Cramer Backs Five Below at 24 Times Earnings After Raised Outlook
Updated
Updated · CNBC · Sep 3
Cramer Backs Five Below at 24 Times Earnings After Raised Outlook
3 articles · Updated · CNBC · Sep 3
Summary
Five Below's muted post-earnings reaction created a buying opportunity, Jim Cramer said, arguing investors focused too heavily on slowing comparable-sales growth instead of the quarter's stronger profit picture.
Another earnings beat and a higher company outlook drove that case, with Cramer saying the upgraded forecast leaves the stock trading at roughly 24 times earnings.
Wall Street's read of the report turned on the slowdown in same-store sales growth, even though the company still delivered better earnings and lifted guidance.