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Why Five Below Stock Got Socked Today
FIVEFive Below(FIVE) The Motley Fool·2025-05-23 22:16

Core Viewpoint - Five Below's stock experienced a 2.5% decline following a downgrade from CFRA, which changed its recommendation from buy to hold with a price target of 108[1][2].Group1:AnalystRecommendationsCFRAdowngradedFiveBelowsrecommendationtoholdfrombuy,settingapricetargetof108 [1][2]. Group 1: Analyst Recommendations - CFRA downgraded Five Below's recommendation to hold from buy, setting a price target of 108 [2]. - The downgrade occurred shortly before Five Below is expected to release its first quarter fiscal 2026 earnings report [4]. Group 2: Earnings Expectations - Analysts anticipate a 19% year-over-year increase in sales for Five Below, projecting sales to reach 966million[4].Pershareearningsareexpectedtoriseby38966 million [4]. - Per-share earnings are expected to rise by 38% to 0.83 [4]. Group 3: Company Guidance - Five Below raised its Q1 sales estimate to approximately 967million,aligningwithanalystconsensus,upfromapreviousforecastof967 million, aligning with analyst consensus, up from a previous forecast of 905 million to $925 million [5]. - The company expects same-store sales growth of 6.7%, significantly higher than the earlier projection of flat to 2% [5]. Group 4: Market Context - The current economic environment, particularly regarding the tariff situation, is not as severe as previously feared, which may positively influence retail stocks like Five Below [6].