FIVE (Five Below, Inc.): Themes, ETFs, and Basket Ideas
FIVE is the ticker for Five Below, Inc.. This page covers what the company does, where it's heading, its approximate earnings and valuation, key competitors, the themes it belongs to, the ETFs that hold it, and similar stocks worth looking at.
What does Five Below, Inc. do?
Five Below is a discount retailer focused on teens, tweens, and value-seeking parents. The differentiation is the original price-point promise: most products were historically priced at $5 or below, with an expanded $5 Beyond section reaching up to $25 for higher-ticket items (electronics, seasonal furniture, larger toys). The store mix spans candy, party supplies, beauty, tech accessories (phone cases, headphones, chargers), seasonal merchandise, toys, and apparel.
Five Below operates about 1,600 stores in the US and has been one of the more aggressive store openers in physical retail over the past decade. The model has resonated particularly well during periods of consumer pressure when families seek affordable entertainment and gifts. Founded in 2002 by Tom Vellios and David Schlessinger, headquartered in Philadelphia, Pennsylvania. Winnie Park has been CEO since 2024.
Where is Five Below, Inc. heading?
1. Store expansion runway.
Five Below has been opening 200+ new stores annually with a long-term target of 3,500+ stores in the US. The store-opening pace is unusual for physical retail and is supported by attractive unit economics (typical new store payback in 12-18 months).
2. Five Beyond expansion.
The expanded $5-25 price-point section (Five Beyond) has been a meaningful revenue contributor. It allows Five Below to sell higher-ticket items (small electronics, seasonal furniture) without abandoning the original value positioning.
3. Tariff and sourcing risks.
Five Below sources heavily from China and other low-cost manufacturing geographies. Tariffs and supply chain disruptions can pressure gross margins. Management has been diversifying sourcing but China dependence remains meaningful.
4. Consumer pressure benefits and headwinds.
When consumers are squeezed, Five Below's value positioning attracts more traffic. But severely squeezed consumers also cut discretionary spending entirely, including affordable indulgences. The balance varies by economic conditions.
Risks worth tracking: Margin pressure from sourcing costs (tariffs, freight) and from minimum wage increases in store labor markets. Store opening pace must moderate eventually; until then capex is heavy.
Earnings and valuation (approximate, early 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Five Below, Inc.'s investor relations page or your broker.
- Revenue (TTM): ~$4.5 billion
- Operating margin: ~8% (compressed from historical levels)
- Net income (TTM): ~$300 million
- EPS (TTM): ~$5.50
- P/E (TTM): ~22x
- Price to sales: ~1.5x
- Dividend yield: None
- Free cash flow: ~$200 million annually (capex-heavy)
- Store count: ~1,600 with target of 3,500+
Five Below's valuation has compressed from peak levels as same-store sales growth has slowed and margins have come under pressure. The store-opening runway and unit economics remain attractive; the question is execution against the unit growth target.
Themes FIVE belongs to
These are the investment theses FIVE naturally fits into. Each links to a full theme guide listing every other stock that belongs and the ETFs commonly used as a passive proxy.
FIVE's competitors
Discount and dollar retail
Dollar Tree and Dollar General are the larger discount retail competitors in terms of store count and revenue. They target a more general value-seeking consumer; Five Below's teen/tween focus is differentiated. Family Dollar (owned by Dollar Tree) and 99 Cents Only Stores are other smaller competitors.
Teen and tween retail
Amazon for general teen purchases. Specialty teen retailers (Hot Topic, BoxLunch). Mass retail like Target captures some of the same teen spending.
Similar stocks
Other names that show up alongside FIVE in the same themes. Worth a look if you're thinking about diversification within a single thesis rather than concentration on one ticker.
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Using FIVE in a Walnut basket
The most useful question to ask about a single stock is rarely “will it go up?”. It's “does this fit a thesis I actually believe in, and how do I size it alongside other stocks that fit the same thesis?” That's what Walnut is built for.
Open the AI assistant on Walnut and describe a thesis (for example: “the AI infrastructure buildout”, “dividend growth large-caps”, “global semiconductors”) where FIVE would naturally fit. The AI proposes 5 to 6 constituents with target weights, you review, and you can fund the basket through your broker once you're ready.
Build a basket around FIVE with Walnut
Use Five Below, Inc. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What is Five Below's ticker symbol?
