Up Almost 40% in the Past 3 Months, Is This Explosive Stock a Smart Buy?
Five Below (NASDAQ: FIVE) has found great success through the years by providing consumers with a vibrant shopping experience focused intensely on value. But with growth slowing dramatically in the past few quarters, shares have been under pressure, down almost 22% since hitting an all-time high in August 2021.
Investor sentiment might finally be turning positive, however. Over the past three months, Five Below is up 36% (as of this writing). Is this explosive retail stock a smart buy today? Let's take a closer look at what investors should know.
As the name suggests, Five Below sells a wide assortment of merchandise, ranging from tech and beauty products to toys and furnishings, for largely under $5 an item. The company's target customers are between the ages of 8 and 14 years old, as well as their parents. While Five Below emphasizes value for its customers, it's worth mentioning the average household that shops there has an annual income of $73,000. That's slightly higher than the median household income in the U.S. of just under $71,000. One would assume that Five Below would attract a lower-income household, but it's clear that seeking out value and stretching your budget is something everyone strives for when making purchases.
Source Fool.com
