Five Below Story

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FIVE -- USA Stock  

USD 127.54  0.24  0.19%

The primary objective of this story is to break down Five Below potential for October. We are going to discuss if Five Below is reasonably priced going into October.
Published over three weeks ago
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Our projection for Five Below (NASDAQ:FIVE) in October
Five Below has a beta of 0.2871. Let's try to break down what Five Below's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Five Below will likely underperform. The beta indicator helps investors understand whether Five Below moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Five Below deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Five Below. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Five Below


How important is Five Below's Liquidity

Five Below financial leverage refers to using borrowed capital as a funding source to finance Five Below ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Five Below financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Five Below's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Five Below, but it might be worth checking our own buy vs. sell analysis

Breaking down Five Below Indicators

Five Below currently demonstrates below-verage downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.06. However, we do advice investors to further question Five Below expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Margin Breakdown

Operating Margin12.15
EBITDA Margin0.15
Gross Margin0.38
Profit Margin0.0874

Will Five Below growth be justifiable after the surge?

Maximum drawdown is down to 15.8. It may indicate a possible volatility dip. Five Below currently demonstrates below-verage downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.06. However, we do advice investors to further question Five Below expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On Five Below

Although some firms within the specialty retail industry are still a little expensive, even after the recent corrections, Five Below may offer a potential longer-term growth to shareholders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither pick up nor quit any shares of Five Below at this time. The Five Below risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Five Below.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Five Below. Please refer to our Terms of Use for any information regarding our disclosure principles.

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