6. Five Below, Inc. (NASDAQ:FIVE)
Five Below, Inc. (NASDAQ:FIVE) made our Mad Money recap as Jim Cramer shared his take on the stock and highlighted resilient consumer spending despite the Iran conflict. Cramer was bullish on the stock, as he said:
Five Below, the uber-discretionary play, has triumphed over all the other inexpensive shops. I had it on last week. I think it’s staying strong.
Five Below, Inc. (NASDAQ:FIVE) sells a wide range of low-priced essentials, decor, tech accessories, toys, crafts, snacks, and seasonal items. During the March 19 episode, Cramer noted that he believes that the stock has “got more room to run.” The Mad Money host commented:
Last night, we got an incredible set of numbers from Five Below. The discount retailer’s made a monster move over the past 12 months, and the stock shot up more than 10% today. You just can’t keep a good stock down, can you? This spectacular quarter almost came out of nowhere… There was some concern, real concern, that Five Below might blow up. Instead, Five Below shot the lights out. How’d they do it? Okay, keep in mind that Five Below has been roaring in large part because the company’s under new management. When the old CEO stepped down in July of ‘24, he was not doing that good a job, frankly. The company was having an identity crisis, making a push to sell product that costs more than $5 while pursuing an aggressive growth plan.
After a period with an interim CEO, Five Below brought in Winnie Park from Forever 21 of all places… to take the reins in December of 2024. And Park is a miracle worker. She transformed the company, reshuffled management, expanded Five Below’s target demographic to include younger children. At the same time, she’s embraced social media and made it a top priority to quickly capitalize on new trends, which is the way it started out. That was the roots of Five Below. Now, this is part of a huge strategy shift, though… These moves have paid off as the stock caught fire last year. It is still on fire now. When Five Below reported last night, expectations were high, and they still managed to beat the stuffing out of the estimates.
… Put it all together, and you can see why Five Below pulled away from the dollar stores this quarter. The company has delivered several incredibly strong quarters in a row at this point. And through its guidance, it’s indicating that it should keep going higher. I know it seems odd, but I think it will. The bottom line: At the end of the day, this turnaround’s all about management. Under the leadership of Winnie Park, Five Below has become a company that knows its target customer and is serving that customer incredibly well. Stock has already more than tripled over the last 12 months, and even after today’s magnificent move, you know what? I think it’s got more room to run.
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Click to continue reading and see Jim Cramer’s 5 Stock Calls and the Truth About Strong Consumer Spending Despite the Iran Conflict.
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