Is Five Below Stock (FIVE) a Good Investment?

By AAII Staff
September 03, 2026
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Learn more about whether Five Below, Inc. is a good stock to buy or sell based on recent news as well as its key financial metrics. Read on to find out how (FIVE) grades on certain investment factors and determine whether it meets your investment needs.

Latest Five Below, Inc. Stock News

As of September 02, 2026, Five Below, Inc. had a $13.4 billion market capitalization, putting it in the 81st percentile of companies in the Specialty Retail industry.

Currently, Five Below, Inc.’s price-earnings ratio is 30.7. Five Below, Inc.’s trailing 12-month revenue is $5.1 billion with a 8.7% profit margin. Year-over-year quarterly sales growth most recently was 32.5%. Analysts expect adjusted earnings to reach $9.262 per share for the current fiscal year. Five Below, Inc. does not currently pay a dividend.



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Grading Five Below, Inc. Stock

Before you choose to buy, sell or hold Five Below, Inc. stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (FIVE) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at Five Below, Inc.’s stock grades for value, growth and quality. Learn more about A+ Investor here!

Five Below, Inc. Stock Value Grade

Value Grade:

Metric Rank FIVE Sector Median
Price/Sales 57 2.64 0.68
Price/Earnings 70 30.7 18.8
EV/EBITDA 45 11.4 11.7
Shareholder Yield 52 (0.4%) 0.0%
Price/Book Value 81 5.81 1.78
Price/Free Cash Flow 63 26.5 15.9

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade is derived from a stock’s value score. The value score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Five Below, Inc. has a Value Score of 29, which is Expensive.

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Five Below, Inc. Stock Quality Grade

Quality Grade:

Metric Score FIVE Sector Median
Return on Assets (ROA) 85 9.3% 2.8%
Return on Invested Capital (ROIC) 49 13.9% 18.5%
Gross Income to Assets 80 37.0% 30.3%
Buyback Yield 57 (0.4%) (0.3%)
Change in Total Liabilities to Assets 46 2.9% 1.9%
Accruals to Assets 50 (4.8%) (5.9%)
Z Double Prime Bankruptcy Risk (Z) Score 75 7.66 5.54
F-Score 92 8 5

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Grade is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Five Below, Inc. has a Quality Score of 86, which is Very Strong.

Five Below, Inc. Stock Earnings Estimate Revisions Grade

Estimate Revisions Grade:

Metric Score FIVE Sector Median
Quarterly Surprise SUE Latest Qtr 71 3.3 1.4
Quarterly Surprise SUE Prior Qtr 86 5.5 1.2
EPS Est Current Year % Rev Last Month 70 1.7% 0.0%
EPS Est Current Year % Rev 3 Mos 79 8.6% 0.6%

The Earnings Estimate Revisions Score considers the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. The Earnings Estimate Revisions Score is based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Five Below, Inc. has an Earnings Estimate Revisions Score of 77, which is Positive.

Other Five Below, Inc. Stock Grades

In addition to Value, Estimate Revisions and Quality, A+ Investor also provides grades for Growth and Momentum.

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The Momentum Grade helps uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower—growth companies. AAII measures several dimensions of growth in its Growth Grade, including year—over—year increases in sales and earnings, long(er)—term historical sales and earnings growth rates and analyst‐forecasted long—term earnings growth.

These 2 key factors, when combined with the above, provide a holistic view into a stock. Further, by joining A+ Investor you can see whether Five Below, Inc.’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.

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Should I Buy Five Below, Inc. Stock?

Overall, Five Below, Inc. stock has a Value Grade of D, Quality Grade of A, and Earnings Estimate Revisions Grade of B.

Whether or not you should buy Five Below, Inc. stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.

Lastly, it’s important to evaluate a stock by comparing it against others in the same industry. Review the table below to see how Five Below, Inc. stock stands up against its competitors. Click into any of the below tickers to see their stock grades for value, momentum, quality and EPS revisions.

Five Below, Inc. (FIVE) Competitors

Companies similar to Five Below, Inc. in the Specialty Retail industry.

Company name Ticker Market Cap
DICK'S Sporting Goods, Inc. DKS $12.20Bil
Wayfair Inc. W $13.31Bil
Penske Automotive Group, Inc. PAG $14.36Bil
Burlington Stores, Inc. BURL $16.04Bil
Chow Tai Fook Jewellery Group Limited CJEWY $16.03Bil

Five Below, Inc. Stock: Bottom Line

You can use the information about how Five Below, Inc. is graded to determine if you should invest in this stock. However, you should decide whether Five Below, Inc.’s stock is a buy, sell or hold based on a combination of grades, metrics, ratios and U.S. Securities and Exchange Commission (SEC) reports.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets—without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

So, if you’re still on the fence about whether Five Below, Inc. is a buy, sell or hold, you can utilize AAII’s expansive and robust screening tools like A+ Investor to help with your decision.

A+ Investor adds to its qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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