The Analyst Verdict: Five Below In The Eyes Of 6 Experts

Across the recent three months, 6 analysts have shared their insights on Five Below FIVE, expressing a variety of opinions spanning from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $227.17, a high estimate of $245.00, and a low estimate of $200.00. This current average has increased by 1.32% from the previous average price target of $224.20.

Breaking Down Analyst Ratings: A Detailed Examination

A clear picture of Five Below's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Five Below. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Five Below compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Five Below's stock. This comparison reveals trends in analysts' expectations over time.

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.

Unveiling the Story Behind 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.

Financial Milestones: Five Below's Journey

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

Revenue Growth: Over the 3 months period, Five Below showcased positive performance, achieving a revenue growth rate of 14.17% as of 31 October, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out 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): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 1.04%, the company showcases effective utilization of equity capital.

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 at 1.22, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

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 enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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