What Analysts Are Saying about Five Below before Q2 2018 Results

Why are analysts bullish?

As of August 31, Five Below (FIVE) was rated a “buy” by 53% of the 17 analysts covering the stock. That comes ahead of its upcoming fiscal second quarter of 2018 results. Another 47% rated the stock a “hold.”

What Analysts Are Saying about Five Below before Q2 2018 Results

There have been two changes in price targets for Five Below in the last 30 days. On August 31, UBS upped its price target to $117 from $97. On August 1, JPMorgan raised its price target to $116 from $106. The 12-month average target price for FIVE stock is $105.80, which reflects a 9.2% downside as of August 31.

Analysts are upbeat about Five Below’s fiscal second-quarter results, which are expected to grow 18.1%, while adjusted EPS is expected to rise 26.7%. Sales are likely to benefit from new store openings. The company is also diverting monetary resources toward enhancing brand awareness. Growth in its top line and a reduced tax burden will aid its bottom-line growth. It’s also investing in training personnel to improve the customer’s shopping experience.

Ratings for peers

Of the 29 analysts covering Dollar General (DG), 59% have given it a “buy” rating, and 38% have rated it a “hold.” Analysts’ target price is $113.42, reflecting a 5.3% upside as of August 31.

About 67% of the 27 analysts covering Dollar Tree (DLTR) have given the stock a “buy” rating, and the remaining 33% have rated it a “hold.” The mean target price for Dollar Tree is $98.08, which indicates a 21.8% upside to its price on August 31.

Of the 12 analysts covering Big Lots (BIG), 58% have rated it a “buy,” and the rest have rated it a “hold.” For Big Lots, the mean target price is $46.91, which indicates a ~9% upside.

The one analyst covering Fred’s (FRED) has rated the stock a “hold.” The mean target price for Fred’s is $2, which indicates a ~17% upside.