Barclays now sees two Fed cuts this year, says jumbo Fed cuts ’very unlikely’
On Tuesday, Mizuho (NYSE:MFG) analysts increased the price target for Five Below stock (NASDAQ: NASDAQ:FIVE) to $100 from $88, maintaining a Neutral rating. The decision comes as the company shows strong sales momentum ahead of its upcoming earnings report. According to InvestingPro data, 17 analysts have recently revised their earnings expectations upward, with the stock currently trading at a P/E ratio of 16.57.
Five Below’s comparable sales in the first quarter tracked at nearly 7%, surpassing the initial guidance range of 0-2%. The company’s performance is bolstered by a refreshed product assortment and new intellectual property from the "Lilo & Stitch" movie, contributing to continued momentum in the second quarter.
Despite the company’s shares doubling from their post-Liberation Day lows, they remain nearly 50% below the peaks reached in early 2024. Mizuho analysts note that Five Below is on a better trajectory from a demand perspective, but express caution regarding the stock’s current valuation and potential tariff impacts on earnings.
The analysts highlight that the company’s comparable sales comparison is easier this year, given a 5.7% decline in the previous year. However, they remain Neutral-rated on the stock due to uncertainties about tariff headwinds, even at a reduced 30% level.
Investors are closely watching Five Below’s upcoming earnings report, scheduled for June 4, 2025, for further insights into the company’s performance and future outlook. For deeper analysis and additional insights, including 8 more exclusive ProTips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, Five Below has seen several updates concerning its stock price targets and ratings from various financial firms. Citi raised its price target on Five Below to $121 from $80, following the company’s pre-announcement of better-than-expected first-quarter results, with comparable store sales growth of 6.7%. UBS maintained a Buy rating with a $110 price target, noting the company’s strong first-quarter performance and potential for future growth. Truist Securities increased its price target to $112 from $81, maintaining a Hold rating due to potential risks in the latter half of the year despite positive sales trends.
Barclays (LON:BARC) reiterated its Equalweight rating with a $93 price target, acknowledging improved performance but expressing caution due to uncertainties around tariffs. Loop Capital raised its price target to $90 from $85, maintaining a Hold rating, citing external economic factors such as the global trade war as reasons for caution. The firm noted the positive impact of new CEO Winnie Park’s strategic initiatives on the company’s performance. These recent developments reflect a general optimism about Five Below’s growth prospects, tempered by concerns over external economic challenges.
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