Wall Street Zen Upgrades Five Below (NASDAQ:FIVE) to "Buy"

Key Points

• Wall Street Zen upgraded Five Below to “buy” from “hold,” contributing to a broader analyst consensus of “Moderate Buy” with an average price target of $300.70.
• Five Below beat quarterly expectations, reporting $1.68 EPS versus $1.40 expected and revenue of $1.26 billion, up 22.9% year over year; the company also raised its fiscal 2026 outlook.
• The stock opened at $234.14, down 1.1%, while several insiders sold shares worth approximately $4.6 million over the past three months, potentially raising profit-taking concerns.

Five Below (NASDAQ:FIVE - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Several other equities research analysts have also issued reports on FIVE. Craig Hallum reiterated a "buy" rating and set a $325.00 target price on shares of Five Below in a research report on Thursday, September 3rd. Wells Fargo & Company raised their price objective on shares of Five Below from $260.00 to $295.00 and gave the company an "overweight" rating in a research report on Thursday, September 3rd. UBS Group raised their price objective on shares of Five Below from $285.00 to $325.00 and gave the company a "buy" rating in a research report on Thursday, September 3rd. Weiss Ratings raised shares of Five Below from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday. Finally, Citigroup upped their target price on shares of Five Below from $235.00 to $265.00 and gave the stock a "neutral" rating in a research report on Thursday, September 3rd. One 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's stock. Based on data from MarketBeat, Five Below presently has an average rating of "Moderate Buy" and a consensus price target of $300.70.

Five Below Stock Down 1.1%

NASDAQ:FIVE opened at $234.14 on Friday. The business's 50-day moving average price is $230.47 and its two-hundred day moving average price is $219.58. Five Below has a twelve month low of $137.77 and a twelve month high of $263.88. The stock has a market cap of $12.89 billion, a P/E ratio of 21.02, a PEG ratio of 0.91 and a beta of 0.99.

Five Below (NASDAQ:FIVE - Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The specialty retailer reported $1.68 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.40 by $0.28. Five Below had a return on equity of 22.13% and a net margin of 11.65%.The firm 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 company posted $0.81 EPS. The company's revenue for the quarter 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, equities research analysts expect that Five Below will post 10.51 EPS for the current fiscal year.

Insider Buying and Selling at Five Below

In other news, COO Kenneth Bull sold 10,510 shares of the business's stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $248.06, for a total value of $2,607,110.60. Following the completion of the sale, the chief operating officer directly owned 75,064 shares in the company, valued at approximately $18,620,375.84. The trade was a 12.28% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Maureen Gellerman sold 1,610 shares of the company's stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $248.94, for a total transaction of $400,793.40. Following the completion of the sale, the insider directly owned 8,804 shares of the company's stock, valued at $2,191,667.76. This trade represents a 15.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 18,438 shares of company stock valued at $4,580,933. 0.96% of the stock is owned by insiders.

Institutional Trading of Five Below

Institutional investors have recently added to or reduced their stakes in the business. Global Retirement Partners LLC increased its holdings in shares of Five Below by 1.5% in the fourth quarter. Global Retirement Partners LLC now owns 3,264 shares of the specialty retailer's stock worth $615,000 after buying an additional 49 shares during the period. Bessemer Group Inc. boosted its holdings in Five Below by 26.6% during the 1st quarter. Bessemer Group Inc. now owns 257 shares of the specialty retailer's stock valued at $59,000 after acquiring an additional 54 shares during the period. V Square Quantitative Management LLC grew its position in Five Below by 29.6% during the 1st quarter. V Square Quantitative Management LLC now owns 241 shares of the specialty retailer's stock worth $55,000 after acquiring an additional 55 shares during the last quarter. Optimize Financial Inc grew its position in Five Below by 1.4% during the 4th quarter. Optimize Financial Inc now owns 3,948 shares of the specialty retailer's stock worth $744,000 after acquiring an additional 56 shares during the last quarter. Finally, Koshinski Asset Management Inc. increased its stake in Five Below by 5.9% in the 1st quarter. Koshinski Asset Management Inc. now owns 1,140 shares of the specialty retailer's stock worth $260,000 after purchasing an additional 64 shares during the period.

Five Below News Roundup

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

• Positive Sentiment: Five Below raised its fiscal 2026 outlook after a second-quarter earnings beat. Stronger customer traffic, improved margins and “newness” in its merchandise assortment helped lift the company’s earnings trajectory. FIVE raises 2026 outlook article
• Positive Sentiment: The latest quarterly results showed revenue up 22.9% year over year to $1.26 billion, while EPS of $1.68 exceeded the $1.40 consensus estimate. The results reinforce the view that traffic and profitability improvements are driving growth.
• Positive Sentiment: Zacks Research raised several future earnings forecasts, including FY2027 EPS to $10.12 from $8.94, FY2028 EPS to $11.49 from $9.79, and FY2029 EPS to $12.57 from $10.67. Higher long-term estimates support the bull case for FIVE. Five Below earnings forecast article
• Neutral Sentiment: Analysts see meaningful growth potential, but the stock trades at a premium valuation after its recent rally. Investors therefore require continued execution on traffic, margins and store expansion. FIVE valuation analysis
• Negative Sentiment: Insider selling could weigh on sentiment. Chief Accounting Officer Eric Specter sold 5,500 shares for approximately $1.37 million, while Chief Human Resources Officer Maureen Gellerman separately sold 1,610 shares for about $401,000. These transactions may encourage profit-taking concerns.
• Negative Sentiment: Some analysts caution that Five Below’s growth may not be sustainable over the long term, leaving the shares vulnerable if traffic or margin momentum slows.

About Five Below

Five Below, Inc is a specialty value retailer that sells merchandise primarily designed for children, teens and preteens. Its product assortment generally includes toys, games, fashion accessories, room décor, sports equipment, technology accessories, party supplies, seasonal items and candy. The company operates under a “five and beyond” pricing concept, offering most products at affordable price points while also selling selected higher-priced items.

Founded in 2002 by David Schlessinger and Tom Vellios, Five Below has expanded from its original store base into a nationwide retail chain.

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