By 17% in 2025, is it time to buy this growing growth stock and stay for the long run?

  • The competitive background of the industry does not interfere with the impressive growth trajectory of this company.

  • Tariffs continue to create uncertainty, but this business is shifting its supply to products to navigate the situation.

  • Investors who give growth priority should not be surprised that the action is not cheap.

  • 10 shares we like better than five below ›

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One of the most popular investment strategies is based on finding a business that can quickly increase its revenue and revenue. By putting money into these opportunities, investors hope they can generate a strong return on the portfolio.

There is one growth of growth to 17% in 2025 (June 10). This performance imposes 2% profit on S&P 500 index (Snpindex: ^gspc)S But investors may not be familiar with this business, given that it carries a market cap of just $ 6.8 billion.

Maybe now it’s a good time to look more closely. Do you have to buy this uplifting stock and keep it in the long run?

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When they mention adverse features such as a low profit margin, without switching costs, low entry barriers, and ever -changing tastes of consumers, investors can decide to avoid fully the retail sector, which is perhaps the most competitive market there. This setting makes it a challenge for companies to find lasting success.

Five below (Nasdaq: five) has done this by focusing on a younger demographic group of goods, usually at a price of less than $ 5S The company’s financial impulse is remarkable. Revenue jumped by 19.5% compared to a year to $ 970.5 million in the last fiscal quarter (Q1 2025 ended on May 3), Beat Wall Street ratingsS This highest line profit helped to achieve a 7.1% increase in sales of the same stores.

Growth is the key topic for five below. The number of stores of the company expanded at an exciting pace, passing from 385 at the end of Q1 2015 to 1826 from the last fiscal neighborhood.

The long -term goal is to get the number of the store to 3500. If five below can achieve this goal and approximately double their physical imprint, there is no doubt in my mind that its sales and profits will be significantly higher than they are today. That’s what shareholders want.

Retail dealers do extremely well when the wider economy is in strong shape because consumers tend to spend more free in this type of positive environment. This leads to more revenue. Five below is not different.

However, the company is not immunized against macro backgroundS I believe there are two important areas that investors need to focus on.

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