Editor's note: Seeking Alpha is proud to welcome LE Investments as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access.
Five Below: Short-Term Weakness Bodes Well For Long-Term Investors
Summary
- Shares of Five Below have declined by 37% in the last two months, presenting a buying opportunity for long-term investors.
- The company has a strong balance sheet, clear growth potential, and a target demographic that is less sensitive to economic pressure.
- Five Below's business model has shown consistent growth, and its growth potential is supported by its ability to self-fund expansion without debt.
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.