Five Below Stock Hits Record High After Earnings

It was a beat-and-raise for Five Below

by Karee Venema

Published on Sep 7, 2018 at 10:04 AM
Updated on Sep 7, 2018 at 10:17 AM

The shares of Five Below Inc (NASDAQ:FIVE) are soaring today after the discount retailer's blowout earnings report. A round of bullish brokerage notes is only fanning the flames, with FIVE stock up 13.6% to trade at $131.27 -- fresh off a record high of $134.75 -- on track for its best day since June 7, the date of another post-earnings bull gap.

For the second quarter, Five Below earned 45 cents per share on $347.7 million in revenue, well above analysts' estimates for a per-share profit of 38 cents on revenue of $334.8 million. Plus, same-store sales surged 2.7% over the three-month period, and the retailer raised its full-year profit forecast on growth in new stores.

In reaction, Gordon Haskett raised its FIVE rating to "buy" from "hold," and boosted its price target to $150 from $110 -- matching upwardly revised price targets from J.P. Morgan Securities and Jefferies. Not only are these new price targets the highest on Wall Street, they stand at a nearly 30% premium to last night's close at $115.51.

Most analysts are already upbeat toward Five Below stock, with the majority of those in coverage maintaining a "buy" recommendation, and not a single "sell" in sight. However, the average 12-month price target of $130.06 is in line with current trading levels, suggesting there's room for more price-target hikes to come down the pike for a stock that's now doubled in value on a year-to-date basis.

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