Retail Stocks to Buy for Hedge Funds and Investment Banks. This article discusses good buying opportunities in companies which have announced blowout quarters surprising Wall Street bearish analysts.
For those investors who missed the rally in Abercrombie (ANF) on Abercrombie stock forecast announced here, Vieira upgraded shares of Five Below at $28.65 after the company reported a blowout quarter. The fact that Goldman Sachs (GS) remained bearish Five Below (FIVE) as in the case of Abercrombie (ANF) issuing a $14 price target has been seen as positive for Five Below for several reasons.
Abercrombie shares gapped up after earnings report rallying since then, while Five Below (FIVE) shares initially sold off making it a buy on weakness. The investment principle discussed in Five Below was the same as in SolarCity (SCTY) a stellar market performance in the past month rallying more than 120% on an upgrade to Strong Buy.
The performance of Five Below going into 2016 will depend on its ability to continue executing surpassing Wall Street expectations. Currently we have an upside target price set to $35 on this American company.
It is possible that analysts change their opinion with regards to Five Below going into 2016 raising price targets as they did in SolarCity after the tremendous rally, therefore the need for investors to follow up closely share price action going forward. We would not be surprised to see stock analysts raising Five Below price target to $38
Five Below, Inc. will replace UIL Holdings Corp. in the S&P SmallCap 600 after the close of trading on Friday, December 18. UIL Holdings is merging with Iberdrola USA in a deal completed today. Five Below operates as a specialty value retailer. Headquartered in Philadelphia, PA, the company will be added to the S&P SmallCap 600 GICS (Global Industry Classification Standard) Specialty Stores Sub-Industry index.
Investors in Five Below should refer to the existing premium stock chart. Maintain long positions in Five Below while the following conditions are satisfied.
- High buying volume interest compared to selling interest.
- Share price pull back to occur in low volume.
- No violation of the momentum leg.
- Buy rating since $28.65 seen as a good investment opportunity.
With regards to Abercrombie (ANF) the company does not have a long position on the stock anymore since it considers its upside limited to $28 as explained in an article available to live markets premium subscribers. Investors should also refer to Vieira’s comments available on the following video which includes companies discussed in this article.
Five Below shares closed the session at $32.6.