Five Below Story

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FIVE -- USA Stock  

USD 176.67  8.08  4.37%

In general, we focus on analyzing Five Below (NASDAQ:FIVE) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Five Below daily price indicators and compare them against related drivers. Today's article will digest Five Below. What exactly are Five Below shareholders getting in January?
Published over a month ago
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Should I hold on to my Five Below (NASDAQ:FIVE) position?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Five Below has an asset utilization ratio of 429.7 percent. This indicates that the company is making $4.3 for each dollar of assets. An increasing asset utilization means that Five Below is more efficient with each dollar of assets it utilizes for everyday operations.
The successful prediction of Five Below stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Five Below, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Five Below based on Five Below hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Five Below's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Five Below's related companies.

Use Technical Analysis to project Five Below expected Price

Five Below technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Five Below technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Five Below trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

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

The latest price surge of Five Below could raise concerns from shareholders as the firm it trading at a share price of 156.07 on 1,218,330 in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in January. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.96. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Cost of Revenue Breakdown

Five Below Cost of Revenue is increasing over the years with slightly volatile fluctuation. Cost of Revenue is expected to dwindle to about 850.1 M. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Five Below Cost of Revenue is projected to increase significantly based on the last few years of reporting. The past year's Cost of Revenue was at 1.17 Billion
2010
2014
2020
2010347.39 Million
20141.17 Billion
2020850.1 Million

Are Five Below technical indicators showing a bounce-back?

Treynor ratio is down to 0.9. It may indicate a possible volatility dip. Five Below currently demonstrates below-verage downside deviation. It has Information Ratio of 0.24 and Jensen Alpha of 0.55. 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 Takeaway

Although other entities in the specialty retail industry are either recovering or due for a correction, Five Below may not be performing as strong as the other in terms of long-term growth potentials. While some shareholders may not share our view we believe it may be a good time to exit Five Below as the risk-reward trade off is not appealing enough to hold a position. 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 Gabriel Shpitalnik 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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