Does Five Below (FIVE) Have a Strong Long-Term Outlook?

ClearBridge Investments, an investment management company, released its “ClearBridge SMID Cap Growth Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy outperformed the Russell 2500 Growth benchmark. On an absolute basis, the strategy gained in nine of the 10 sectors it was invested in the quarter. Industrials, health care, and consumer discretionary sectors were the leading contributors while communication services detracted from the performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.

ClearBridge SMID Cap Growth Strategy highlighted stocks like Five Below, Inc. (NASDAQ:FIVE) in the Q4 2022 investor letter. Headquartered in Philadelphia, Pennsylvania, Five Below, Inc. (NASDAQ:FIVE) is a specialty value retailer. On March 2, 2023, Five Below, Inc. (NASDAQ:FIVE) stock closed at $201.87 per share. One-month return of Five Below, Inc. (NASDAQ:FIVE) was 1.08%, and its shares gained 34.89% of their value over the last 52 weeks. Five Below, Inc. (NASDAQ:FIVE) has a market capitalization of $11.207 billion.

ClearBridge SMID Cap Growth Strategy made the following comment about Five Below, Inc. (NASDAQ:FIVE) in its Q4 2022 investor letter:

“Five Below, Inc. (NASDAQ:FIVE), which operates as a specialty value retailer for products including apparel, accessories, novelty items, décor, cosmetics and accent furniture, exceeded expectations in the third quarter and raised its fourth quarter outlook, reflecting continued progress in store expansion and expansion of their higher priced product categories. The company’s position as a value retailer is enabling it to hold up well in a tepid environment for consumer discretionary spend.”

Five Below, Inc. (NASDAQ:FIVE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Five Below, Inc. (NASDAQ:FIVE) at the end of the fourth quarter which was 28 in the previous quarter.

We discussed Five Below, Inc. (NASDAQ:FIVE) in another article and shared Giverny Capital’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.