56% of analysts rate Five Below a “buy”
Of the 18 analysts covering Five Below (FIVE) stock, 56.0% recommended a “buy,” and the remaining 44% of these analysts recommended a “hold.” In the past 15 days, there has been just one target price revision for Five Below stock. On November 26, J.P. Morgan slashed its target price for Five Below to $129.00 from $153.00. The 12-month average target price for FIVE stock is $129.94, which reflects a 24.3% upside to its stock price on November 26.
For the third quarter, Wall Street analysts have estimated Five Below’s net sales to grow 18.3% to $304.2 million. The adjusted EPS are forecast to jump by 5.5% to $0.19. Five Below is one such retailer that has been bucking the big retail trend of store closures. The company is on a store expansion drive that is driving its top line. In the first half of fiscal 2018, Five Below opened 67 new stores and has projected 125 store openings in total for fiscal 2018. It expects a total 2,500 stores in the US by 2020.
Five Below has touted new store openings as the biggest catalyst that will help it to achieve top-line growth of 20% by 2020. The company is also remodeling stores to enhance the shopping experience. Also, competitive pricing is helping Five Below to retain its footing amid the expansion of e-commerce.
Ratings for peers
Of the 26 analysts covering Dollar Tree (DLTR) stock, 58.0% have recommended a “buy,” and the rest of these analysts have recommended a “hold” rating. On November 26, J.P. Morgan slashed its target price for Dollar Tree to $84.00 from $90.00. The 12-month average target price for DLTR is $95.71, which reflects a 15.1% upside to its November 26 price.
Of the 28 analysts covering Dollar General (DG) stock, 61.0% have rated it as a “buy,” and 36.0% have rated it as a “hold.” The 12-month average target price for DG is $117.75, which reflects a ~9.3% upside.
Of the 12 analysts covering Big Lots (BIG) stock, 67.0% have rated it as a “buy,” and remaining have rated it as a “hold.” The 12-month average target price for Big Lots is $48.73, which reflects a 13.1% upside.