Dallas, Texas 12/09/2013 (Financialstrend) – Recently the famous discount retailer Five Below Inc (NASDAQ:FIVE) reported its third quarter earnings and posted a revenue growth that is equivalent to double-digit. But everybody was surprised when the company. As per the company for the current fiscal quarter they have forecasted 49 cents to 51 cents of per share adjusted earnings and revenue of $214 million to $217 million.
Five Below Inc (NASDAQ:FIVE) have always targeted teens and preteen shoppers and sells different variety of stuff such as headphones and nail polish that are priced below $5 or even less. It was in July 2012 when the company went public and since then it has been posting same store sales growth. The latest period even witnessed improvement in same store sales by 9%.
Oversold Territory to be exploited by five below
Warren Buffett who is a legendary investor has advised that you need to be fearful when everybody is greedy and be greedy when others are fearful. He further says that in order to measure the level of fear in a given stock you can full use of the technical analysis indicator that is called as Relative Strength Index (RSI). The main purpose of the Relative Strength Index is to measure the momentum on a scale of zero to 100. You can consider a stock to be oversold if the RSI reading falls below 30.
The Friday trading also showed that the shares of the Five Below Inc (NASDAQ:FIVE) entered into the oversold territory and showed an RSI rating of 29.9. The share price even went as low as $45 per share. If we compare the current RSI reading of the S&P 500 ETF (SPY) which is 60.4 then a bullish investor could consider the current RSI rating of the Five Below as an entry point opportunity to buy.