2023-05-30 15:09:30 ET
Five Below ( NASDAQ: FIVE ) traded lower on Tuesday amid a weak day overall for a large portion of the consumer sector.
The upside potential for the stock was defended by UBS with the firm having the view results for the current quarter are trending in line with current consensus expectations, despite the increasingly pressured discretionary spending environment. Five Below ( FIVE ) was also noted to have received a boost from t-shirts and posters related to the Super Mario Bros. film
Analyst Michael Lasser said the firm believes FIVE's value proposition offers it protection amid the challenged macro backdrop relative to other discretionary-spending focused peers. Given the good start to the year, Lasser does not expect FIVE to make any changes to its comparable sales outlook, which stands at +1% to +4% growth for FY23.
UBS has a Buy rating on Five Below ( FIVE ) and 12-month price target of $240.
Shares of Five Below ( FIVE ) dipped 1.47% in late Tuesday trading to $174.95, which is the lowest trading level since early January. Short interest on Five Below ( FIVE ) stands at 7.0% of total float. Five Below ( FIVE ) is due to report earnings on June 1.
Sector watch: While the unrelenting inflation pressures on consumers have been well documented, Seeking Alpha analyst Macrotips Trading reminded that the retail sector has another headwind to confront this year. The warning was sounded that student loan payments that have been paused for over three years are set to resume before the end of August in a development that will financially pressure as many as 43M Americans.
More on Five Below
- Five Below earnings estimates and track record
- Growth metrics on Five Below
- Relative strength index and moving averages
- Seeking Alpha's Quant Rating for Five Below
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Five Below is tipped by UBS to post a solid earnings report