FIVE Stock Analysis — Five Below
Sector: Retail
AI Verdict
Five Below trades at 27.5x next year's earnings while analysts expect 25.1% EPS growth—you're paying a fair price for high growth if the store experience moat keeps traffic and margins high.
Competitive Moat
Five Below operates a discount retail model targeting teens and pre-teens with a constantly refreshed assortment of low-cost, trend-driven merchandise. Its defensibility comes from a unique store experience and a supply chain optimized for rapid product turnover, making it hard for traditional dollar stores or big-box retailers to replicate the same vibe and margins.
Summary
Five Below's 25.1% forward EPS growth expectation is drawing attention as the company continues to outpace typical retail peers.
Where It Stands
Shares trade at 27.5x forward earnings versus the retail sector median of 20x, with trailing revenue growth of 22.9% and a PEG of 1.37 signaling the price is roughly in line with growth expectations.
Key Metrics
- Trailing P/E: 34.4x
- Forward P/E: 27.5x
- PEG Ratio: 1.37
- Earnings Growth: +0.3%
- Revenue Growth: +0.2%
- 52-Week High: $251.63
- 52-Week Low: $82.00
Analyst Consensus
22 Buy · 11 Hold · 0 Sell (33 analysts)
Bull Case
With analysts projecting 25.1% EPS growth and trailing revenue up 22.9%, the current 27.5x forward P/E gives you high growth at a fair multiple for a specialty retailer.
Bear Case
If the P/E compresses from 27.5x to the sector median of 20x, the stock would need to drop about 27% to match typical retail valuations.
Catalyst to Watch
Watch for quarterly same-store sales trends—if comps slip below double digits, the growth narrative could unravel fast.