Diamonds and Dogs

3/23/16

Keeping it warm even when the name implies it's cold. Retailer, Five Below (FIVE) is jumping 7% to a new 52 week high following better than expected earnings last night. The earnings came in at 77 cents per share beating estimates while revenue came in at $326.4 million ahead of analyst expectations as well. The company has shown impressive revenue growth and EPS growth in recent quarters. RBC Capital Markets raised its price target on the teen-focused deep discounter to 44 from 42. Dougherty & Co. boosted its price target to 53 from 45, and Credit Suisse raised its price target to 40 from 39.

Swooshing downward into the red. Wall Street darling, Nike (NKE) is taking its lumps today down 4% even as earnings easily beat expectations. The company known for being the largest athletic apparel company in the world with one of the most recognizable brands in the NBA and other sports reported strong earnings, but sales missed expectations. Guidance was also light of expectations. In the short term, Under Armour and Adidas may be taking market share. Long term Nike still looks well positions particularly in China.