Five Below Retail Followers See Green Even As Stock Lands Price-Target Cuts On Wobbly Outlook

Retail followers of teen-focused discount retailer Five Below continue to remain strongly bullish on its stock even as the company received a string of price cuts following its recent earnings citing uncertain imminent tariff impact.

Since reporting its fourth-quarter print, Five Below’s target price has been cut by at least three Wall Street firms, which while acknowledging the company’s recent attempt at quantifying potential tariff risks, warned of tariff-linked impact in the second half of 2025.

Guggenheim, for instance, lowered the firm's price target to $125 from $140 with a ‘Buy’ rating.

“The outlook is much lower than the firm anticipated, embedding 100 basis points of unmitigated tariff margin pressure, primarily in the second half of the year,” The Fly reported citing the firm.

Goldman Sachs also lowered the firm's price target to $102 from $117 with a ‘Buy’ rating, a move it said reflected a decrease in relative price-to-earnings (P/E) multiples. Goldman, however, noted the company's efforts to mitigate impact through pricing and vendor strategies as it also faces “large margin headwinds.”

Truist, on the other hand, had a much more dire take: While the company’s “near-term” may see strength, it warned of a likely "hard fate" in the second half, The Fly reported. Truist slashed its price target to $86 from $93.

In its latest guidance, Five Below said its fiscal 2025 adjusted earnings per share will be between  $4.10 and $4.72, well below the consensus estimate of $4.93. Its revenue outlook is expected between $4.21 billion and $4.33 billion, compared to the consensus estimate of $3.86 billion.

Sentiment on Stocktwits ended in the ‘extremely bullish’ zone on Friday. While message volume inched up in the ‘extremely high’ zone.

FIVE sentiment meter and message volume on March 23

One bullish watcher on Stocktwits called FIVE a $300 stock caught up in a bear market spiral.

The watcher also noted with its P/E ratio, the stock “was way undervalued.”

The company’s CEO Winnie Park, credited with leading Forever 21’s turnaround efforts, has since taken the helm and spoken about focusing on making its products more affordable, a strategy that is typically considered as a hedge against potential macroeconomic downtrends.

Five Below stock is down 27% year-to-date.

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