FI FIVE Five Below, Inc. Common Stock Loading... : Investor Sentiment and Bull/Bear Views

Five Below's same-store sales deceleration is just the law of large numbers and lapping strong numbers, not weakness. The company beat comp expectations 14% versus 10%, has beaten comps in six out of six quarters under CEO Winnie Park, and raised full-year earnings guidance by 14% at the midpoint, implying over 50% growth versus last year. The selloff made the stock cheaper from 27.5 times to under 24 times this year's earnings, and Cramer views that as an incredibly fair price, calling the stock a steal.

Five Below's value-priced, trend-driven offering aimed at kids should hold up in a tougher consumer backdrop, as consumers seek value while parents keep buying for their kids; new management is better at staying on trends and keeping the sales flywheel going.

Five Below is expected to post robust earnings and is in a strong financial position with a decent balance sheet and cash, supporting potential shareholder returns.