Five Below, Inc. Common Stock
FIVE
$0.00
+0.20%
Five Below is a specialty value retailer operating in the discount stores industry. It has established itself as a leading destination for trend-right products, leveraging a focused assortment and a growing store footprint to capture the value-conscious consumer segment.
FIVE
Five Below, Inc. Common Stock
$0.00
Related headlines
Investment Opinion: Should I buy FIVE Today?
Based on a synthesis of strong fundamentals, positive analyst sentiment, and a reasonable growth-adjusted valuation (PEG 0.72), the objective data supports a 'Buy' rating for investors with a higher risk tolerance and a long-term horizon. The company's operational turnaround under new leadership is credible. However, this rating is heavily qualified by the stock's extended price and valuation, making it unsuitable for risk-averse investors. Entry points should be strategic, acknowledging the potential for near-term volatility.
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FIVE 12-Month Price Forecast
The fundamental story is exceptionally strong, justifying a bullish stance. However, confidence is tempered to 'medium' due to the stock's elevated price and valuation, which make it highly sensitive to any disappointment. The risk/reward is favorable for growth investors, but timing is critical.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Five Below, Inc. Common Stock's 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
8 analysts
Implied Upside
—
vs. current price
Analyst Count
8
covering this stock
Price Range
$0 - $0
Analyst target range
Wall Street analyst sentiment is overwhelmingly positive. Recent institutional ratings from March 2026 show a consensus of 'Buy' or equivalent ratings, with firms including Deutsche Bank, B of A Securities, JP Morgan (Overweight), Wells Fargo (Overweight), UBS, and Guggenheim all maintaining bullish stances. Mizuho maintained a 'Neutral' rating. The analyst data also includes forward-looking estimates, with an average EPS estimate of $10.09 and an average revenue estimate of approximately $6.41 billion, indicating expectations for continued strong performance. The high level of analyst coverage and predominantly positive ratings reflect strong confidence in the company's strategy and execution.
Bulls vs Bears: FIVE Investment Factors
Five Below presents a compelling but high-stakes investment case. The company is executing a powerful turnaround, evidenced by explosive revenue growth and a remarkable recovery in profitability, which has fueled a massive stock rally. However, this success is largely reflected in the stock price, which trades at premium multiples near its all-time high, introducing significant valuation and momentum risk.
Bullish
- Exceptional Revenue Growth: Q4 revenue grew 24.3% YoY, demonstrating strong consumer demand.
- Dramatic Profitability Recovery: Net margin surged to 13.8% in Q4 from 0.2% a year prior.
- Strong Analyst Consensus: 7 out of 8 major analysts maintain Buy or Overweight ratings.
- Robust Free Cash Flow: TTM FCF of $411.7M supports growth and financial flexibility.
Bearish
- Extended Valuation Multiples: Trailing P/E of 29.5 is high, demanding flawless execution.
- Price Near All-Time High: Stock trades just 3.8% below its 52-week high of $237.50.
- Consumer Cyclical Sensitivity: Business is vulnerable to economic downturns and stagflation fears.
- High Beta and Volatility: Beta of 1.1 implies above-market volatility and drawdown risk.
FIVE Technical Analysis
The stock has demonstrated exceptional long-term strength, surging 204.94% over the past year and significantly outperforming the broader market. The 6-month gain of 45.85% further underscores this powerful uptrend, which has been driven by strong fundamental performance and positive investor sentiment. Over the short term, the stock has continued its ascent, rising 2.21% over the past month and 21.30% over the past three months, both periods showing substantial outperformance relative to the S&P 500. The most recent price action shows the stock closing at $228.48 on March 31, 2026, a gain of 3.94% from the previous day's close. The current price of $228.48 is near the top of its 52-week range of $52.38 to $237.50, trading just 3.8% below the 52-week high. This positioning indicates the stock is in a strong technical uptrend with momentum, though it may be approaching a potential resistance level.
