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Nervous markets await NvidiaThis summary was created by AI, based on 7 opinions in the last 12 months.
Five Below Inc (FIVE-Q) has faced significant challenges, with its stock down 51% and experiencing an abrupt slowdown after a period of rapid growth. The company has initiated changes in leadership and revised its store growth projections from 15% to 9%, reflecting a more cautious approach. Despite these difficulties, management has accepted responsibility for the company's setbacks and has recognized areas in need of improvement. Analysts note that sentiment towards discretionary retail has been negative, but some believe that the stock, trading at a forward earnings valuation close to historical levels, may present a buying opportunity if the company can execute its recovery plan effectively. Furthermore, there are concerns regarding its heavy reliance on Chinese goods, which could impact performance if tariffs are imposed.
Sentiment toward the company is fairly poor right now and toward the discretionary sector more widely. FIVE remains a strong company fundamentally with a long runway for growth via store openings but we might give them one more quarter for a bit more clarity/visibility before adding to the name.
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The momentum is highly negative, however, we like FIVE at an 18x to 20x forward earnings valuation range. At current levels of 22.5x forward earnings, FIVE is very close to this range and below historical levels. We are hesitant to add more here, but the stock could be bottoming and there is future value if FIVE can execute its plan.
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Its recent results announce revenue guidance growth of 1% and earnings per share by 8%. However the stock dropped 30% along with negative sentiment towards the retail sector. It has plans to grow its store base by 15% this year which amounts to 225 stores. Its products are fairly inexpensive. Buy 17 Hold 6 Sell 0
(Analysts’ price target is $205.90)Five Below Inc is a American stock, trading under the symbol FIVE-Q on the NASDAQ (FIVE). It is usually referred to as NASDAQ:FIVE or FIVE-Q
In the last year, 9 stock analysts published opinions about FIVE-Q. 3 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Five Below Inc.
Five Below Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Five Below Inc.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
9 stock analysts on Stockchase covered Five Below Inc In the last year. It is a trending stock that is worth watching.
On 2025-05-07, Five Below Inc (FIVE-Q) stock closed at a price of $82.2.
It was a fast growing company that slowed down quickly. It has changed its CEO and is focusing on making improvements. The store count is growing less but at 9% this year. It didn't blame the economy for its problems and gave a good self-reflection with its workers.