Why Five Below Dropped So Much

Summary

  • The entire retail sector is taking a hit, and Five Below is no exception.
  • Target and Walmart posted bad earnings when it comes to the bottom line. We go over these superficially.
  • We explain what these bad earnings imply for Five Below and what we can expect over the short, medium and long term.
  • This idea was discussed in more depth with members of my private investing community, Best Anchor Stocks. Learn More »

Five Below Retail Store. Five Below is a chain that sells products that cost up to 5 dollars.

jetcityimage/iStock Editorial via Getty Images

Introduction

We decided to write this article to shed some light on Five Below, Inc.'s (NASDAQ:FIVE) recent stock performance. Five Below has dropped more than 30% in just one month:

At first glance, this looks really

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This article was written by

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Best Anchor Stocks is a research team consisting of Leandro, an economist with a specialization in finance and Kris, an investing groups veteran who also runs the investing group Potential Multibaggers and focuses on long investments with greater potential for high upside.

Leandro is the leader of investing group Best Anchor Stocks and along with Kris, they offer research on quality growth stocks with lower volatility in the form of regular stock picks, real money and model portfolios, news of the week, watchlists, webinars, and daily chat. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of FIVE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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