Beta
1.07
1.07x market volatility
Max Drawdown
-36.2%
Largest decline past year
52-Week Range
$52-$238
Price range past year
Annual Return
+188.9%
Cumulative gain past year
| Period | FIVE Return | S&P 500 |
|---|---|---|
| 1m | +6.2% | -4.3% |
| 3m | +21.7% | -4.0% |
| 6m | +50.8% | -2.0% |
| 1y | +188.9% | +22.2% |
| ytd | +21.7% | -3.8% |
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FIVE Fundamental Analysis
Revenue growth has been robust, with the most recent quarterly revenue of $1.73 billion representing a 24.27% year-over-year increase. Profitability has improved significantly, with the net margin for the latest quarter at 13.78%, a substantial recovery from the 0.2% margin reported in the Q3 of the prior fiscal year. The company's quarterly net income surged to $238.2 million, demonstrating strong operational execution. The company maintains a solid financial position with a current ratio of 2.01, indicating good short-term liquidity. The debt-to-equity ratio stands at 0.93, which is a manageable level of leverage. Free cash flow generation is strong, with trailing twelve-month free cash flow reported at $411.7 million, providing ample resources for growth initiatives and potential shareholder returns. Operational efficiency metrics are healthy, with a Return on Equity (ROE) of 16.35% and a Return on Assets (ROA) of 6.16%. The company's asset turnover and inventory management have shown improvement, supporting its expanding profitability.
Quarterly Revenue
$1.7B
2026-01
Revenue YoY Growth
+0.24%
YoY Comparison
Gross Margin
+0.37%
Latest Quarter
Free Cash Flow
$411687000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is FIVE Overvalued?
Given the company's positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. The trailing P/E ratio is 29.49, while the forward P/E is 25.20, based on estimated future earnings. The PEG ratio of 0.72, based on the forward P/E, suggests the stock may be reasonably valued relative to its expected growth rate. The Price-to-Sales (P/S) ratio is 2.22 and the Enterprise Value-to-Sales (EV/Sales) is 2.88, providing additional context. Data for direct industry average comparisons is not available in the provided inputs, making a precise peer valuation assessment difficult. However, the forward P/E in the mid-20s, coupled with a PEG ratio below 1, indicates the market is pricing in strong future growth, which appears justified by recent financial performance.
PE
29.5x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 7x~782x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
18.3x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risk for Five Below is valuation and momentum. The stock has soared over 200% in the past year and trades near its 52-week high with a trailing P/E of 29.5. A failure to meet elevated growth expectations or a broader market pullback could trigger a sharp correction, as seen by the stock's historical max drawdown of -37.9%. The company's beta of 1.1 confirms it is more volatile than the market.
Operational and macroeconomic risks are also present. As a consumer cyclical retailer, Five Below is exposed to economic downturns, inflationary pressures on costs, and potential shifts in discretionary spending. Recent news highlights stagflation fears, which could pressure consumer wallets. Furthermore, the discount retail sector is fiercely competitive, requiring constant innovation and efficient inventory management to maintain margins and market share.
FAQ
The key risks are valuation and momentum-based, as the stock trades just 3.8% below its 52-week high after a 205% yearly gain. A slowdown in growth or margin compression could trigger a sharp decline. As a consumer cyclical retailer, FIVE is exposed to economic downturns and inflation. Its beta of 1.1 also indicates it will likely experience greater volatility than the overall market.
The 12-month outlook is positive but bifurcated. The base case (50% probability) sees a trading range of $220-$250, assuming execution meets current analyst EPS estimates of ~$10.09. The bull case (30%) could drive the stock toward $260-$285 on continued outperformance. The bear case (20%) risks a pullback to the $160-$200 range if macroeconomic or company-specific challenges emerge.
FIVE appears fairly valued to slightly overvalued on an absolute basis with a trailing P/E of 29.5, but its growth-adjusted valuation is more attractive. The forward P/E is 25.2 and, crucially, the PEG ratio is 0.72 based on forward estimates. A PEG below 1.0 typically suggests the stock's price may not fully reflect its growth potential, indicating it could be reasonably valued relative to its expected earnings growth rate.
For growth-oriented investors with a higher risk tolerance, FIVE is a good buy based on its strong fundamental turnaround, including 24% revenue growth and a net margin recovery to 13.8%. The consensus among 7 out of 8 covering analysts is Buy or Overweight. However, its position near all-time highs and a trailing P/E of 29.5 means it carries significant valuation risk, making strategic entry points important.
FIVE is more suitable for a long-term investment horizon. While short-term momentum is strong, the stock's premium valuation and cyclical nature make it prone to volatility, which long-term investors can better weather to capture the company's store growth and market share expansion story. Short-term trading is high-risk given the stock's elevated technical levels and sensitivity to quarterly earnings reports.