Teal LindeFive Below IncFIVEPAST TOP PICKFeb 26, 2018
(A Top Pick Mar 9/17, Up 73%) Their runway of growth is longer than DOL-T. It is a dollar store for tweens and teens. They just had their best Christmas quarter since 2012. It is lumpy here so he would recommend holding it, rather than buying it.
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.
(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%.
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.
(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.
(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.
(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.
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)
(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.
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.
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)
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.
(A Top Pick Mar 9/17, Up 73%) Their runway of growth is longer than DOL-T. It is a dollar store for tweens and teens. They just had their best Christmas quarter since 2012. It is lumpy here so he would recommend holding it, rather than buying it.