05:19 PM EDT, 06/04/2024 (MT Newswires) -- Five Below ( FIVE ) is scheduled to report fiscal Q1 financial results after Wednesday's closing bell, and UBS analysts Tuesday weighed in - and on - the company's stock price ahead of what they anticipate will be more bad news for the discount retailer.

The UBS analysts said Five Below ( FIVE ) has supplied Wall Street with ample reasons justifying frosty view of the company, including sluggish same-store sales and rising competition, along with expectations it could scale back its financial forecast for upcoming quarters.

While those concerns are valid given its recent performance, negative market sentiment has "translated to an excessive discount on the stock." The stock is currently trading a price-to-earnings multiple of 21.7x its projected earnings over the next 12 months, compared with an average of 33.5x over the past five years.

UBS has a buy rating on Five Below ( FIVE ) and a price target of $245 per share.