Latest news with #FiveBelow
Yahoo
3 days ago
- Business
- Yahoo
Five Below (FIVE) Reports Next Week: Wall Street Expects Earnings Growth
Five Below (FIVE) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended April 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on June 4. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This discount retailer is expected to post quarterly earnings of $0.83 per share in its upcoming report, which represents a year-over-year change of +38.3%. Revenues are expected to be $961.07 million, up 18.4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 12.9% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Five Below, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Five Below will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Five Below would post earnings of $3.38 per share when it actually produced earnings of $3.48, delivering a surprise of +2.96%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Five Below doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Five Below, Inc. (FIVE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Why Five Below Stock Popped by 8% on Tuesday
An analyst from a prominent bank made a significant change to his price target on the shares. He didn't change his recommendation, though. 10 stocks we like better than Five Below › Any time an analyst cranks their price target on a stock more than 50% higher, you can bet the market will stand up and take notice. That's what happened on Tuesday, with retail stock Five Below (NASDAQ: FIVE). On such a move by a pundit, investors lapped up the stock to send it to a more than 8% price gain at market close. That made it look good even next to the sprightly S&P 500 index (SNPINDEX: ^GSPC), which gained a bit over 2%. Before market open, Citigroup's Paul Lejuez raised his Five Below price target. Actually, it might be more accurate to use a verb like "catapulted." The pundit's new fair-value assessment of the retailer places it at $121 per share, well up from his former level of $80. Despite the fairly drastic move, Lejuez maintained his neutral recommendation on the stock. According to reports, Lejuez cited the company's recently released first-quarter earnings pre-announcement as a chief reason for his move. This indicated that Five Below's comparable sales rose nearly 7% year over year in its first quarter, which would be far ahead of the company's guidance for the period of flat to only 2% growth. However, although Lejuez feels that management will raise its "comps' guidance for the full year due to the expected first-quarter result, he feels its earnings outlook will be unchanged due to the current tariffs. Five Below's recently raised revenue guidance and that, combined with the anticipated comparable-sales result for the first quarter, would make me more bullish than the Citigroup analyst. I also think the tariff war will sputter out, and as a result, energize the U.S. retail consumer. Therefore, this stock is definitely looking like a buy to me these days. Before you buy stock in Five Below, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Five Below wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Citigroup is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Five Below. The Motley Fool has a disclosure policy. Why Five Below Stock Popped by 8% on Tuesday was originally published by The Motley Fool
Yahoo
24-05-2025
- Business
- Yahoo
Why Five Below Stock Got Socked Today
The company was hit with a recommendation downgrade. This downgrade happened despite management's recent raising of first-quarter guidance. 10 stocks we like better than Five Below › Teen- and "tween"-focused discount retailer Five Below (NASDAQ: FIVE) saw its stock head south on Friday after a researcher downgraded its recommendation on the company. While this didn't exactly tank the stock, it did leave it with a 2.5% decline on the last trading session of the week. By contrast, the benchmark S&P 500 index suffered only a mild fall with a 0.4% slide on the day. That researcher, CFRA, changed its recommendation to hold from buy, tagging Five Below with a price target of $108. Neither the details of the change nor the reasoning behind it were immediately apparent. It came less than two weeks before Five Below is slated to release its first quarter of fiscal 2026 earnings. As a group, analysts tracking the company are still expecting it to show some solid growth for the period. They are collectively modeling a 19% year-over-year improvement in sales to $966 million and believe per-share earnings will pop by 38% to $0.83. At least some of this optimism stems from the company's guidance raise in early May. It significantly lifted its own estimate for Q1 sales to roughly $967 million (essentially in line with that analyst consensus) from the