In the stock market today, S&P 500 and NASDAQ both declined 0.8% to 3,831 and 11,360, respectively.
Retail stocks have been weak performers recently, but that was partially due to stimulus checks that hit American mailboxes a year ago. As such, year-over-year comparisons are tough. Great long-term winners, however, like Five Below (FIVE) look like bargains.
Chart of the Day
Our chart of the day is the ten-year chart of FIVE.
FIVE is a dollar-store concept for kids and teens that sells merchandise such as toys, games, party items, sports gear, clothes, candy and electronics for $1 to $5.55 each. This company has the fastest dollar-store concept of all the dollar-stores, including Dollar Tree and Dollar General.
FIVE has been one of the best retail concepts around, as same store sales have increased 15 consecutive years. It has no debt and has been buying back shares.
The company has a solid Estimated Long-Term Growth Rate of 25% annually. FIVE is part of the Growth Portfolio. With a P/E of only 24, this is one of the best bargains in my coverage.
