FIVE is fresh off a June 5, 52-week high of $137.30
Five Below Inc (NASDAQ:FIVE) stock is down 1.2% to trade at $124.92, on the heels of disappointing retail sales data for May. The discount retail stock still sports a 22.9% nine-month lead, however, and is fresh off its June 5, 52-week high of $137.30, with a floor at $120 containing the subsequent pullback. What's more, a historically bullish signal currently flashing indicates tailwinds aren't done blowing for FIVE just yet.
More specifically, Five Below stock's recent peak comes amid low implied volatility (IV), per its Schaeffer's Volatility Index (SVI) of 46%, which stands in the 14th percentile of its annual range. This has occurred six other times over the past five years, after which the stock was higher one month later 67% of the time, with a 5% pop. From its current perch, a similar move would place FIVE back above $131.
Short sellers are already hitting the exits, but a continued unwinding of short interest could provide an additional boost. Digging deeper, short interest is down 31.3% in the most recent reporting period, but still accounts for a considerable 6.2% of the security's available float.
Options are an intriguing route for those looking to weigh in on FIVE's next moves. This is per the equity’s Schaeffer’s Volatility Scorecard (SVS), which ranks high at 95 out of 100, meaning it has tended to exceed volatility expectations in the past year -- a boon for options buyers.