Five Below, Inc. is regaining momentum with stronger sales growth, robust same-store performance, and an accelerating store expansion strategy. Analyst Joseph Feldman raised the price forecast by $16 to $144, based on a P/E multiple of 28x his 2026 EPS estimate of $5.14. For the second quarter of 2025, he projects solid results, with comps rising 9.0% and adjusted EPS of $0.62.

Feldman expects sales growth of ~20% to $994 million, driven by 30 new store openings and broad-based demand. He sees benefits from a sharper focus on core customers, trend-right merchandising, and price-point adjustments. Five Below could gain from the closure of the de minimis exemption loophole.

On profitability, Feldman forecasts operating margin contraction to 4.3% and gross margin down to 32.5% due to tariff pressures. Looking ahead to 2025, he estimates EPS of $4.72 and sales growth of 14% to $4.42 billion. Visibility remains clouded by tariff risks.

In the last month, analysts have raised price forecasts for Five Below. Citigroup, Mizuho, and Evercore ISI maintained Neutral ratings but increased their forecasts. Loop Capital upgraded the stock from Hold to Buy and raised its forecast to $165, the highest among the group.

FIVE shares are trading lower by 0.33% to $141.31 at last check Friday. Analysts have turned more constructive on Five Below, with most raising price forecasts. Loop Capital upgraded the stock from Hold to Buy and boosted its forecast to $165, the highest among the group.

Read more at Yahoo Finance: Tariffs Still A Wildcard For Five Below As Growth Story Evolves, Says Analyst