Five Below, Inc. (FIVE) Soars to 52-Week High, Time to Cash Out?

Shares of Five Below (FIVE) have been strong performers lately, with the stock up 1.5% over the past month. The stock hit a new 52-week high of $159.93 in the previous session. Five Below has gained 48.8% since the start of the year compared to the 5.9% move for the Zacks Retail-Wholesale sector and the 4.4% return for the Zacks Retail - Miscellaneous industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 27, 2025, Five Below reported EPS of $0.81 versus consensus estimate of $0.61 while it beat the consensus revenue estimate by 2.96%.For the current fiscal year, Five Below is expected to post earnings of $5.02 per share on $4.49 in revenues. This represents a -0.4% change in EPS on a 15.75% change in revenues. For the next fiscal year, the company is expected to earn $5.45 per share on $4.92 in revenues. This represents a year-over-year change of 8.57% and 9.74%, respectively.Valuation MetricsWhile Five Below has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Five Below has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 31.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.7X. On a trailing cash flow basis, the stock currently trades at 19.3X versus its peer group's average of 8.1X. Additionally, the stock has a PEG ratio of 2.28. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Five Below currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Five Below passes the test. Thus, it seems as though Five Below shares could have a bit more room to run in the near term.How Does FIVE Stack Up to the Competition?Shares of FIVE have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Petco Health and Wellness Company, Inc. (WOOF). WOOF has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of F.Earnings were strong last quarter. Petco Health and Wellness Company, Inc. beat our consensus estimate by 700.00%, and for the current fiscal year, WOOF is expected to post earnings of $0.12 per share on revenue of $5.98 billion.Shares of Petco Health and Wellness Company, Inc. have gained 4.8% over the past month, and currently trade at a forward P/E of 32X and a P/CF of 8.09X.The Retail - Miscellaneous industry is in the top 16% of all the industries we have in our universe, so it looks like there are some nice tailwinds for FIVE and WOOF, even beyond their own solid fundamental situation.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Five Below, Inc. (FIVE): Free Stock Analysis Report Petco Health and Wellness Company, Inc. (WOOF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks