1 Growth Stock Down 20% to Buy Right Now
As its name suggests, Five Below (NASDAQ: FIVE) is a discount retailer that sells merchandise typically below $5 an item. During the inflationary environment that's been worrying everyone in the past couple of years, the company's 1,367 stores appeal to value shoppers. With consumers looking to find any strategies they can to stretch their budgets, this retailer can be a top choice to get some of what they need.
However, Five Below shares are down 20% from their all-time high. Here's why it's still a growth stock that's worth buying right now.
While many retail businesses are experiencing slowdowns in recent quarters, Five Below is seeing its growth accelerate. In the third quarter of 2022, the fourth quarter of 2022, and the first quarter of 2023, revenue increased by 6.2%, 12.7%, and 13.5%, respectively, on a year-over-year basis. Dollar General, probably Five Below's most formidable competitor, saw sales jump 17.9% in the fiscal 2022 fourth quarter, gains that shrunk to 6.8% in the latest period.
Source Fool.com
