Five Below (NASDAQ:FIVE) Price Target Raised to $300.00 at Morgan Stanley

Key Points

• Morgan Stanley raised Five Below’s price target to $300 from $235 while maintaining an “equal weight” rating, implying approximately 25.8% upside from the previous close.
• Five Below reported stronger-than-expected quarterly results, with EPS of $1.68 versus the $1.40 consensus and revenue of $1.26 billion, up 22.9% year over year. Management also issued fiscal 2026 EPS guidance of $9.83-$10.31.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $280.80, although shares traded down 1.9% to $238.45 and valuation remains elevated at about 30 times earnings.

Five Below (NASDAQ:FIVE - Get Free Report) had its target price boosted by investment analysts at Morgan Stanley from $235.00 to $300.00 in a report released on Thursday, Benzinga reports. The firm presently has an "equal weight" rating on the specialty retailer's stock. Morgan Stanley's target price would suggest a potential upside of 25.81% from the company's previous close.

FIVE has been the topic of a number of other reports. Telsey Advisory Group upped their price target on shares of Five Below from $280.00 to $305.00 and gave the stock an "outperform" rating in a report on Thursday. Sanford C. Bernstein upgraded shares of Five Below from a "market perform" rating to an "outperform" rating and lifted their price objective for the company from $247.00 to $250.00 in a report on Tuesday, July 21st. Royal Bank Of Canada downgraded shares of Five Below to a "sector perform" rating in a research note on Thursday, July 9th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $334.00 target price on shares of Five Below in a research report on Tuesday. Finally, HSBC raised shares of Five Below to a "hold" rating in a research note on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $280.80.

Five Below Stock Down 1.9%

NASDAQ:FIVE traded down $4.63 during mid-day trading on Thursday, hitting $238.45. 601,117 shares of the stock traded hands, compared to its average volume of 1,162,766. Five Below has a 52 week low of $137.77 and a 52 week high of $263.88. The stock has a market capitalization of $13.18 billion, a price-to-earnings ratio of 30.16, a PEG ratio of 1.27 and a beta of 0.99. The firm's 50 day moving average is $215.71 and its two-hundred day moving average is $217.34.

Five Below (NASDAQ:FIVE - Get Free Report) last announced its quarterly earnings data on Wednesday, September 2nd. The specialty retailer reported $1.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.40 by $0.28. Five Below had a net margin of 8.67% and a return on equity of 21.31%. The business had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same quarter last year, the firm earned $0.81 earnings per share. The firm's quarterly revenue was up 22.9% compared to the same quarter last year. Five Below has set its Q3 2026 guidance at 1.010-1.130 EPS and its FY 2026 guidance at 9.830-10.310 EPS. As a group, research analysts predict that Five Below will post 9.19 EPS for the current year.

Hedge Funds Weigh In On Five Below

A number of large investors have recently added to or reduced their stakes in FIVE. Castleark Management LLC increased its position in shares of Five Below by 27.8% during the fourth quarter. Castleark Management LLC now owns 48,340 shares of the specialty retailer's stock worth $9,105,000 after purchasing an additional 10,520 shares in the last quarter. Mach 1 Financial Group LLC acquired a new stake in shares of Five Below in the 4th quarter worth $911,000. California Public Employees Retirement System grew its stake in Five Below by 10.0% during the 1st quarter. California Public Employees Retirement System now owns 106,692 shares of the specialty retailer's stock worth $24,377,000 after buying an additional 9,682 shares during the last quarter. Lisanti Capital Growth LLC grew its stake in Five Below by 48.4% during the 4th quarter. Lisanti Capital Growth LLC now owns 43,844 shares of the specialty retailer's stock worth $8,258,000 after buying an additional 14,305 shares during the last quarter. Finally, BlackRock Inc. acquired a new position in Five Below during the 2nd quarter valued at about $964,867,000.

Trending Headlines about Five Below

Here are the key news stories impacting Five Below this week:

• Positive Sentiment: Earnings and sales beat expectations. Adjusted Q2 earnings per share reached $1.68, up from $0.81 a year earlier and above the roughly $1.40 consensus estimate. Revenue increased 22.9% to approximately $1.26 billion, exceeding expectations of about $1.22 billion. Five Below Second Quarter Fiscal 2026 Financial Results
• Positive Sentiment: Comparable sales and store growth were robust. Comparable sales rose 14.1%, supported by traffic and demand for trendy merchandise. Five Below opened 52 net new stores during the quarter and ended the period with 2,022 locations, reinforcing its growth strategy. Five Below Strong Comparable Sales and Store Growth
• Positive Sentiment: Management raised its 2026 outlook. Full-year sales guidance increased to $5.63 billion-$5.71 billion from $5.40 billion-$5.48 billion, while adjusted EPS guidance was set at $9.83-$10.31. Third-quarter adjusted EPS guidance of $1.01-$1.13 also exceeded the prior consensus estimate of $0.86. Five Below Fiscal 2026 Outlook
• Positive Sentiment: A $600 million share-repurchase authorization could support per-share earnings and signal management confidence in the company’s cash-generation prospects. Five Below Share Repurchase Plan
• Neutral Sentiment: Analyst sentiment strengthened, with William Blair reaffirming a Buy rating and Bank of America raising its price target to $340, though the stock’s valuation remains elevated at approximately 31 times earnings.

About Five Below

Five Below, Inc NASDAQ: FIVE is an American specialty discount retailer offering a broad assortment of merchandise priced primarily at $5 or below. Since its founding in 2002 by David Schlessinger and Tom Vellios, the company has pursued a value-focused retail model targeting tweens, teens and beyond, with stores designed to deliver trend-driven products at an accessible price point. Headquartered in Philadelphia, Pennsylvania, Five Below has grown into a national chain operating in dozens of U.S.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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