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Stockchase Opinions

Teal LindeFive Below IncFIVETOP PICKNov 28, 2016

A stock for those who wished they had bought Dollarama (DOL-T). Dollarama is successful because it is basically moving its price point up from $1 up to $2, $3 and to $4. This company simply started selling items at $5 or less. Secondly, they cater to the teenage market. Thirdly, they only have 500 stores in the US, and want to get to 2000. They are growing at 20% on the top and bottom lines, faster than Dollarama with more runway. Trading at only 26-27 times next year’s earnings. (Analysts’ price target is $49.07.)

$42.33

Stock price when the opinion was issued

$193.98

As of Jun 18, 2026. Market Open.

specialty stores
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BUY

They just delivered a strong quarter and shares jumped while dollar stores have delivered bad numbers -- Dollar Tree and Dollar General. Their EPS beat and raised full-year guidance.

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1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Oct 06/22, Up 21.1%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with FIVE has triggered its stop at $188.  To remain disciplined, we recommend covering the position at this time.  When combined with our previous recommendations, this will result in a net investment gain of 31%.  

COMMENT

The question was comparing the two companies as an investment. Walmart is a very large blue chip company that is not growing quickly. He prefers Five Below which is growing faster. There should be a very quick payback in nine months. There is nothing quite like it. They have just under 1400 stores.

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PAST TOP PICK
(A Top Pick Oct 06/22, Up 55.9%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with FIVE is progressing well.  We now recommend trailing up the stop (from $183) to $188 at this time.  

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PAST TOP PICK
(A Top Pick Oct 06/22, Up 47.8%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with FIVE is progressing well.  To remain disciplined, we now recommend trailing up the stop (from $160) to $183.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Oct 06/22, Up 27.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with FIVE is progressing well. To remain disciplined, we recommend trailing up the stop to $160 at this time.
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Curated by Michael O'Reilly since 2020.
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PAST TOP PICK
(A Top Pick Oct 06/22, Up 21.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with FIVE has achieved its $176 objective. To remain disciplined, we recommend covering half the position at this time and trailing up the stop-loss (from $125) to $145.
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PAST TOP PICK
(A Top Pick Oct 06/22, Up 11.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with FIVE is progressing well. To remain disciplined, we recommend trailing up the stop to $130.
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TOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate FIVE, a retailer of home items priced at $5 or under, as a TOP PICK. The company is a good hedge against a slowing economy, especially heading into Q4 when consumers look to purchase for the holiday. EPS growth is expected to exceed 25% next year and recently reported earnings supported a ROE of 21%. We like that cash reserves are growing, while the company is buying back shares. We recommend trailing up the stop-loss from $120 to $125, looking to achieve $170 -- upside potential over 16%. Yield 0% (Analysts’ price target is $169.89)
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Jul 12/22, Up 11.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK is progressing well. We now recommend trailing up the stop (from $90) to $120.
DON'T BUY
Report tomorrow He owns other dollar stores. This skews more to discretionary items than staples. He prefers retailers to sell customer needs, not wants. Prefers Dollar General.
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Curated by Michael O'Reilly since 2020.
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TOP PICK
Stockchase Research Editor: Michael O'Reilly As a retailer of home items priced at $5 or under, FIVE is a good hedge against a slowing economy. Revenues have grown by 7% and recently reported earnings supported a ROE of 24%. Management has already provided guidance that reflects the realities of supply chain and inflationary pressures. Cash reserves are growing, despite the company buying back shares. We recommend a stop loss at $90, looking to achieve $188 -- upside potential over 55%. Yield 0% (Analysts’ price target is $187.72)
TOP PICK
Stock went down recently. He now considers the valuation a good entry point. Business model allows them to pay back new store locations in 8 months. Able to grow without raising any debt. He recommended it in the past and continues to like the stock.
BUY ON WEAKNESS
A good long-term investment, but it swoons at times without a catalyst. Wait for that swoon to step in.
PARTIAL BUY
$5 and below and for teenagers and tweens. He would buy if he did not already own it. Buy half and if it sells off, you can buy more.