Five Below: Buy This Defensive Consumer Name Before Earnings

Aug. 26, 2022 11:04 AM ETFive Below, Inc. (FIVE)2 Comments

Summary

  • Five Below is a defensive name that can provide growth for investors during an uncertain time.
  • Five Below has experienced high levels of growth on many financial metrics, and we believe they are likely to continue.
  • The company has goals of doubling earnings in the next few years, and we believe their business strategy and buyback program will make that happen.
  • Assuming that Five Below's goals are achieved, the stock's price can go much higher from here.

Overhead image of people buying in the large supermarket

lechatnoir

Thesis

We are initiating coverage on Five Below, Inc. (NASDAQ:FIVE) as we believe this stock can be a recession-proof consumer name in an investor's diversified portfolio. The company has a business model that caters to low to middle income

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2022 Investor Day Presentation

2022 Investor Day Presentation

2022 Investor Day Presentation

2022 Investor Day Presentation

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This article was written by

Sweet Minute Capital produces high-quality research on contrarian investment ideas, focusing on various industries with potential for high growth of shareholder value. We strive to uncover under-appreciated stocks that are priced well below their long-term fundamental value and can generate outsized shareholder returns for the long term. The firm also specializes in producing research that focuses on easy-to-understand concepts that are accessible to all readers.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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