Five Below (NASDAQ:FIVE) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Five Below from “buy” to “hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $300.70.
• Five Below reported strong quarterly results, with EPS of $1.68 beating estimates and revenue rising 22.9% year over year to $1.26 billion. Management also issued fiscal 2026 EPS guidance of $9.83–$10.31 and authorized a $600 million share-repurchase program.
• Despite improving results and higher price targets from several analysts, investors face potential tariff and margin pressures, while moderating comparable-sales growth could limit further gains.

Five Below (NASDAQ:FIVE - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Monday, Wall Street Zen reports.

A number of other research firms also recently weighed in on FIVE. Wells Fargo & Company boosted their target price on Five Below from $260.00 to $295.00 and gave the stock an "overweight" rating in a research report on Thursday. Evercore set a $260.00 price target on Five Below in a report on Thursday. Raymond James Financial upgraded Five Below to an "outperform" rating in a research report on Tuesday, July 21st. Royal Bank Of Canada downgraded shares of Five Below to a "sector perform" rating in a research report on Thursday, July 9th. Finally, Guggenheim raised their target price on shares of Five Below from $250.00 to $290.00 and gave the company a "buy" rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and thirteen have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $300.70.

Five Below Stock Performance

FIVE opened at $252.20 on Monday. Five Below has a 1-year low of $137.77 and a 1-year high of $263.88. The stock has a market capitalization of $13.88 billion, a PE ratio of 22.64, a PEG ratio of 1.00 and a beta of 0.99. The firm has a 50-day moving average price of $218.05 and a two-hundred day moving average price of $217.90.

Five Below (NASDAQ:FIVE - Get Free Report) last announced its earnings results on Wednesday, September 2nd. The specialty retailer reported $1.68 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.40 by $0.28. Five Below had a net margin of 11.65% and a return on equity of 22.13%. The company had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same period in the prior year, the business earned $0.81 earnings per share. Five Below's quarterly revenue was up 22.9% on a year-over-year basis. 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. On average, research analysts predict that Five Below will post 10.27 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Five Below in the 2nd quarter valued at about $31,000. Basecamp Wealth Advisors LLC raised its position in Five Below by 83.8% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 182 shares of the specialty retailer's stock valued at $42,000 after buying an additional 83 shares during the last quarter. Bayban acquired a new stake in Five Below in the 4th quarter valued at approximately $34,000. Elevation Wealth Partners LLC lifted its stake in Five Below by 966.7% in the 2nd quarter. Elevation Wealth Partners LLC now owns 192 shares of the specialty retailer's stock valued at $35,000 after acquiring an additional 174 shares in the last quarter. Finally, Advisory Services Network LLC bought a new stake in Five Below in the 3rd quarter valued at approximately $32,000.

Trending Headlines about Five Below

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

• Positive Sentiment: Five Below reported second-quarter earnings of $1.68 per share, well above the $1.34–$1.40 analyst range, while revenue rose 22.9% year over year to approximately $1.26 billion. Results were supported by strong traffic, repeat visits, comparable-sales growth and demand for new, trend-oriented merchandise. Five Below Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Management raised fiscal 2026 guidance to $5.63 billion–$5.71 billion in revenue and $9.83–$10.31 in EPS. Third-quarter EPS guidance of $1.01–$1.13 also exceeds the prior consensus estimate, signaling continued operating momentum. Five Below Q2 Earnings Call Centers on Traffic and Raised Outlook
• Positive Sentiment: The company authorized a $600 million share-repurchase program, which could support per-share earnings and signal confidence in future cash generation. Five Below Unveils $600 Million Share Repurchase Plan
• Positive Sentiment: Analysts raised targets following the earnings beat: Goldman Sachs moved to $306 with a Buy rating, JPMorgan to $368 with an Overweight rating, Truist to $297 with a Buy rating and Morgan Stanley to $300 while maintaining Equal Weight. These revisions reinforce improving expectations for growth and margins.
• Neutral Sentiment: Jim Cramer highlighted that comparable-sales growth is decelerating, although it remains strong. Consensus targets imply further upside, but target-price metrics alone are not reliable predictors of returns.
• Negative Sentiment: Some retail earnings point to a wider split among U.S. consumers. Five Below still faces potential tariff and margin pressures, and slowing comparable-sales growth could temper the rally if traffic or discretionary spending weakens. Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy

Five Below Company Profile

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.

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