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FIVE, listed on Nasdaq. Officially Five Below, Inc. Founded 2002, headquartered in Philadelphia, Pennsylvania. Trades during US market hours.
Who are Five Below's competitors?
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In discount retail: Dollar Tree, Dollar General, Family Dollar. These are larger by revenue and store count but target a more general value-seeking consumer. Five Below's teen/tween focus is differentiated. In broader teen retail: Amazon, specialty teen retailers (Hot Topic, BoxLunch), and mass retail like Target.
Is Five Below a good value play?
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The store-opening runway is the central thesis: management has targeted 3,500+ stores from the current ~1,600. New store unit economics are strong (typical 12-18 month payback). The headwinds are margin pressure from sourcing costs and consumer trade-down toward dollar stores at the lowest price points. P/E has compressed to reflect these concerns.
What is Five Below's P/E ratio?
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Approximately 22x trailing twelve months as of early 2026. In line with the S&P 500 average. Lower than peak valuations Five Below reached in 2020-2021 as same-store sales growth has decelerated and margins have come under pressure.
What does Five Below do?
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Five Below is a discount retailer focused on teens, tweens, and value-seeking parents. Most products are priced at $5 or below; the Five Beyond section extends to $25 for higher-ticket items. Store mix spans candy, party supplies, beauty, tech accessories, seasonal merchandise, toys, and apparel. About 1,600 stores in the US.
Who owns the most Five Below stock?
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Major institutional holders include Vanguard (~10%), BlackRock (~8%), and State Street (~4%). Insider ownership is low. Founders Tom Vellios and David Schlessinger retain modest stakes. Five Below is broadly institutionally owned and held in small/mid-cap growth funds.
Which ETFs have the most Five Below exposure?
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Small and mid-cap ETFs hold FIVE at meaningful weights. IWM (iShares Russell 2000) and IJH (iShares Core S&P Mid-Cap) include FIVE in their universes. XLY does not hold FIVE because it's not in the S&P 500. Specialty retail ETFs hold FIVE at higher concentrations but have lower AUM. Small-cap-focused growth funds and consumer-themed funds are the larger active holders.
Which thematic baskets typically include Five Below?
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One theme on Walnut: Consumer discretionary (discount retail focused on teens and tweens with long store-opening runway). FIVE is a smaller-cap addition to consumer-discretionary baskets, complementing larger names like COST and TJX.
Is Five Below in the S&P 500?
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No. FIVE is in the S&P MidCap 400 but not the S&P 500 large-cap index. Market cap (~$5 billion) is below the threshold for S&P 500 inclusion. Future inclusion would require meaningful market cap appreciation. Mid-cap index inclusion provides passive flows but not the full S&P 500 mechanism.
What is Five Below's market cap?
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Approximately $5 billion as of early 2026. Market cap has compressed from peak levels reached in 2020-2021 as same-store sales growth decelerated and margins came under pressure. Future appreciation depends on store opening execution and margin recovery.
Does Five Below pay a dividend?
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No. Five Below has not paid a dividend historically. Capital has been prioritized for new store openings and inventory investment. Given the long store-opening runway (target of 3,500+ stores from current ~1,600), dividend initiation is unlikely in the near term.
What's the difference between Five Below and Dollar Tree?
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Both are discount retailers but with different target customers. Dollar Tree and Dollar General target general value-seeking consumers across the income spectrum, with most products priced at $1.25 or below (Dollar Tree) or under $5 (Dollar General). Five Below targets teens and tweens specifically with most products at $5 or below and the Five Beyond section to $25. Five Below's stores are more curated and higher-margin per square foot.
How many stores does Five Below have?
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Approximately 1,600 stores in the US as of early 2026, with management targeting 3,500+ over the long term. The company opens 200+ new stores annually with attractive unit economics (typical 12-18 month payback period on new stores). The store-opening runway is the central growth thesis.
Should I own Five Below directly or through a small-cap ETF?
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Direct FIVE gives concentrated discount retail exposure with full upside on the store-opening thesis. Small-cap ETFs (IWM, IJH) include FIVE at very small weights as one of thousands of holdings. For meaningful FIVE exposure, direct ownership is necessary; ETF weights are too small to matter.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Five Below, Inc.'s investor relations page or your broker before making investment decisions.