10 Best Discount Store Stocks to Invest In

7. Five Below, Inc. (NASDAQ:FIVE)

Number of Hedge Fund Holders: 48

Five Below, Inc. (NASDAQ:FIVE) is a specialty value retailer offering various products, including licensed merchandise and select brands. Its product offerings include fashion, leisure, snacks, seasonal, electronic accessories, party, and more.

The company reported a 15% growth in sales in fiscal Q3 2024 to $844 million, while adjusted EPS was $0.42. These results were ahead of the company’s expectations, as it saw an overall improvement in sales across a range of its categories compared to fiscal Q2 2024. Five Below, Inc. (NASDAQ:FIVE) improved operational execution across all aspects of its business, driving a better customer experience.

The company’s performance for new stores also surpassed expectations. It opened a record 82 stores in fiscal Q3 2024, delivering an 18% growth versus last year’s fiscal Q3 store count. These new stores were located across 31 states, including Five Below, Inc.’s (NASDAQ:FIVE) 44th state of Wyoming. The company’s operations in the holiday period from November 3, 2024 through January 4, 2025 also showed strength. Its net sales increased 8.7% in the season to $1.19 billion, up from $1.10 billion in the comparable nine-week period between November 5, 2023 and January 6, 2024. Five Below, Inc. (NASDAQ:FIVE) ranks seventh on our list.