Five Below Stock Takes Analyst Drubbing on Dismal Forecast

No less than 11 brokerages lowered their price targets

Digital Content Manager
Jun 9, 2022 at 9:09 AM
facebook twitter linkedin


The shares of Five Below Inc (NASDAQ:FIVE) are down 7.9% to trade at $124.71 this morning, following the retailer's first-quarter earnings report. Five Below posted profits of 59 cents per share, which just barely topped analysts' estimates, on revenue that missed forecasts. Additionally, the company slashed its full-year net sales forecast to the range of $3.04 billion to $3.12 billion, well below what was expected by analysts. 

The brokerage bunch is taking notice, with 11 firms already slashing their price targets. The lowest comes from Evercore ISI to $145 from $155, while J.P. Morgan Securities cut its price objective all the way to $153 from $207. With a 12-month consensus price target of $184.85 -- a 36.6% premium to last night's close -- and all 13 analysts in coverage considering FIVE a "buy" or better, heading into today, there's reason to believe even more bear notes could be on the horizon for the discount retail stock. 

An unwinding of optimism among options traders could also weigh on the equity. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FIVE sports a 50-day call/put ratio of 2.70, which sits higher than 79% of readings from the past year. In other words, options traders have been picking up calls at a quicker-than-usual clip. 

Five Below stock is down 34.6% in 2022, and 28.5% in the past 12 months. Though the equity was able to stage a sharp bounce off its May 24 annual low of $110.83, the 30-day moving average put a lid on these gains, sending FIVE back below a recent bull gap on the charts. 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners