Oil prices push higher amid worries over Russian supply disruptions
Investing.com - BofA Securities raised its price target on Five Below (NASDAQ:FIVE) to $110.00 from $93.00 on Thursday, while maintaining an Underperform rating on the discount retailer’s stock. The company, currently trading at $144.41 and near its 52-week high of $146.66, has shown remarkable strength with an 83% return over the past year, according to InvestingPro data.
The price target increase follows Five Below’s second-quarter earnings per share of $0.81, which exceeded both BofA’s estimate of $0.56 and the consensus estimate of $0.62, driven by strong sales performance. The company maintains solid fundamentals with revenue of $4.03 billion and a healthy current ratio of 1.71, indicating strong liquidity.
Five Below management has raised its fiscal 2025 guidance, now projecting comparable sales growth of 5-7% and earnings per share of $4.76-5.16, reflecting the second-quarter outperformance and improved outlook for the third quarter, though fourth-quarter guidance still includes significant margin deterioration.
BofA has increased its fiscal 2025 and 2026 EPS estimates by 8% to account for the second-quarter results and stronger third-quarter comparable sales projections, while the new price target is based on a multiple of 22x fiscal 2026 estimated EPS, up from the previous 20x multiple.
Despite the price target increase, BofA maintained its Underperform rating, noting it finds it "difficult to argue for multiple expansion from here with minimal EPS growth" in fiscal years 2025 and 2026. The stock currently trades at a P/E ratio of 30.54x, and InvestingPro analysis suggests the stock is trading near its Fair Value. For deeper insights into Five Below’s valuation metrics and 12 additional ProTips, consider accessing the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Five Below Inc . reported impressive financial results for the second quarter of 2025, surpassing market expectations. The company achieved an adjusted earnings per share of $0.81, which was notably higher than the projected $0.63, representing a 22.2% positive surprise. Additionally, Five Below’s revenue reached $1.03 billion, exceeding the anticipated $996 million. These results underscore the company’s strong performance in the recent quarter. Analyst firms have taken note of these developments, although specific upgrades or downgrades were not mentioned. The robust earnings and revenue figures highlight Five Below’s effective business strategies and market presence. These recent developments are essential for investors monitoring the company’s financial health.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.