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.
-
Ten Cheapest Places to Live in Texas
Property Tax Looking for a cheap place to live in Texas? Look no further. These counties have the lowest property tax bills in the Lone Star State.
-
AI Is Missing the Wisdom of Older Adults: What It Means for You
AI will increasingly affect your healthcare and finances, but young workers are primarily designing the systems and getting most of the jobs.
-
The Three C's to Financial Success: A Financial Planner's Guide to Build Wealth
Consistency, commitment and confidence in your chosen strategy are more critical to your financial success than finding the 'perfect' financial plan.
-
A Financial Adviser's Guide to Solving Your Retirement Puzzle: Five Key Pieces
If retirement's a puzzle you're struggling with, try answering these five questions. The answers will guide you toward a solution.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?
If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or Relocate
Homeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and Friends
What starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
Stock Market Today: Good Feelings and Solid Data Lift Stocks
Resilience and de-escalation defined another generally positive day for financial markets.
-
What the HECM? Combine It With a QLAC and See What Happens
Combining a reverse mortgage known as a HECM with a QLAC (qualifying longevity annuity contract) can provide longevity protection, tax savings and liquidity for unplanned expenses.
-
721 UPREIT DSTs: Real Estate Investing Expert Explores the Hidden Risks
Potential investors need to understand the crucial distinction between a REIT's option to buy a Delaware statutory trust's property and its obligation.