Should You Hold Five Below (FIVE)?

ClearBridge Investments, an investment management firm, released its third-quarter 2023 “Mid Cap Growth Strategy” investor letter, a copy of which can be downloaded here. The strategy underperformed its benchmark Russell Midcap Growth Index in the quarter. Overall, the effects of stock selection impacted the performance on a relative basis. The strategy gained three of the 11 sectors it was invested during the quarter on an absolute basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.

ClearBridge Mid Cap Growth Strategy highlighted stocks like Five Below, Inc. (NASDAQ:FIVE) in the third quarter 2023 investor letter. Headquartered in Philadelphia, Pennsylvania, Five Below, Inc. (NASDAQ:FIVE) is a specialty value retailer. On December 12, 2023, Five Below, Inc. (NASDAQ:FIVE) stock closed at $196.39 per share. One-month return of Five Below, Inc. (NASDAQ:FIVE) was 6.69%, and its shares gained 9.62% of their value over the last 52 weeks. Five Below, Inc. (NASDAQ:FIVE) has a market capitalization of $10.839 billion.

ClearBridge Mid Cap Growth Strategy made the following comment about Five Below, Inc. (NASDAQ:FIVE) in its Q3 2023 investor letter:

“Specialty value retailer Five Below, Inc. (NASDAQ:FIVE) also lowered its full year guidance after an unexpected uptick in theft weighed on its quarterly performance. However, management is taking loss mitigation initiatives. We believe this industry-wide problem can be overcome by the compelling growth and margin improvements the company is poised for over the next few years.”

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Five Below, Inc. (NASDAQ:FIVE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Five Below, Inc. (NASDAQ:FIVE) at the end of third quarter which was 37 in the previous quarter.

We discussed Five Below, Inc. (NASDAQ:FIVE) in another article and shared TimesSquare Capital U.S. Mid Cap Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 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.