Why Analysts Say Five Below Is a Buy After Earnings
Five Below stock is higher Thursday after the value retailer beat earnings expectations and raised its full-year outlook. Here's what Wall Street has to say.


Five Below (FIVE) stock is soaring up the price charts Thursday after the value retailer beat top- and bottom-line expectations for its fiscal third quarter and raised its full-year outlook.
In the 13 weeks ended November 2, Five Below's revenue increased 14.6% year over year to $843.7 million, boosted by new store openings and a 0.6% rise in comparable-store sales. Its earnings per share (EPS) were up 61.5% from the year-ago period to 42 cents.
"We delivered stronger performance across a broader group of our merchandise worlds compared to the second quarter and improved our operational execution," said Ken Bull, Five Below's interim CEO and chief operating officer, in a statement. "We were encouraged to see the positive results from the initiatives we undertook to add newness and deliver value in key categories."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results topped analysts' expectations. Wall Street was anticipating revenue of $799 million and earnings of 17 cents per share, according to CNBC.
As a result of its performance, Five Below raised its full-year outlook. The company now expects to achieve revenue in the range of $3.84 billion to $3.87 billion and earnings per share of $4.78 to $4.96. This compares to its previous forecast for revenue of $3.73 billion to $3.8 billion and EPS between $4.35 to $4.71.
For its fiscal fourth quarter, Five Below expects revenue in the range of $1.35 billion to $1.38 billion and earnings per share of $3.23 to $3.41.
In a separate release, Five Below named Winnie Park as its new CEO, effective December 16. Park most recently served as the CEO of fashion retailer Forever 21 since January 2022.
Is Five Below stock a buy, sell or hold?
Five Below has had a rough go of it on the price charts, down 45% for the year to date. Yet, Wall Street is bullish on the consumer discretionary stock.
According to S&P Global Market Intelligence, analyst's average price target of $119.95 represents implied upside of more than 3% to current levels. Additionally, the consensus recommendation among the 23 covering analysts it tracks is Buy.
Financial services firm UBS Global Research is one of those with a Buy rating on the mid-cap stock. The group also raised its price target to $150 from $108 following the earnings release.
"Despite the sequential improvement in the third quarter, FIVE is still in the early innings with respect to its multitude of initiatives to stabilize the business," says UBS Global Research analyst Michael Lasser.
The analyst adds that these initiatives include "investments in labor, SKU rationalization, and enhancements to its price and value perception, as well as improved product newness and innovation. As these investments bear fruit, we think the retailer's potential should become more apparent."
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Are You a Retirement Millionaire Too Scared To Spend?
If you are too scared to spend money in retirement, you may be saddled with regret. Here are three ways to safely enjoy your sizable retirement nest egg.
By Donna Fuscaldo Published
-
U.S. Treasury to Eliminate Paper Checks: What It Means for Tax Refunds, Social Security
Treasury President Trump signed an executive order forcing the federal government to phase out paper check disbursements by the fall.
By Gabriella Cruz-Martínez Published
-
Seven Questions to Ask When Evaluating Personal Loan Options
Taking out a personal loan too hastily could lock you into unfavorable terms with an untrustworthy lender. Ask these questions before signing anything.
By David Kimball Published
-
How Much Does Being Rich Matter in Retirement?
After a certain point, having more money in retirement won't make you any happier, new research shows. Instead, physical health, a sense of purpose, and a minimal amount of non-mortgage debt are more relevant.
By Christy Bieber Published
-
The Three Biggest Fears Keeping Retirees Up at Night
Here are the steps you can take to put those fears to rest and retire with confidence so you can relax and enjoy the life you've planned.
By Pam Krueger Published
-
What Can a Donor-Advised Fund Do for You? (A Lot)
DAFs and private foundations go about helping charities (and those who donate) in different ways. Each comes with its own benefits and restrictions to navigate.
By Julia Chu Published
-
Estate Planning When You Have International Assets
Estate planning gets tricky when you have assets and/or beneficiaries outside the U.S. To avoid costly inheritance mistakes, it pays to understand the basics.
By Kelsey M. Simasko, Esq. Published
-
Microsoft Stock: Innovation Spurs Its 100,000% Return
Microsoft's ability to recognize the "next big thing" has allowed sales – and its share price – to grow exponentially over the years.
By Louis Navellier Published
-
Three Essential Estate Planning Steps to Protect Your Nest Egg
After dedicating years to building your wealth and securing your future, make sure your assets are protected and your loved ones are provided for in the future.
By Nicole Farbo, CFP® Published
-
Is Chasing the American Dream Ruining Your Financial Life?
Too many people focus on visible affluence as a marker of success. Here's how to avoid succumbing to the pressure and driving yourself into debt.
By Anthony Martin Published