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Five Below highlighted as Zacks Bull and DICK's Sporting Goods Bear of the Day
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For Immediate Release
Chicago, IL – October 7, 2026 – Zacks Equity Research shares Five Below (FIVE - Free Report) as the Bull of the Day and DICK’s Sporting Goods (DKS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Rivian Automotive (RIVN - Free Report) , Lucid Group’s (LCID - Free Report)
Five Below 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 would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
DICK’s Sporting Goods operates as an omni-channel sporting goods retailer, offering athletic shoes, apparel, accessories, and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, etc.
The company is a current Zacks Rank #5 (Strong Sell), with EPS revisions remaining on a bearish trajectory over recent months.
DKS Lowers Outlook
DICK’S Sporting Goods recently had a tough post-earnings reaction after reporting adjusted EPS of $3.53 and revenue of $5.6 billion, with earnings sliding roughly 20% YoY. Both items fell short of our consensus estimates, with the company missing the Zacks Consensus EPS estimate by an average of roughly -3.5% across its last four releases.
DICK’S business remained relatively solid, with comparable sales rising 4.9%, but Foot Locker proved to be a much bigger drag on the overall story. Comparable sales at Foot Locker fell 3.6%, as softer demand for older footwear styles, fewer major product launches, and a more promotional backdrop all weighed on performance.
That pressure also spilled into its outlook, leading management to cut its fiscal 2026 adjusted EPS outlook to a range of $11 to $12. Shares plunged after the guidance cut, with both annual and quarterly EPS estimates taking a huge hit following the release.
Shares are now down more than 30% YTD following the post-earnings pressure, erasing several years of gains and trading near levels we haven’t seen since late 2023 and early 2024.
Bottom Line
Negative earnings estimate revisions stemming from a lowered outlook paint a challenging picture for the company’s shares in the near term.
DICK’s Sporting Goods is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
Rivian & Lucid After Q3 Deliveries: Is Either Stock a Buy Now?
The third-quarter delivery numbers are in for two of America's best-known EV startups, and they tell opposite stories. Rivian Automotive logged record deliveries and beat expectations. Lucid Group’s deliveries slipped and the company leaned on old inventory. Both companies still burn heavy cash and sell cars at weak margins. Let’s assess which stock has an edge now. Before that, here’s a closer look at their delivery numbers.
RIVN’s Record Quarter
Rivian built 19,751 vehicles at its Illinois plant and delivered 19,248, topping Wall Street's average estimate of 18,000, per CNBC. Deliveries rose 45.8% from the year-ago quarter and 58% sequentially.
The driver was R2, a smaller and cheaper SUV that began reaching customers in June. Until then, Rivian sold only premium vehicles, the R1S SUV and R1T pickup. A lower-priced model matters more now that federal EV tax credits have ended, tariffs are biting and industry demand is soft. Management says the R2 ramp is on track and volumes should climb over the coming quarters.
Rivian reaffirmed its 2026 target of 65,000 to 70,000 deliveries, higher from 42,247 delivered last year. After 41,807 deliveries in the first nine months of 2026, it needs at least 23,193 more in the fourth quarter to reach the bottom of that range, about 20% above third-quarter’s record. That is demanding but plausible if R2 output keeps rising. Since third-quarter deliveries already beat estimates, the bar is high, and any slip in R2 supply would be concerning.
Lucid’s Weaker Sales & Smaller Output
Lucid delivered 3,806 vehicles but produced only 2,954. Deliveries fell short of analyst estimates. They were down 6.6% on a yearly basis and 3.7% sequentially. Production dropped 38% from 4,774 in second-quarter 2026 after the company removed a second shift at its Arizona plant. Selling from stock instead of building new cars is part of a broader cost overhaul.
Lucid is attempting a company-wide reset aimed at $1.4 billion in cash flow gains this year— roughly $600-800 million from inventory, $500 million from capital spending and $200 million from operating costs. That helps preserve cash, but it does not fix the underlying economics of the business.
In the first nine months of 2026, Lucid delivered 10,852 vehicles. The company sold 15,841 units last year. To merely match 2025 levels, it needs to deliver 4,989 vehicles in the fourth quarter, roughly 31% more than the September quarter. That looks quite unlikely, although Lucid says demand for its Gravity SUV is regaining momentum.
Autonomy Bets on Both Sides
Both firms are chasing robotaxi revenues. Lucid's new deal with Bolt, a European ride platform, targets at least 25,000 autonomous vehicles as part of Bolt's goal of 100,000 by 2035. Separately, Uber Technologies has committed to at least 35,000 Lucid cars and invested $500 million. Nuro and NVIDIA are also partners.
Rivian also signed with Uber in March for up to 50,000 R2 robotaxis, with the latter pledging up to $1.25 billion through 2031, tied to milestones. Volkswagen is another pillar. Its joint venture supplied 60% of Rivian's software and services revenues in the second quarter, and Rivian expects $1 billion in non-recourse debt financing from Volkswagen this year.
These deals offer long-term optionality, but for now they are promises, not profits.
Margins Remain the Core Problem
Lucid’s gross margin was negative 105% in the second quarter, and free cash flow was negative $1.48 billion, underscoring how far vehicle economics are from breakeven. Reaching positive margins will require better fixed-cost absorption, lower conversion costs and tighter inventory control. Lower production, however, limits the scale benefits it can capture.
Rivian is closer to breakeven compared to Lucid but still loses money on its vehicles. Its second-quarter automotive gross loss was $36 million, a negative 3% margin, and the R2 launch added about $100 million in extra costs from ramp inefficiencies, expedited freight and supplier premiums. The pressure is expected to continue in the third quarter before scale benefits emerge in the final quarter of 2026. In the June quarter, Rivian’s free cash flow was negative $849 million.
Price Performance & Estimates
Year to date, Lucid has tanked more than 60%, underperforming Rivian’s decline of 26%.
The consensus estimates indicate that Rivian's loss per share will narrow 8% in 2026 and a further 23% in 2027.
Lucid's loss per share is expected to widen 0.5% this year before shrinking 46.5% in 2027.
But Lucid is the weaker case, with shrinking deliveries and a gross margin that is deeply negative. It is likely to post weaker annual deliveries in 2026. Meanwhile, