Five Below Stock: A Deep Dive Into Analyst Perspectives (10 Ratings)

During the last three months, 10 analysts shared their evaluations of Five Below FIVE, revealing diverse outlooks from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $221.9, a high estimate of $245.00, and a low estimate of $205.00. This current average has increased by 6.05% from the previous average price target of $209.25.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Five Below among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Five Below. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Five Below compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Five Below's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into Five Below's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Five Below analyst ratings.

About Five Below

Five Below is a value-oriented retailer that operated 1,340 stores in the United States as of the end of fiscal 2022. Catering to teen and preteen consumers, its stores feature a wide variety of merchandise, the vast majority of which is priced below $6. The assortment focuses on discretionary items in several categories, particularly leisure (such as sporting goods, toys, and electronics; 48% of fiscal 2022 sales), fashion and home (for example, beauty products and accessories, home goods, and storage solutions; 29% of fiscal 2022 sales), and party and snack (including seasonal goods, candy, and beverages; 23% of fiscal 2022 sales). The chain had stores in 42 states as of the end of fiscal 2022.

Five Below: Delving into Financials

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Five Below's revenue growth over a period of 3 months has been noteworthy. As of 31 October, 2023, the company achieved a revenue growth rate of approximately 14.17%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Five Below's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 1.98%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Five Below's ROE stands out, surpassing industry averages. With an impressive ROE of 1.04%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Five Below's ROA stands out, surpassing industry averages. With an impressive ROA of 0.4%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Five Below's debt-to-equity ratio is below the industry average. With a ratio of 1.22, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.