CNBC’s Jim Cramer said investors can afford waiting to buy the roaring shares of off-price retailer Five Below.
With the stock up over 40 percent just in the past week, the “Mad Money” host said on Friday that it could actually be smarter for investors to wait until the hype dies down.
“At these levels the stock isn’t exactly cheap — it’s [selling for] 33 times next year’s earnings estimates,” he said. “If you owned Five Below going into this amazing quarter … I want you to feel free to ring the register on part of your position.”
For investors who want to buy Five Below, Cramer recommended they wait until the next marketwide pullback.
“I wouldn’t be surprised if you get a better buying opportunity here, as long as you’re patient,” he said. “Five Below is a phenomenal long-term story, which is why you don’t need to feel any pressure to buy it immediately. I want you to take your time after this monster move, wait for a better entry point, and then, and really only then, you can pounce.”