Five Below Stock Surges After Earnings: 3 Things to Know

Shares of Five Below (NASDAQ: FIVE) were trading sharply higher after the company reported terrific earnings results for the fiscal third quarter after the market close on Wednesday.

Investors got a welcome surprise, as the stock had been dropping in the week leading up to the earnings report, but Five Below is executing at a high level despite the supply chain issues challenging many retailers right now.

The stock is not cheap, trading at a relatively high price-to-earnings ratio of roughly 40, but more results like we just saw could support a higher stock price looking ahead to 2022. Here are three things from the report that highlight why Five Below is such a formidable retail business.

Source Fool.com