Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Five Below

(

FIVE

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Five Below as such a stock due to the following factors:

  • FIVE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $57.9 million.
  • FIVE is up 4.9% today from today's close.

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More details on FIVE:

Five Below, Inc. operates as a specialty value retailer in the United States. The company offers various products priced at $5 and below. FIVE has a PE ratio of 45.4. Currently there are 9 analysts that rate Five Below a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Five Below has been 1.3 million shares per day over the past 30 days. Five Below has a market cap of $1.8 billion and is part of the services sector and specialty retail industry. The stock has a beta of 2.53 and a short float of 18.2% with 5.67 days to cover. Shares are down 19.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Five Below as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, premium valuation, poor profit margins, weak operating cash flow and disappointing return on equity.

Highlights from the ratings report include:

  • FIVE has underperformed the S&P 500 Index, declining 19.55% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • The gross profit margin for FIVE BELOW INC is currently lower than what is desirable, coming in at 30.17%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.39% trails that of the industry average.
  • Net operating cash flow has decreased to -$16.24 million or 39.90% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, FIVE BELOW INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.

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