previous forecast of $905 million to $925 million. That's on a foundation of anticipated same-store sales growth of 6.7%, well up from the former projection of flat to 2%. Five Below didn't outline its reasons for the rather strong increases in guidance items, so when that earnings report is published, it should be at least somewhat enlightening. Regardless, the tariff war isn't quite as nasty as some feared it would be, and consequently, the impact on our economy shouldn't be too negative. It might just be time to snap up shares of a retailer like Five Below. Before you buy stock in Five Below, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Five Below wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $640,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $814,127!* Now, it's worth noting Stock Advisor's total average return is 963% — a market-crushing outperformance compared to 168% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Five Below. The Motley Fool has a disclosure policy. Why Five Below Stock Got Socked Today was originally published by The Motley Fool
Yahoo
22-05-2025
- Business
- Yahoo
Five Below Set to Open 150 New Stores
As of late, some of our go-to chains have shared exciting plans for opening more stores. Like ALDI, who shattered its own record of new stores opening in a single year. Or Trader Joe's, who is planning to open 20 stores this year. Now, fans of Five Below's signature $5 or less prices will be excited to learn that the chain can be added to that list. As a bonus, this expansion is with the hopes of opening 150 new stores by February of next year. Aka, there's ample opportunities for Five Below fans to find a new store opening near them. According to a March report by the chain, Five Below's overall net sales have increased. 'We were very encouraged to see early positive results from our teams' efforts and are excited to build on this in 2025,' Five Below wrote in its report. The chain has wasted no time in putting this plan into action. Because so far this year, Five Below has already opened up over a third of its new stores. Shoppers can find new Five Below stores already open in the following locations: Alabama: Huntsville: 1001 N Memorial Pkway Suite A2 California: La Mirada: 15743 Imperial Hwy Monrovia: 558 W Huntington Dr Paradise: 6606 Clark Rd Pittsburg: 4505 Century blvd Pomona: 715 Rio Rancho Poway: 13644 Poway Rd, Suite 102 Redding: 4611 Churn Creek Rd Victorville: 17180-G Bear Valley Rd Florida: Babcock Ranch: 42080 Cypress Pkwy Daytona Beach: 2500 W International Speedway Blvd Suite #500 Ft. Lauderdale: 959 W State Rd 84 Merritt Island: 1450 N Courtenay Pkwy Palm Springs: 3469 S CONGRESS AVE Pensacola: 6601 N Davis Hwy Suite 45 West Palm Beach: 904 S Military Trail Bldg 1 Illinois: East Peoria: 451 N Main St Granite City: 3459 Nameoki Rd Remeoville: 351 S Weber Rd Waukegan: 1305 N Lewis Ave Indiana: Indianapolis: 4200 S East St Suite #30 Logansport: 3908 East Market St Noblesville: 17160 Mercantile Blvd Kansas: Pittsburg: 206 W 29th St Kentucky: Monticello: 255 Cumberland Crossing Maryland: Aberdeen: 975 Beards Hill Rd Suite #975 Berlin: 113330 Samuel Bowen Blvd Oxon Hill: 6161 Livingston Rd Suite B Michigan: Detroit: 1910 E 8 Mile Rd Minnesota: Elk River: 19226 Freeport St Red Wing: 160 Tyler Rd N Suite 12 Missouri: Joplin: 430 S. Rangeline Rd New Jersey: Cherry Hill: 2232 Marlton Pike West New York: East Meadow: 1958 Hempstead Tpke Yorktown Heights: 335 Down Dr Suite A Ohio: Canton: 3020 Atlantic Blvd NE Panama: 1091 West Pleasant Valley Rd Oklahoma: Oklahoma City: 4617 NW 23rd St Pennsylvania: Ebsenburg: 881 Hills Plaza Suite 590 McKeesport: 4201 Walnut St Suite 3 Meadville: 11389 Vernon Place Rd Philadelphia: 2300 Passyunk Ave Philadelphia: 2495 Aramingo Ave South Carolina: Bluffton: 1460 Fording Island Rd Suite 102 Tennessee: Ashland City: 246 Hutton Place Fayetteville: 1202 Huntsville Hwy Texas: Floresville: 917 10th St Houston: 4683 FM 1960 Rd W San Antonio: 14036 Nacogdoches Rd Willis: 12342 Interstate 45 N Virginia: Gainesville: 8135 Stonewall Shops SquareWhile plenty of more Five Below's are set to open this year, here are the nine confirmed locations shoppers can expect to open next: California: South Lake Tahoe: 1052 Emerald Bay Rd (May 23rd) Colorado: Greeley: 4759 W 29th St Unit A (May 30th) Connecticut: Southington: 724 Queen St (May 30th) Kansas: Wichita: 6930 W Kellogg Dr (May 23rd) New Mexico: Albuquerque: 8102 Wyoming Blvd NE (May 20th) Tennessee: McMinnville: 231 Northgate Dr Suite 114 (May 23rd) Columbia: 800 S James M Campbell Blvd STE 140 (May 23rd) Utah: South Jordan: 10541 S Redwood Rd (May 30th) West Virginia: Morgantown: 720 Venture Dr Suite 11 (May 23rd)
Yahoo
19-05-2025
- Business
- Yahoo
FIVE Stock Trades Above 50 & 200-Day SMAs: Time to Buy, Hold or Sell?
