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Five Below Trades Above 50 & 200-Day SMAs: Time to Buy, Hold or Sell?

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Key Takeaways

  • FIVE is trading above its 50 and 200-day SMAs, signaling sustained momentum and positive market sentiment.
  • Five Below is seeing broad-based sales growth from Gen Alpha, Gen Z and millennial shoppers.
  • FIVE continues expanding its store base and driving growth from higher-priced items and better operations.

Five Below, Inc. (FIVE - Free Report) has demonstrated strong upward momentum. FIVE ended Friday’s trading session at $191.64, above its 50 and 200-day simple moving averages (SMAs) of $181.67 and $143.76, respectively, highlighting a continued uptrend. This technical strength, combined with consistent momentum, reflects positive market sentiment and investor confidence in Five Below's financial stability and growth potential.

 

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Shares of this specialty value-chain retailer are currently trading 6.6% below its 52-week high of $205.22 reached on Jan. 13, 2026, making investors contemplate their next move. In the past six months, the FIVE stock has gained 40.4%, significantly outperforming the Zacks Retail-Miscellaneous industry’s 6.2% growth. 

The company’s enhanced operational efficiency and growth initiatives have also helped it outperform the broader Retail-Wholesale sector and the S&P 500 index’s rallies of 7.7% and 13%, respectively, during the same period.

 

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Image Source: Zacks Investment Research

 

Five Below’s Growth Drivers & Expansion Strategy

FIVE’s customer-centric strategy continues to gain traction, supporting broad-based demand across categories and customer cohorts. Management highlighted that most merchandising departments posted positive comparable sales in the third quarter of fiscal 2025, with growth spanning both new and returning customers, as well as all income groups.

An increased focus on Gen Alpha, Gen Z and millennial shoppers, combined with trend-right assortments and consistent in-store execution, has helped reinforce Five Below’s position as a destination for value-driven discretionary spending.

The company’s evolving value and pricing architecture is also contributing meaningfully to growth. While roughly 80% of the assortment remains priced at $5 and below, customers have shown strong receptivity to higher price points, particularly items priced at $7, $10 and $15 when integrated directly into core departments. Management cited double-digit growth in these above-$5 offerings, supporting ticket expansion without eroding the brand’s value perception.

Store expansion remains a long-term growth lever, supported by improving new-store execution. Five Below ended the third quarter with more than 1,900 stores after opening 49 net new locations during the period, and management emphasized that new stores are performing in line with expectations. Strong grand-opening results in newer markets have reinforced confidence in the company’s ability to scale its concept geographically while maintaining store-level productivity.

Behind the scenes, operational discipline continues to reinforce these growth initiatives. Improvements in inventory planning, in-stock availability and shrink control are enabling the company to better meet demand while protecting profitability. Coupled with tight cost management and stronger cross-functional coordination, these efforts are creating a more scalable operating model that supports continued expansion and long-term earnings durability.

FIVE’s Valuation Picture

From a valuation standpoint, Five Below is trading at a forward 12-month price-to-sales ratio of 2.25X, up from the industry average of 1.94X.

 

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Image Source: Zacks Investment Research

 

Estimate Revisions Favor Five Below Stock

The Zacks Consensus Estimate for Five Below’s fiscal 2025 earnings implies year-over-year growth of 24.6%, whereas the same for fiscal 2026 indicates an uptick of 7.5%. Estimates for fiscal 2025 and 2026 have been revised upward by 44 cents and 63 cents, respectively, in the past 30 days.

 

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Image Source: Zacks Investment Research

 

Final Word on FIVE

Five Below’s differentiated value proposition, expanding pricing architecture and disciplined store growth continue to drive broad-based demand and earnings durability. Operational improvements and shrink control are strengthening profitability as the business scales. With upward estimate revisions and solid long-term growth visibility, FIVE remains well-positioned for investors seeking exposure to a high-growth specialty retailer with improving fundamentals.

Five Below currently sports a Zacks Rank #1 (Strong Buy).

Other Key Picks

Some other top-ranked stocks are FIGS Inc. (FIGS - Free Report) , American Eagle Outfitters Inc. (AEO - Free Report) and The Gap, Inc. (GAP - Free Report) . 

FIGS is a direct-to-consumer healthcare apparel and lifestyle brand. It flaunts a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 450% and 7.1%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 87.5%.

American Eagle is a specialty retailer of casual apparel, accessories and footwear. It sports a Zacks Rank of 1 at present.

The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings and sales suggests a decline of 21.3% and growth of 2.5%, respectively, from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 35.1%.

Gap is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It currently has a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for Gap’s fiscal 2026 earnings and sales implies a decline of 2.7% and growth of 1.8%, respectively, from the year-ago actuals. Gap delivered a trailing four-quarter average earnings surprise of 19.1%.

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