Getting a bargain never goes out of style. Discount store operator Five Below has nearly doubled its stock price from mid-2022 and it's soared fourfold from its 2020 Covid market crash low. It's no surprise then that on Monday the Relative Strength (RS) Rating for Five Below stock jumped from 74 to 83.
Five Below Stock A Favorite Among Big Funds
The upgraded 83 RS Rating puts Five Below stock in a select group, among the top 17% of stocks for price strength over the past year. Research demonstrates that the best-performing stocks often have an 80 or better RS Rating in the early stages of their biggest moves.
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Among its other ratings Five Below stock also has a strong 84 Earnings Per Share Rating out of 99. Its Composite Rating, a group of five other technical and fundamental ratings, is 87. And its Accumulation/Distribution Rating, a gauge of institutional buying, is B+ on an A+ to E scale with A+ tops and E dismal. The B+ rating shows that big money funds are fairly eager buyers of its stock.
Five Below stock is working on a double-bottom base and fast approaching a 209.12 buy point. See if it can break out in heavy trading. It closed at 201.44 Monday, up 0.8% for the day. It rose from a 109.49 close on July 5, 2022 and is up more than 300% from a 47.53 close in late March 2020.
Recently, Five Below stock has advanced 39% in about nine weeks, from an intraday low 144.57 on Sept. 26 to 201.44 Monday.
Investors Seem To Ignore Outlier Lower Earnings Quarter
On Nov. 29, the company said earnings last quarter fell 10% year over year to 26 cents per share. But its stock rose four of the last five trading sessions and investors seem to be ignoring the outlier quarter. The prior three stanzas its EPS rose 23%, 9% and then 14%. Revenue has grown at a steadier pace the last four quarters, from 13% to 14%, 13% then 14% again last quarter to $736.4 million.
Five Below stock earns the No. 3 rank among its peers in the Retail-Discount & Variety industry group. Ollie's Bargain Outlet and China-based Miniso Group are also among the group's highest-rated stocks.
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