From Nasdaq: 2025-06-14 05:22:00

Shares of Five Below (NASDAQ: FIVE) are currently trading 48% below their peak, set in August 2021, but have surged 102% in the past two months. The market is showing bullish momentum for the retail stock, with potential for growth in its physical presence and strong financial performance.

Despite the competitive retail landscape, Five Below reported a 19.5% year-over-year revenue growth in Q1 2025, driven by a 7.1% increase in same-store sales. Management expects same-store sales to grow 3-5% for the full fiscal year, indicating positive performance and potential for expansion.

While Five Below’s stock has seen significant growth recently, its current price-to-earnings ratio of 25.9 may not offer a substantial margin of safety for investors. Analysts forecast a 6% compound annual growth rate in earnings per share, which could impact stock price performance in the future.

Investors considering Five Below should weigh the company’s growth outlook, recent financial momentum, and valuation before making an investment decision. The Motley Fool’s Stock Advisor team has identified 10 other stocks with potential for significant returns, providing alternative investment options for interested individuals.



Read more at Nasdaq: 3 Must-Know Facts About Five Below You’ll Want to Check Out Before Buying the Stock