Five Below (FIVE) Surpassed Expectations in Q4

·2 min read

Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Core Growth Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy outperformed its benchmark index, the Russell 2000 Growth which gained 4.13%. The Russell 2000 Index rose 6.23% in the same period. The stock price strength of healthcare holdings led to the outperformance of the strategy in the quarter relative to the benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Wasatch Small Cap Core Growth Strategy highlighted stocks like Five Below, Inc. (NASDAQ:FIVE) in the Q4 2022 investor letter. Headquartered in Philadelphia, Pennsylvania, Five Below, Inc. (NASDAQ:FIVE) is a specialty value retailer. On March 20, 2023, Five Below, Inc. (NASDAQ:FIVE) stock closed at $199.10 per share. One-month return of Five Below, Inc. (NASDAQ:FIVE) was -4.09%, and its shares gained 19.41% of their value over the last 52 weeks. Five Below, Inc. (NASDAQ:FIVE) has a market capitalization of $11.081 billion.

Wasatch Small Cap Core Growth Strategy made the following comment about Five Below, Inc. (NASDAQ:FIVE) in its Q4 2022 investor letter:

“Another strong stock in the strategy was Five Below, Inc. (NASDAQ:FIVE). A specialty value retailer, the company offers a variety of merchandise at discounted prices. Five Below’s stock price rose sharply in early December after the company reported better-than-expected financial results and guided higher on revenues and earnings. The upbeat news cheered investors who had been concerned about Five Below’s ability to attract shoppers during the upcoming inflation-marred holiday season. We think the company’s debt-free balance sheet, substantial free cash flows, expanding store count and new Five Beyond format—in which prices can go as high as $25 in a designated section of the store—leave Five Below well-positioned for growth even in a potentially difficult retail environment.”

Five Below, Inc. (NASDAQ:FIVE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Five Below, Inc. (NASDAQ:FIVE) at the end of the fourth quarter which was 28 in the previous quarter.

We discussed Five Below, Inc. (NASDAQ:FIVE) in another article and shared ClearBridge SMID Cap Growth Strategy's views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.


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Disclosure: None. This article is originally published at Insider Monkey.