Five Below: Perfect Blend of Value and Discretionary Spending
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 02 2026
0mins
Should l Buy FIVE?
Source: NASDAQ.COM
- Strong Market Performance: Five Below successfully attracts budget-conscious consumers by offering trendy merchandise at reasonable prices, establishing itself as a shopping destination and standing out in the retail market.
- Upgraded Earnings Expectations: Eight analysts have raised the current year earnings estimate from $6.12 to $7.84, with next year's EPS expected to grow by 13.8%, indicating strong profit growth potential for the company.
- Expansion Potential: Five Below has significant store growth opportunities across the U.S., making it one of the best expansion engines in specialty retail, which is expected to provide investors with sustained earnings growth and long-term valuation support.
- Stable Consumer Demand: In a market where consumers are still hunting for deals, Five Below's business model effectively meets the demand for fun products, ensuring its competitive advantage in the retail industry.
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Analyst Views on FIVE
Wall Street analysts forecast FIVE stock price to fall
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 225.060
Low
132.00
Averages
193.47
High
242.00
Current: 225.060
Low
132.00
Averages
193.47
High
242.00
About FIVE
Five Below, Inc. is a specialty value retailer offering merchandise targeted at the tween and teen demographics. Its assortment of products, including select brands and licensed merchandise. It is engaged in offering a group of products, including leisure, fashion and home, and snacks and seasonal. Leisure includes items such as sporting goods, games, toys, tech, books, electronic accessories, arts and crafts, and party. Fashion and home include items, such as personal accessories, attitude t-shirts, beauty offerings, home goods and storage options. Snack and seasonal include items, such as seasonal goods, greeting cards, candy and other snacks, and beverages. It also offers its merchandise on the Internet, through its fivebelow.com e-commerce Website, offering home delivery and the option to buy online and pick up in store. It also sells its merchandise through on-demand third-party delivery services to enable its customers to shop online and receive convenient delivery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Inventory Acquisition Advantage: By acquiring 63 former Big Lots locations, Ollie's secured prime retail real estate, further solidifying its position in the value retail market, with a long-term goal of expanding store count to over 1,300, nearly double its current footprint.
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- Changing Market Dynamics: As retail pressures increase, more clearance goods are available at discounted prices, while fewer buyers are competing, enhancing Ollie's sourcing advantages and further solidifying its market position.
See More
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- Strong Market Performance: Five Below successfully attracts budget-conscious consumers by offering trendy merchandise at reasonable prices, establishing itself as a shopping destination and standing out in the retail market.
- Upgraded Earnings Expectations: Eight analysts have raised the current year earnings estimate from $6.12 to $7.84, with next year's EPS expected to grow by 13.8%, indicating strong profit growth potential for the company.
- Expansion Potential: Five Below has significant store growth opportunities across the U.S., making it one of the best expansion engines in specialty retail, which is expected to provide investors with sustained earnings growth and long-term valuation support.
- Stable Consumer Demand: In a market where consumers are still hunting for deals, Five Below's business model effectively meets the demand for fun products, ensuring its competitive advantage in the retail industry.
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- Momentum Investment Strategy: Investors are shifting towards momentum stocks like Five Below, Permian Resources, and Alcoa when value or growth investing fails to yield desired profits, leveraging the adage 'the trend is your friend' to capitalize on prevailing market trends for sustained gains.
- Five Below Performance: Targeting the teenage market, Five Below's stock surged 250.8% over the past year, despite a 2.9% decline in the past week, with a Momentum Score of A indicating robust market performance and potential for future growth.
- Permian Resources and Alcoa: Permian Resources' stock rose 81.6% over the past year but fell 6.5% in the last week, while Alcoa's stock surged 191.1% but dropped 1.5% recently, with Momentum Scores of B and A respectively, highlighting their market potential.
See More
Tariff Volatility Impacts Retail Investing
- Ollie's Growth Amid Disruption: Ollie's Bargain Outlet opened a record 86 new stores in fiscal 2025, with Q4 net sales increasing 17% year-over-year to approximately $779 million, demonstrating strong performance amid tariff disruptions, as management stated, 'Tariffs are just another form of disruption, and we benefit from it.'
