Cramer says buy this retail stock after the market got its latest quarter all wrong
CNBC’s Jim Cramer said Wall Street is misreading Five Below’s latest quarter by focusing on slowing comparable sales growth despite another beat and raise.
TL;DR
- Jim Cramer advises investors to buy Five Below stock, stating the market is misreading its latest quarterly results.
- The discount retailer beat fiscal second-quarter expectations and raised its full-year guidance, but its stock gains were short-lived.
- Cramer believes investors are overly focused on decelerating comparable sales growth, which is a natural effect of large numbers, and not on the company's overall strong performance.
- Under CEO Winnie Park, Five Below has beaten expectations for six consecutive quarters, indicating her strategy is working.
- The company's new full-year comparable sales forecast is 10% to 12% growth, up from 6% to 8%, and its adjusted earnings outlook was also boosted.
- Cramer noted that Five Below's stock now trades at a more attractive valuation, making it a "steal" at current prices.