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Is Five Below (FIVE) Stock Outpacing Its Retail-Wholesale Peers This Year?

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Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Five Below (FIVE - Free Report) 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? 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 our Retail-Wholesale group, which includes 220 different companies and currently sits at #5 in the Zacks Sector Rank. 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Five Below is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for FIVE's full-year earnings has moved 1.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, FIVE has returned 18.4% so far this year. Meanwhile, the Retail-Wholesale sector has returned an average of -5.3% on a year-to-date basis. This means that Five Below is performing better than its sector in terms of year-to-date returns.

Home Depot (HD - Free Report) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 53.2%.

Over the past three months, Home Depot's consensus EPS estimate for the current year has increased 6.7%. 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 21 individual stocks and currently sits at #96 in the Zacks Industry Rank. Stocks in this group have gained about 5.6% so far this year, so FIVE is performing better this group in terms of year-to-date returns.

Home Depot, however, belongs to the Building Products - Retail industry. Currently, this 9-stock industry is ranked #18. The industry has moved +48.9% so far this year.

Investors interested in the Retail-Wholesale sector may want to keep a close eye on Five Below and Home Depot as they attempt to continue their solid performance.


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