#ibdpartner
Summary
FIVE Below Added to the IBD50 “Top 10” List as the Stock Nears Buy Point
Five Below (FIVE) was added to the Investor Business Daily “IBD50 Top 10” List. The company targets the discount retail industry group with 625 stores operating in 32 states. Five Below plans to open 125 additional stores this fiscal year.
Leaderboard sent out an alert last night, a useful feature that systemizes our approach to investing and trading. The fundamental and technical work is done by Investors Business Daily, freeing up valuable time and enabling a more efficient approach to our technical analysis.
FIVE Below Instant Alert – Added IBD50 Top 10
Technically speaking, the stock is approaching a breakout pivot +8% above the Wednesday close, at 136.13. This zone is also where traders took profits in September. The stock is printing a cup and handle pattern, with the latter forming on lower volume.
FIVE’s relative strength line hit a new high recently, highlighting the stock’s leadership in the discount retail sector. The RS line measures a stock’s price performance compared to the S&P 500 (broad market).
The stock was on our watchlist this week, so we’ll wait for a breakout of the handle to add to our position. Breakout alerts have been set for 125.85 ~ 127.80.
“IBD Sector Leader Five Below (FIVE) is one of the top growth stocks to watch, as it consolidates just below a cup-with-handle buy point. Five Below stock surged as much as 74% after a breakout on June 5 above a flat base’s 78.38 entry.” – IBD
Top Growth Stocks To Watch: Five Below
“Teen-centric discount retailer Five Below sells toys, tech accessories and room decor for $5 or less. Five Below is testing out selling products for as much as $10. The new price point would allow Five Below to acquire new merchandise.
After mixed quarterly results in early December, the next quarter’s results aren’t anticipated until mid-March. Last quarter, Five Below provided weak earnings guidance for the holiday quarter.
Goldman Sachs remains positive on Five Below stock, given management’s confidence in its growth model. Management expects 145-150 new stores in fiscal year 2019, which ends next January. Goldman’s 12-month price target is 134, about a 5% premium to Tuesday’s closing stock price.” – Source – Investors Business Daily
Is Five Below poised to repeat it’s previous performance?
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Happy Trading,
Vinny
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