Five Below Stock Soars on Fresh Bull Note

Most analysts are already upbeat toward Five Below

Oct 4, 2019 at 9:49 AM
facebook X logo linkedin


William Blair initiated coverage on Five Below Inc (NASDAQ:FIVE) with an "outperform" rating, saying the company creates a "unique" experience for young shoppers, and cited an "attractive" financial backdrop and "solid" cash flow. Additionally, the analyst in coverage forecast high-teen to low 20% annual revenue growth for the discount retailer.

Most analysts are already bullish on FIVE stock, with 12 of the 16 in coverage maintaining a "buy" or better rating. Plus, the average 12-month price target of $140.58 is a 13.1% premium to Thursday's close at $124.33.

However, pessimism has been cropping up elsewhere on Wall Street. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Five Below's 10-day put/call volume ratio of 2.98 ranks in the 95th annual percentile, meaning puts have been bought to open over calls at an accelerated clip.

Echoing this spike in skepticism, short interest jumped 22.9% in the latest reporting period to 3.15 million shares. These bearish bets account for a healthy 5.8% of FIVE stock's available float, or nearly three days' worth of pent-up buying power, at the average pace of trading. This could create tailwinds for the retail stock, should some of the weaker bearish hands start to throw in the towel.

Looking at the charts, FIVE shares have surged nearly 26% since their early August lows below $103. Plus, the stock's recent pullback from its mid-September peak around $138 was contained by its 200-day moving average. Today, Five Below stock is up 3.8% to trade at $129, putting the retailer on track to snap its two-week losing streak.

 

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 C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI