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FIVE shares have been hot in 2026, even more so over the past year.
Strong quarterly results have helped lead the surge, with FIVE posting strong growth.
Margins have expanded, leading to a stronger profitability picture.
Five Below (FIVE - Free Report) 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.
Image Source: Zacks Investment Research
Five Below Soars
Five Below shares have seen a great 2026 so far, up nearly 25% and widely outperforming relative to the S&P 500. Quarterly results have helped lead the surge, with the stock seeing a positive post-earnings reaction following its latest set of better-than-expected quarterly results.
Image Source: Zacks Investment Research
The retailer posted a double-beat relative to our consensus expectations in the latest quarterly release, with net sales increasing nearly 25% alongside a 24% jump in adjusted EPS. The YoY sales growth rate was the highest we’ve seen from the company in years, with its gross margin also seeing nice improvement over recent periods. The strong sales growth, paired with an improving profitability picture, helps explain the bullish EPS revisions, driving the strong share performance overall.
Please note that the chart below tracks margins on a trailing twelve-month basis.
Image Source: Zacks Investment Research
The valuation picture here isn’t overly rich relative to its history, with the current 28.3X forward 12-month earnings multiple a hair beneath the five-year median and nowhere near the steep five-year highs of 46.2X. Earnings are forecasted to grow 20% in its current fiscal year, with estimates for the upcoming year suggesting a further 13.5% improvement.
The stock has been a great example of the Zacks Rank in action, as shown below. Shares have held the #1 (Strong Buy) rating all year long.
Image Source: Zacks Investment Research
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 - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
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Bull of the Day: Five Below (FIVE)
Key Takeaways
Five Below (FIVE - Free Report) 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.
Image Source: Zacks Investment Research
Five Below Soars
Five Below shares have seen a great 2026 so far, up nearly 25% and widely outperforming relative to the S&P 500. Quarterly results have helped lead the surge, with the stock seeing a positive post-earnings reaction following its latest set of better-than-expected quarterly results.
Image Source: Zacks Investment Research
The retailer posted a double-beat relative to our consensus expectations in the latest quarterly release, with net sales increasing nearly 25% alongside a 24% jump in adjusted EPS. The YoY sales growth rate was the highest we’ve seen from the company in years, with its gross margin also seeing nice improvement over recent periods. The strong sales growth, paired with an improving profitability picture, helps explain the bullish EPS revisions, driving the strong share performance overall.
Please note that the chart below tracks margins on a trailing twelve-month basis.
Image Source: Zacks Investment Research
The valuation picture here isn’t overly rich relative to its history, with the current 28.3X forward 12-month earnings multiple a hair beneath the five-year median and nowhere near the steep five-year highs of 46.2X. Earnings are forecasted to grow 20% in its current fiscal year, with estimates for the upcoming year suggesting a further 13.5% improvement.
The stock has been a great example of the Zacks Rank in action, as shown below. Shares have held the #1 (Strong Buy) rating all year long.
Image Source: Zacks Investment Research
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 - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).