Bull of the Day: Five Below (FIVE)

Five Below FIVE is a specialty value chain retailer that offers a wide range of premium-quality, trendy merchandise typically priced at $5 or less. The company primarily targets teenage and pre-teen shoppers with its products, which include certain brands and licensed merchandise.

The stock sports the highly coveted Zacks Rank #1 (Strong Buy), with bullish EPS revisions present across the board.

Five Below Raises Guidance Again

Five Below posted a double-beat versus our consensus expectations in its latest quarterly release, with revenues up nearly 23% and earnings up nearly 110%. The company has been a stellar earnings performer as of late, exceeding the Zacks Consensus EPS estimate by an average of 68% across its last four releases.

Comparable store sales increased by an impressive 14% YoY, with FIVE also expanding its footprint by opening 52 new stores throughout the period. The company raised its FY26 sales and EPS outlook as well, reflecting back-to-back guidance upgrades in its last two releases.

The growth picture for the retailer remains highly favorable, with earnings forecasted to grow nearly 60% in its current fiscal year on 20% higher sales. The stock currently sports a Style Score of ‘B’ for Growth.

It’s worth noting that FIVE is no stranger to holding a favorable Zacks Rank, as it’s been either a #2 (Buy) or #1 (Strong Buy) for nearly a year now, dating back to last October, with shares up 36% over the timeframe and more than doubling the S&P 500’s 17% return over the same period.

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Five Below FIVE would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy). 

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research