Five Below
FIVE
$220.37
-2.59%
Five Below Inc. is a specialty value retailer operating in the Discount Stores industry, offering a broad range of trend-right, high-quality products primarily targeting teens and pre-teens. The company has established itself as a distinct growth-oriented disruptor in the value retail space, leveraging a curated, low-price-point model to capture discretionary spending. The current investor narrative is dominated by a powerful turnaround story, as the company has recently posted strong quarterly results that defied earlier concerns about tariff impacts, leading to significant stock appreciation and renewed confidence in its growth trajectory under new leadership.…
FIVE
Five Below
$220.37
Related headlines
FIVE 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Five Below's 12-month outlook, with a consensus price target around $286.48 and implied upside of +30.0% versus the current price.
Average Target
$286.48
8 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
8
covering this stock
Price Range
$176 - $286
Analyst target range
Analyst coverage is active with 8 firms providing estimates, and recent institutional ratings show a unanimously bullish sentiment, with 10 consecutive 'Buy' or equivalent ratings in March 2026 and no downgrades. The consensus is strongly bullish, though a specific average target price is not provided in the data; the implied upside must be calculated from available estimates, with the average estimated EPS for the next period at $10.14, which, when combined with the forward PE, suggests a high degree of confidence in the company's guidance. The target range, inferred from estimated EPS, shows a low of $9.31 and a high of $10.84, indicating a relatively tight spread of about 15%, which signals strong analyst conviction in the company's near-term earnings trajectory, with the high target likely assuming continued market share gains and margin expansion, while the low target may factor in potential consumer spending volatility.
FIVE Technical Analysis
The stock is in a sustained, powerful uptrend, evidenced by a 94.87% gain over the past year. With a current price of $227.36, it is trading near the upper end of its 52-week range, approximately 82% of the way from its 52-week low of $113.41 to its high of $251.63, indicating strong momentum but also potential for overextension. Recent momentum shows a divergence, with a 1.71% gain over the past three months but a slight 0.34% decline over the past month, suggesting a potential consolidation or pullback within the larger uptrend, especially as the stock's 1-month relative strength of -6.65 indicates recent underperformance versus the broader market. Key technical levels are clear, with immediate support at the 52-week low of $113.41 and resistance at the 52-week high of $251.63; a breakout above resistance would confirm the bullish trend's resumption, while a sustained move below the recent low of $208.15 could signal a deeper correction. The stock's beta of 1.004 indicates market-average volatility, which, combined with a maximum drawdown of -15.97% over the provided period, suggests it has exhibited relatively controlled risk within its strong uptrend.
Beta
1.00
1.00x market volatility
Max Drawdown
-16.0%
Largest decline past year
52-Week Range
$119-$252
Price range past year
Annual Return
+87.5%
Cumulative gain past year
| Period | FIVE Return | S&P 500 |
|---|---|---|
| 1m | -4.4% | +5.4% |
| 3m | -0.1% | +10.9% |
| 6m | +30.8% | +11.0% |
| 1y | +87.5% | +28.1% |
| ytd | +13.9% | +11.4% |
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FIVE Fundamental Analysis
Revenue growth is robust and accelerating, with the most recent quarterly revenue of $1.728 billion representing a 24.27% year-over-year increase, a significant acceleration from the prior-year Q4 growth trend. Segment data shows Leisure as the largest contributor at $766 million, followed by Fashion and Home at $547 million, indicating balanced growth across product categories. Profitability is strong and margins are expanding impressively; net income for the quarter was $238.2 million, translating to a net margin of 13.78%, while the gross margin of 37.49% represents a substantial recovery and expansion from the 30.58% gross margin reported in the year-ago Q3, demonstrating effective cost management and pricing power. The balance sheet and cash flow position are healthy, with a current ratio of 2.01 indicating strong short-term liquidity, a debt-to-equity ratio of 0.93 showing moderate leverage, and trailing twelve-month free cash flow of $411.7 million providing ample internal funding for growth initiatives, further supported by a return on equity of 16.35% which signals efficient use of shareholder capital.
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 substantial positive net income, the primary valuation metric selected is the Price-to-Earnings (PE) ratio. The trailing PE ratio stands at 29.49x, while the forward PE is 24.86x; the lower forward multiple suggests the market expects earnings growth to outpace the current stock price appreciation. Compared to sector averages, the stock's valuation appears elevated; for instance, its Price-to-Sales ratio of 2.22x and EV/EBITDA of 18.30x are likely at a premium to discount retail peers, a spread that may be justified by its superior growth profile and margin expansion narrative. Historically, the current trailing PE of 29.49x is significantly above the stock's own historical range seen in recent quarters, such as the 11.10x reported at the end of Q4 2025, indicating the market is pricing in highly optimistic future expectations and that the stock is trading near the top of its own valuation band, leaving little room for error.
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
