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

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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 - 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 193 different companies and currently sits at #10 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Five Below is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for FIVE's full-year earnings has moved 25.6% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, FIVE has gained about 16.4% so far this year. Meanwhile, the Retail-Wholesale sector has returned an average of -0.6% on a year-to-date basis. This shows that Five Below is outperforming its peers so far this year.

Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Kingfisher PLC (KGFHY - Free Report) . The stock has returned 16.1% year-to-date.

In Kingfisher PLC's case, the consensus EPS estimate for the current year increased 2.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Five Below is a member of the Retail - Miscellaneous industry, which includes 13 individual companies and currently sits at #91 in the Zacks Industry Rank. Stocks in this group have gained about 8.7% so far this year, so FIVE is performing better this group in terms of year-to-date returns. Kingfisher PLC is also part of the same industry.

Investors with an interest in Retail-Wholesale stocks should continue to track Five Below and Kingfisher PLC. These stocks will be looking to continue their solid performance.

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