Five Below(US:FIVE) ZACKSยท2025-10-21 14:16Company Performance - Five Below (FIVE) shares have increased by 1.5% over the past month and reached a new 52-week high of $159.93, with a year-to-date gain of 48.8% compared to 5.9% for the Zacks Retail-Wholesale sector and 4.4% for the Zacks Retail - Miscellaneous industry [1] - The company has consistently exceeded earnings expectations, reporting EPS of $0.81 against a consensus estimate of $0.61 in its last earnings report on August 27, 2025, and beating revenue estimates by 2.96% [2] Financial Projections - For the current fiscal year, Five Below is projected to achieve earnings of $5.02 per share on revenues of $4.49 billion, reflecting a -0.4% change in EPS and a 15.75% increase in revenues [3] - In the next fiscal year, earnings are expected to rise to $5.45 per share on revenues of $4.92 billion, indicating year-over-year changes of 8.57% and 9.74%, respectively [3] Valuation Metrics - Five Below's current trading metrics show a P/E ratio of 31.1X for the current fiscal year, which is above the peer industry average of 15.7X, and a trailing cash flow basis of 19.3X compared to the peer group's average of 8.1X [7] - The stock has a PEG ratio of 2.28, which does not place it among the top value stocks [7] Zacks Rank and Style Scores - Five Below holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, which suggests potential for further price appreciation [8] - The company has a Value Score of C, a Growth Score of A, and a Momentum Score of D, resulting in a combined VGM Score of B [6] Industry Comparison - In comparison to industry peers, Petco Health and Wellness Company, Inc. (WOOF) has a Zacks Rank of 1 (Strong Buy) and shows strong earnings performance, beating consensus estimates by 700% [9][10] - The Retail - Miscellaneous industry is performing well, ranking in the top 16% of all industries, indicating favorable conditions for both Five Below and Petco [11]