Total Return: +41%
Last but not least, we have the outlier in this young-gun category: one that’s both publicly traded and still popular.
Discount retailer Five Below (FIVE) has been on the public markets for just more than a year, and so far, its “hot stuff, cool prices” motto seems to be pretty accurate. The company offers everything from T-shirts to nail polish to movies to bedazzled iPhone cases, divided into “worlds” and all priced within a range of $1 to $5.
And teens are loving it. As InvestorPlace IPO expert Tom Taulli noted late last year, a new store location has a payback period of less than a year, and sales have been soaring. The company improved sales every quarter since its offering, with eye-popping average growth of more than 50% from fiscal 2009 to 2011.
That has meant success on the bottom line, too. The company’s first two quarterly reports following its IPO saw earnings per share come in four times and three times analyst expectations. And during the next five years, earnings are expected to grow at an annual rate of 31%.
Of course, while Five Below is “in” right now, the key is staying there. And as the previous three examples have shown, that won’t be easy.
As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities.