FIVE: Decent Business At A Horrible Price
Wed, Dec. 7, 7:44 AM
- Loop Capital picks out some favorites in the retail sector.
- The boutique investment firm assigns new Buy ratings to Best Buy (NYSE:BBY), Big Lots (NYSE:BIG), Five Below (NASDAQ:FIVE), and GameStop (NYSE:GME).
- Loop price targets: BBY $58 (+24% upside), BIG $64 (+18% upside), FIVE $64 (+48% upside), GME $32 (+28% upside).
Fri, Dec. 2, 10:04 AM
- Five Below (NASDAQ:FIVE) is up 9% after reporting Q3 results above expectations.
- The tone from management was positive during the earnings call.
- "We are pleased with the more positive business trends that we are seeing and we believe this provides nice momentum heading into the big holiday weeks of December," said CEO Joel Anderson.
- Previously: Five Below EPS in-line, misses on revenue (Dec. 1)
- Previously: Five Below trades higher after guidance lift (Dec. 1)
Fri, Dec. 2, 9:12 AM
Thu, Dec. 1, 5:37 PM
Thu, Dec. 1, 4:15 PM
- Five Below (NASDAQ:FIVE) reports comparable sales fell 0.2% in Q3.
- Operating income rose 23% Y/Y to $8.6M.
- The company says it opened 26 new stores during the quarter and ended the period with 517 stores.
- Looking ahead, Five Below sees Q4 revenue of $391M to $397M and EPS of $0.89 to $0.92 vs. $0.91 consensus.
- Previously: Five Below EPS in-line, misses on revenue (Dec. 1)
- FIVE +6.07% AH to $42.30.
Thu, Dec. 1, 4:02 PM
Wed, Nov. 30, 5:35 PM
Fri, Nov. 25, 12:34 PM
- Credit Suisse thinks the dollar store sector could benefit if the legal challenge to extending overtime pay benefits to workers making up to $47K holds up.
- “Dollar stores would have been most heavily impacted by the new overtime rule given the sheer number of stores they operate and their unique low-cost labor model,” reads the CS note.
- “With only two to three employees per store typically working at any given time, store managers comprise a significant percentage of store labor and generally work heavy overtime.”
- Beyond Dollar General (DG +0.6%) and Dollar Tree (DLTR +0.1%) -- a list of companies that could benefit from the OT rules staying the same includes Five Below (FIVE -1.6%), Big Lots (BIG -0.5%) Fred's (FRED -1.2%) and Ollie's Bargain Outlet Holdings (OLLI -0.2%).
- Previously: New DOL overtime rule in state of flux (Nov. 25)
Tue, Nov. 22, 10:01 AM
- Dollar Tree (NASDAQ:DLTR) is up 11% after delivering a solid quarter that included an increase in Family Dollar acquisition benefits.
- Burlingon Stores (NYSE:BURL) races 15% higher after its Q3 results topped expectations.
- DSW (DSW +7.5%) and Chico's (CHS +7.3%) also turned in solid reports to round out the good cheer in the sector.
- Other retailers on the move include Dollar General (DG +3.1%), Big Lots (BIG +3.8%), Ollie's Bargain Outlet Holdings (OLLI +1.9%), American Eagle Outfitters (AEO +3.5%), Five Below (FIVE +2.8%), and Fred's (FRED +1.8%).
- Even the bigger chains are bringing in buyers, with Target (TGT +1.3%), Wal-Mart (WMT +1.5%), Staples (SPLS +1.8%) and Office Depot (ODP +3.2%) all ahead of broad market averages.
- The general theme in the retail sector today is margin improvement as some merchandise and operational costs were shown to have been reeled in to improve profitability.
Wed, Nov. 9, 6:47 AM
- Voters in Arizona, Colorado and Maine voters approved boosting the minimum wage in their states to $12 per hour. Each state will see the hikes make their way to the $12 level after a series of graduated increases.
- The state of Washington approved increasing the minimum wage to $13.50 by 2020.
- The restaurant industry has already been under pressure, with labor costs as a percentage of sales on the rise. Other pockets of retail will also feel a sting from the higher minimum wage boost.
- Restaurant stocks: CAKE, CBRL, DNKN, DPZ, DRI, EAT, JACK, MCD, RRGB, RT, SONC, WEN, BWLD, BDL, QSR, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, BOJA, PBPB, PLKI, FRSH, RAVE, LOCO, TACO, PZZA, KONA, BGR, BJRI, CHUY, FRS, CBRL, GTIM, TAST, WING, BOJA, ZOES, FOGO, ARCO, SHAK, YUM.
- Retail stocks: TGT, WMT, BIG, FIVE, DG, DLTR.
- Related ETF: BITE.
Wed, Oct. 26, 10:50 AM
- Longbow Research initiates coverage on Five Below (NASDAQ:FIVE) with a Buy rating.
- The investment firm sets a price target of $45.
- Five Below isn't due to report Q3 earnings until December 1.
- Five Below has been a long-time favorite of SA contributor Josh Arnold. "I still very much like FIVE's long-term growth trajectory and I think it is going to grow at terrific rates for a long time to come," wrote Arnold back in September.
- Shares of Five Below are up 1.52% to $38.05 vs. a 52-week trading range of $26.95 to $52.70.
Mon, Oct. 17, 1:02 PM
- Investors appear to be a little edgy about the chain store sector with the earnings season just starting to ramp up.
- Dillard's (DDS -4.3%) and Bon-Ton Stores (BONT -5%) are down significantly, while Kohl's (KSS -1.3%), Big Lots (BIG -0.7%), Fred's (FRED -1.6%), Target (TGT -1.2%), Five Below (FIVE -2.6%), Pier 1 Imports (PIR -5.3%), and Barnes & Noble Education (BNED -2.4%) are all tracking below broad market averages.
- There isn't a lot of consensus about what's been holding back U.S. consumers. Today, higher gas prices is being floated around as a factor, while last week it was election anxiety.
- 12-month chart of gas prices in the U.S. via GasBuddy.
- Previously: Retail sales track higher as expected (Oct. 14)
- Previously: Winners and losers from the retail sales report (Oct. 14)
- ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, CNDF, FTXD, JHMC.
Thu, Oct. 13, 10:31 AM
- KeyBanc has discounters on its mind.
- Five Below (FIVE -0.9%) earns an Overweight rating and price target of $47 from the investment firm.
- Dollar Tree (DLTR) also catches an Overweight initiation. "DLTR is a compelling multi-faceted story, supported by a strong execution at legacy DLTR, as well as a synergy and turnaround story at legacy FDO, acquired in 2015," writes analyst Bradley Thomas.
- Dollar General (DG -0.6%) is started at Sector Weight.
- YTD comparison: FIVE +19.9%, DG -4.4%, DLTR +0.3% vs. S&P Retail ETF -0.5%.
Tue, Sep. 13, 10:56 AM
- MKM Partners backs up its bullish view on Five Below (FIVE -1.8%).
- Analysts don't think Five Below has a high degree of exposure from the Hanjin bankruptcy. They also point to a recent pickup in store traffic.
- The investment firm reiterates a Buy rating on Five Below and sets a $60 price target on the retailer.
- The lush PT implies almost 50% upside potential on Five Below from its current level and is well-above the 52-week high of $52.70.
Thu, Sep. 1, 9:24 AM
Wed, Aug. 31, 5:35 PM