- Acquisition Opportunities: Ollie's acquired 63 former Big Lots locations through bankruptcy auctions, securing prime real estate in value-retail corridors, with a long-term goal of expanding store count to over 1,300 locations, nearly doubling its current footprint, showcasing its ambitious growth strategy.
- Five Below's Adaptability: Despite sourcing 60% of its products from China, Five Below achieved a 15.4% comparable sales increase and a 24.3% revenue growth to $1.73 billion in Q4 fiscal 2025, reflecting its ability to navigate tariff pressures effectively.
- Future Outlook: Five Below's management guided for fiscal 2026 sales between $5.20 billion and $5.30 billion, with adjusted EPS expected between $7.74 and $8.25, indicating strong market adaptability and growth potential despite ongoing tariff costs.
See More
Ollie's and Five Below Navigate Tariff Challenges
- Ollie's Expansion Momentum: Ollie's Bargain Outlet opened a record 86 new stores in fiscal 2025, with fourth-quarter net sales increasing 17% year-over-year to approximately $779 million, demonstrating significant growth opportunities amid tariff-induced market disruptions.
- Inventory Acquisition Advantage: By acquiring 63 former Big Lots locations, Ollie's secured prime retail real estate, further solidifying its position in the value retail market, with a long-term goal of expanding store count to over 1,300, nearly double its current footprint.
- Five Below's Adaptability: Despite sourcing about 60% of its products from China, Five Below successfully adjusted its product assortment post-tariff implementation in April 2025, achieving a 15.4% year-over-year surge in comparable sales and a 24.3% revenue increase to $1.73 billion in Q4, showcasing its strong market adaptability.
- Optimistic Future Outlook: Five Below projects fiscal 2026 sales between $5.20 billion and $5.30 billion, with adjusted EPS guidance of $7.74 to $8.25, exceeding consensus expectations despite ongoing tariff pressures, reflecting robust business resilience.
See More
Ollie's Bargain Outlet Upgraded to Buy by Jefferies
- Market Underappreciation: Jefferies upgraded Ollie's Bargain Outlet from hold to buy and raised its price target from $120 to $130, indicating about 42% potential upside, highlighting the market's undervaluation of its growth potential.
- Unique Competitive Edge: Ollie's ability to purchase cheap excess inventory at scale is a key driver behind Jefferies analyst Randal Konik's upgrade, underscoring the company's leading position in the discount retail sector.
- Significant Expansion Potential: With approximately 645 stores compared to its closest competitor's 159, Ollie's management sees growth opportunities to expand to 1,300 stores, indicating robust growth prospects.
- Changing Market Dynamics: As retail pressures increase, more clearance goods are available at discounted prices, while fewer buyers are competing, enhancing Ollie's sourcing advantages and further solidifying its market position.
See More
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- Strong Market Performance: Five Below successfully attracts budget-conscious consumers by offering trendy merchandise at reasonable prices, establishing itself as a shopping destination and standing out in the retail market.
- Upgraded Earnings Expectations: Eight analysts have raised the current year earnings estimate from $6.12 to $7.84, with next year's EPS expected to grow by 13.8%, indicating strong profit growth potential for the company.
- Expansion Potential: Five Below has significant store growth opportunities across the U.S., making it one of the best expansion engines in specialty retail, which is expected to provide investors with sustained earnings growth and long-term valuation support.
- Stable Consumer Demand: In a market where consumers are still hunting for deals, Five Below's business model effectively meets the demand for fun products, ensuring its competitive advantage in the retail industry.
See More
JPMorgan Updates Top Tech Stock Picks Amid Market Volatility
- New Tech Picks: JPMorgan added software companies JFrog and Palo Alto Networks to its top stock picks in April, indicating optimism for AI-related stocks, despite JFrog's 23% year-to-date decline, analysts believe it has significant AI growth potential.
- Market Rally: Following reports of a potential end to the Middle East conflict, all three major indexes posted gains on the last day of March, marking their best daily performance since May, even as oil prices fluctuated above $100 per barrel due to the war.
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