Five Below (FIVE) Outpaces Stock Market Gains: What You Should Know
Five Below (FIVE) closed at $135.08 in the latest trading session, marking a +1.15% move from the prior day. This change outpaced the S&P 500's 0.66% gain on the day. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.46%.
Coming into today, shares of the discount retailer had gained 13.48% in the past month. In that same time, the Retail-Wholesale sector gained 4.45%, while the S&P 500 gained 3.97%.
Investors will be hoping for strength from FIVE as it approaches its next earnings release. In that report, analysts expect FIVE to post earnings of $0.35 per share. This would mark no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $365.52 million, up 23.35% from the prior-year quarter.
FIVE's full-year Zacks Consensus Estimates are calling for earnings of $3.08 per share and revenue of $1.89 billion. These results would represent year-over-year changes of +15.79% and +21.23%, respectively.
Investors might also notice recent changes to analyst estimates for FIVE. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.76% lower. FIVE is currently a Zacks Rank #3 (Hold).
Investors should also note FIVE's current valuation metrics, including its Forward P/E ratio of 43.4. For comparison, its industry has an average Forward P/E of 12.07, which means FIVE is trading at a premium to the group.
Meanwhile, FIVE's PEG ratio is currently 1.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Miscellaneous was holding an average PEG ratio of 1.83 at yesterday's closing price.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.