For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Five Below (FIVE) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.
Five Below is a member of the Retail-Wholesale sector. This group includes 196 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Five Below is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for FIVE's full-year earnings has moved 16.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, FIVE has moved about 73.4% on a year-to-date basis. Meanwhile, stocks in the Retail-Wholesale group have gained about 6.6% on average. This shows that Five Below is outperforming its peers so far this year.
One other Retail-Wholesale stock that has outperformed the sector so far this year is Kohl's (KSS). The stock is up 61.5% year-to-date.
In Kohl's' case, the consensus EPS estimate for the current year increased 110.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Five Below belongs to the Retail - Miscellaneous industry, a group that includes 15 individual companies and currently sits at #103 in the Zacks Industry Rank. On average, this group has gained an average of 7.7% so far this year, meaning that FIVE is performing better in terms of year-to-date returns.
On the other hand, Kohl's belongs to the Retail - Regional Department Stores industry. This 3-stock industry is currently ranked #5. The industry has moved +47.2% year to date.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Five Below and Kohl's as they could maintain their solid performance.
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Kohl's Corporation (KSS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
