Burgers or clothes? Trading the consumer

Earnings sent shares of Shake Shack and Urban Outfitters in opposite directions Monday, and "Fast Money" traders debated whether the stocks were worth buying after the moves.

Shake Shack's fourth-quarter adjusted earnings per share of 8 cents and revenue of $51.1 million beat analysts' estimates, but its shares fell 8 percent in after-hours trading on weaker-than-expected same-store sales guidance. Despite the disappointment, Shake Shack has "a massive runway," and its stock looks appealing at a cheaper price, argued trader Dan Nathan.

"If you can get it at the right price, it makes total, total sense," Nathan said.

Traders work on the floor of the New York Stock Exchange on January 30, 2015, the day of the Shake Shack IPO.
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Traders work on the floor of the New York Stock Exchange on January 30, 2015, the day of the Shake Shack IPO.

However, trader Tim Seymour contended that he would stay away from the stock, as it still looks overvalued.

Urban Outfitters' stock, meanwhile, spiked 11 percent in after-hours trading after the retailer beat earnings estimates but fell just short of sales expectations. Trader Guy Adami said the company reported a "good quarter," adding that he believes its stock will go higher. It has climbed nearly 24 percent this year.

Trader Steve Grasso, however, cautioned that some retail names have started to look overbought. He noted that he sold shares of American Eagle Outfitters when his position was up 15 percent. Grasso added that he is considering cutting his stake in Deckers, which has climbed 23 percent this year.


Guy Adami

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

Steve Grasso

Steve is Long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, KBH, MJNA, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long CXO, OXY, BP, CVX, RIG, FCX, AMZN kids own EFA, EFG, EWJ, IJR, SPY

Dan Nathan

Dan is long PFE buy-write, long TWTR, long UUP March calls, long GE May 28 puts, long JPM April puts, long XLP March put spread, long XRT March puts, long XLB March puts, long HD put butterfly, long QQQ puts, long INTC March/April put spread

Tim Seymour

Tim Seymour is long AAPL, BAC, BBRY, DO, F, FCX, GM, GOOGL, INTC, JCP, NKE, SINA, T, TWTR, VZ, XOM. Tim's firm is long BABA, BIDU, CLF, KO, MCD, PEP, PF, SAVE, SBUX, VALE, WMT,YHOO, short HYG, IWM.