For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Five Below (FIVE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Five Below is a member of the Retail-Wholesale sector. This group includes 197 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Five Below is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for FIVE's full-year earnings has moved 1.4% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, FIVE has returned 51.4% so far this year. Meanwhile, stocks in the Retail-Wholesale group have gained about 7.5% on average. This shows that Five Below is outperforming its peers so far this year.
Another stock in the Retail-Wholesale sector, Kohl's (KSS), has outperformed the sector so far this year. The stock's year-to-date return is 76%.
Over the past three months, Kohl's' consensus EPS estimate for the current year has increased 97.6%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Five Below belongs to the Retail - Miscellaneous industry, a group that includes 16 individual stocks and currently sits at #157 in the Zacks Industry Rank. This group has gained an average of 2.5% so far this year, so FIVE is performing better in this area.
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 +50.4% year to date.
Investors with an interest in Retail-Wholesale stocks should continue to track Five Below and Kohl's. These stocks will be looking to continue their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Five Below, Inc. (FIVE): Free Stock Analysis Report Kohl's Corporation (KSS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