Five Below, Inc. FIVE has demonstrated strong upward momentum. FIVE ended Friday's trading session at $106.52, above its 50 and 200-day simple moving averages (SMAs) of $76.33 and $87.10, respectively, highlighting a continued uptrend. This technical strength, combined with consistent momentum, reflects positive market sentiment and investor confidence in Five Below's financial stability and growth potential. FIVE Trades Above 50 & 200-Day Moving Averages Image Source: Zacks Investment Research Shares of this specialty value-chain retailer are currently trading 24.8% below its 52-week high of $141.7 reached on June 3, 2024, making investors contemplate their next move. In the past month, FIVE stock has gained 56.5%, significantly outperforming the Zacks Retail-Miscellaneous industry's 16.1% growth. The company's enhanced operational efficiency and growth initiatives have also helped it to outperform the broader Retail-Wholesale sector and the S&P 500 index's growth of 14.5% and 15.3%, respectively, during the same period. FIVE Stock Past-Month Performance Image Source: Zacks Investment Research Five Below's strong financial momentum, aggressive expansion and operational improvements position it well for sustained growth. The company's scalable business model, combined with a disciplined approach to expansion and a sharp focus on customer experience, provides a solid foundation as it enters fiscal 2025 with optimism and strategic Below delivered a strong financial performance in the fourth quarter of fiscal 2024 despite a tough retail climate. Total sales reached $1.39 billion, up 4% from the same period in 2023, driven by the addition of 22 net stores and the success of new and non-comparable locations. The company's focus on a customer-centric strategy targeting kids and families, supported by enhanced marketing and trend-right product offerings, helped boost brand engagement and laid the groundwork for continued momentum into fiscal aggressive store expansion strategy further underscores its growth potential. In fiscal 2024, the company opened a record 228 stores across 39 states, including its first in Wyoming, increasing the total store count by 14.7% to 1,771. For fiscal 2025, plans include 150 new store openings. The expansion is strategically focused on densifying current markets and entering new ones like the Pacific Northwest. Five Below has raised its outlook for the first quarter of fiscal 2025, which ended on May 3, 2025, reflecting stronger-than-expected sales and earnings performance. The company now projects net sales of approximately $967 million, well above its previous guided range of $905-$925 million and a sharp increase from $811.9 million in first-quarter fiscal openings for the quarter are expected to total 55, slightly higher than the earlier estimate of 50. Comparable sales are now forecasted to grow 6.7%, a notable improvement from the initial expectation of flat to 2% growth. Earnings per share are forecasted between 69 cents and 71 cents, up from the previously stated 44-55 cents. Adjusted earnings per share for the fiscal first quarter are expected to be 82-84 cents compared with the prior mentioned 50-61 cents. This compares with the 60 cents reported in the prior-year period. The company is trading at a notable low price-to-sales (P/S) multiple, below the averages of the industry and the sector. With a forward 12-month P/S of 1.31, FIVE is priced lower than the industry and the sector's average of 1.64 and 1.59, respectively. This undervaluation highlights its potential for investors seeking attractive entry points. The company's Value Score of A further emphasizes its investment appeal. FIVE Looks Attractive From a Valuation Standpoint Image Source: Zacks Investment Research The positive sentiment surrounding Five Below is reflected in the upward revisions in the Zacks Consensus Estimate for earnings. In the past 30 days, the consensus estimate has moved up 14 cents to $4.58 per share for the current fiscal year and by 13 cents to $4.84 for the next fiscal year, indicating a year-over-year decline of 9.1% and growth of 5.6%, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The Zacks Consensus Estimate for the current and next fiscal year's sales is pegged at $4.34 billion and $4.75 billion, respectively, implying year-over-year growth of 12% and 9.5%. Image Source: Zacks Investment Research Five Below continues to face elevated cost pressures, particularly in managing selling, general, and administrative (SG&A) expenses. In the fiscal fourth quarter, SG&A expenses rose 8.5% to $267 million, with the SG&A rate increasing roughly 80 basis points to 19.2% of net sales. This increase was mainly caused by fixed cost deleverage due to negative comparable sales, higher store wages and increased investment in store hours. These trends highlight ongoing challenges in controlling operational expenses amid a competitive and demand-sensitive retail environment. In addition to rising SG&A costs, Five Below is contending with margin pressures. The company's adjusted gross margin declined 70 basis points year over year to 40.5% in the fiscal fourth quarter, mainly due to fixed cost deleverage and the timing of product costs. Five Below offers strong long-term potential with robust sales growth, aggressive store expansion and an improved earnings outlook. The company's focus on value-driven products for families helps maintain strong customer loyalty and the attractive valuation makes it appealing for investors. However, rising operating costs and margin pressures could affect short-term profits. Despite these challenges, the overall outlook remains positive for those holding the company currently has a Zacks Rank #3 (Hold). Some better-ranked stocks are Nordstrom Inc. JWN, Stitch Fix SFIX and Canada Goose is a leading fashion specialty retailer. It has a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Zacks Consensus Estimate for Nordstrom's fiscal 2025 earnings and revenues indicates growth of 1.8% and 2.2%, respectively, from fiscal 2024 reported levels. JWN delivered a negative trailing four-quarter average earnings surprise of 26.1%.Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It currently has a Zacks Rank of Zacks Consensus Estimate for SFIX's fiscal 2025 earnings implies growth of 64.7% from the year-ago actual. SFIX delivered a trailing four-quarter average earnings surprise of 48.9%.Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank of 2 at Zacks Consensus Estimate for Canada Goose's current fiscal-year earnings and revenues implies a decline of 1.4% and 4.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 71.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nordstrom, Inc. (JWN) : Free Stock Analysis Report Five Below, Inc. (FIVE) : Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
