Signal Says Buy the Dip on This Retail Stock

FIVE has short squeeze potential

Deputy Editor
Jun 21, 2023 at 11:38 AM
facebook X logo linkedin

The shares of Five Below Inc (NASDAQ:FIVE) are off by 6.3% this quarter, following an early-June post-earnings plunge to the $165 level. There's a silver lining for the discount retail stock, as it just pulled back to a historically bullish trendline. 
Five Below stock is within one standard deviation of its 160-day moving average. Per Schaeffer's Senior Quantitative Analyst Rocky White, FIVE saw three similar signals over the past three years, and was higher one month later each time, averaging a 14.5% pop. A move of similar magnitude would place the stock back near its 2023 highs.


FIVE Chart June 212023

A shift in the options pits could also give FIVE a lift, per the equity's 10-day put/call volume ratio of 1.58 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 87% of readings from the past 12 months. 

Short interest is inching lower, down 4.9% over the last two reporting periods. However, the 3.73 million shares sold short still make up 6.9% of Five Below stock's available float, indicating the equity could move higher still should some of this pessimism start to unwind.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI