Five Below Stock Earns Rating Upgrade After Profit Surged 190%, Sales 198% Last Quarter

Despite the delta variant, the Covid virus seems to be in general retreat, at least in the U.S., and consumers are returning to stores. That’s lifted shares of companies like discounter Five Below stock. In a welcome move, Five Below (FIVE) saw its Relative Strength Rating improve from 68 to 72 on Tuesday.


The 72 RS Rating means that Five Below has outperformed 72% of all stocks over the past year.

Can Five Below Stock Pass Threshold?

Over 100 years of market history reveals that the top-performing stocks often have an 80 or better RS Rating as they begin their largest climbs. See if Five Below can continue to show renewed price strength and hit that benchmark.

Among other key ratings, Five Below has an 87 EPS Rating, putting it in the top 13% of all stocks in recent and long-term profit growth. Additionally, Philadelphia-based Five Below has an excellent A SMR Rating (sales+profit margins+return on equity).

The Street will need more convincing though. Five Below has a D Accumulation/Distribution Rating on an A+ to E scale. The D rating indicates that institutional investors are selling more than buying.

Top and bottom line growth moved higher in the company’s most recent quarter. Earnings were up 190%, compared to 12% in the prior report. Revenue grew 198% to $598 million.

Additionally, the company’s shares have soared 200% from a 47.53 bottom at its coronavirus crash low in March 2020 to a 188.50 close Tuesday, up 3.6% for the day. After a surge late last year and early this year, Five Below has mostly moved sideways

Other Discounters In Group

The company holds the No. 1 rank among its peers in the Retail-Discount & Variety industry group. BJ’s Wholesale (BJ) and Dollar General (DJ) are also among the top five ranked stocks in the group.

See How IBD Helps You Make More Money In Stocks

Five Below is building a flat base with a 205.38 entry. See if the stock can clear the breakout price in volume at least 40% above average.

When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.

IBD’s unique rating measures market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock’s price behavior over the trailing 52 weeks compares to all the other stocks in our database.


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