Five Below (FIVE) Moving On Heavy Volume In The Pre-Market Hours

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 or Stephanie Link.

Trade-Ideas LLC identified Five Below ( FIVE) as a pre-market mover with heavy volume 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 $38.1 million.
  • FIVE traded 93,565 shares today in the pre-market hours as of 8:35 AM, representing 10.9% of its average daily volume.

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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 20.0. Currently there are 5 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 963,300 shares per day over the past 30 days. Five Below has a market cap of $2.7 billion and is part of the services sector and specialty retail industry. The stock has a beta of 601.79 and a short float of 20.4% with 6.71 days to cover. Shares are up 57.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Five Below as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and robust revenue growth. However, as a counter to these strengths, we also find weaknesses including premium valuation and poor profit margins.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 250.00% and other important driving factors, this stock has surged by 40.61% over the past year, outperforming the rise in the S&P 500 Index during the same period.
  • When compared to other companies in the Specialty Retail industry and the overall market, FIVE BELOW INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • FIVE's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.42 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The gross profit margin for FIVE BELOW INC is currently lower than what is desirable, coming in at 33.65%. Regardless of FIVE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.47% trails the industry average.

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