share.

Adami said the offering "caught a lot of people by surprise." He would buy the stock if it recovers above $32 per share, but would stay away if it keeps reeling.

Disclosures:

Pete Najarian

Pete Najarian is long AMAT, AAPL, BABA, BAC, BMY, BP, CSX, DISCA, FOXA, GE, KKR, KO, LLY, MRK, PEP, PFE and SAP. He is long calls AA, AAPL, ABT, BBBY, BK, CNX, COP, CSX, EBAY, EEM, EXXI, F, FCX, FL, GE, GM, GT, HOG, JD, KO, MYL, NEE, PBR, PEP, PFE, TEVA, TWTR, UA, UAL, UFS and ZIOP. Today, he bought AA calls, AAPL calls, ABT calls, BBBY calls and EEM calls. Today, he sold LYB calls.

Dan Nathan

Dan Nathan is long BBRY June call spread, INTC April Put spread, IWM April put fly, JPM April 60/55 put spread, M May call spread, NKE call spread, QQQ May 108/ 98 put spread, SHAK, T, TWTR, WMT June call spread, XHB April 35/32 put spread and XLP May put spread.

Steve Grasso

Steve Grasso is long AAPL, EVGN, MJNA, PFE, T, TWTR and GDX. His firm is long AMZN and MCD. His kids own EFG, EFA, EWJ, IJR and SPY.

Guy Adami

Guy Adami is long CELG, EXAS and INTC. Guy Adami's wife, Linda Snow, works at Merck.