Five Below (NASDAQ: FIVE) Sees 79% Stock Surge in 2025 Amid Sales Recovery
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 22h ago
0mins
Source: NASDAQ.COM
- Sales Recovery: Five Below anticipates a significant 12.5% increase in same-store sales for 2025, indicating a successful recovery of market confidence after a 51% stock price drop in 2024, with expected earnings per share rising to $6.10 from $4.60 in 2024.
- Management Change: The appointment of new CEO Winnie Park has led to an increased valuation for Five Below, suggesting a restoration of investor confidence, as reflected in the stock price surge that acknowledges the effectiveness of the new strategy.
- Pricing Strategy Shift: By eliminating the Five Beyond section and selling higher-priced items throughout the store, Five Below has achieved significant same-store sales growth, demonstrating its pricing power and adaptability in an inflationary environment.
- Expansion Plans: Five Below aims to grow its store count from over 1,900 to 3,500 locations, with new stores expected to break even within a year, enhancing profit margins and market share through the combination of growth potential and the new pricing strategy.
Analyst Views on FIVE
Wall Street analysts forecast FIVE stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for FIVE is 193.47 USD with a low forecast of 132.00 USD and a high forecast of 242.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 198.040
Low
132.00
Averages
193.47
High
242.00
Current: 198.040
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.
