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Traders look for opportunities in discounted retail stocks

The "Fast Money" traders looked for opportunities in retail after a number of stocks in the sector declined on Wednesday.

Target shares shed nearly 6 percent Wednesday as foot traffic at the company's stores lagged, despite a marketing push and spike in digital sales. Dollar Tree declined nearly 3 percent, while Macy's fell about 1.5 percent.

Trader Karen Finerman said she thinks the decline in retail was overdone. She also said that Target's decline seemed rather large considering the size of the miss. Finerman said she'd be interested in buying the stock near current levels, but would wait for things to shake out.

Trader Brian Kelly said he believes that Wal-Mart is the "most at risk" of retail companies. He explained that the company would be exposed to higher prices if a border tax is implemented and/or wages increase.

Trader David Seaburg said investors should instead look at companies with a "differentiated brand." He said he would be interested in buying Burlington Stores, Adidas and Dick's Sporting Goods on a pullback.

Trader Guy Adami said he prefers credit card issuers Mastercard and Visa to the pure retail stocks.


Disclosures:

GUY ADAMI

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

KAREN FINERMAN

Karen Finerman is long AAL, BAC, BAC short calls, C, DAL, FB, FL, GLMP,, GOGO, GOOG, GOOGL, JPM, LYV, KORS, KORS calls, KORS puts, M, MA, SEDG, SPY puts, TACO, UAL, URI, WIFI long call spreads. Her firm is long ANTM, AAPL, BAC, C, C calls, FB, GOOG, GOOGL, JPM, JPM calls, KORS, LYV, M, MOH, PLCE, SPY puts, URI, WIFI. Her firm is short IWM, MDY. Finerman is on the board of GrafTech International.

BRIAN KELLY

Brian Kelly is long: FCX, HLF, GDX, TSLA, SLV, Bitcoin.

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. An employee of Cowen and Company, LLC serves on the Board of Directors of Diamond Offshore.