economy
Move over Labubu, ‘Mystery Dumpling’ is the new hot collectible. This stock could benefit
The mystery squishy dumpling, created by toy manufacturer RMS USA, is the latest viral toy trend gaining traction on TikTok and other online platforms.
TL;DR
- Five Below is capitalizing on the viral 'Mystery Dumpling' toy trend, according to Wolfe Research.
- The mystery dumplings are packaged in blind boxes, similar to popular trends from last year.
- Analysts believe this trend is driving incremental traffic, higher ticket sales, and increased brand awareness for Five Below.
- The trend could contribute significantly to comparable store sales momentum if sustained.
- Analysts have raised the price target for Five Below stock, implying a substantial upside potential.
- The trend's success mirrors that of the Labubu dolls, which previously boosted its maker's revenue and shares.
- While acknowledging trends can be fleeting, Five Below's ability to chase and integrate them is seen as a positive.
- Google Trends data shows accelerating interest in both Five Below and 'Squishy Dumplings'.
- Shares of Five Below have seen significant gains year-to-date and over the past 12 months.