Five Below FIVE is a specialty value chain retailer that offers a wide range of premium-quality, trendy merchandise typically priced at $5 or less. The company primarily targets teenage and pre-teen shoppers with its products, which include certain brands and licensed merchandise.
The stock sports the highly coveted Zacks Rank #1 (Strong Buy), with bullish EPS revisions present across the board.
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Five Below Raises Guidance
Five Below shares have recently taken a hit following its latest earnings release after an initial hot start to 2026. Though notable, the negative action is likely partly a reflection of profit-taking after a strong run over the past year, with overall results strong and the company seeing positive EPS revisions in the days following.
The retailer posted a double-beat relative to our consensus expectations in the latest quarterly release, with revenues increasing nearly 32% alongside a 160% jump in adjusted EPS. The YoY sales growth rate was the highest we’ve seen from the company in years, with it also raising its FY26 EPS and sales guidance following the release.
Comparable store sales also increased by an impressive 22.7% YoY, telling us that its existing locations are seeing strong growth, with FIVE also opening 49 new stores throughout the quarter.
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The growth picture remains solid, with earnings forecasted to grow 30% in its current fiscal year, with estimates for the upcoming year suggesting a further 11% improvement. Sales are expected to grow 14.3% in its current fiscal year and 9.6% in its next.
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Bottom Line
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The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Five Below FIVE would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
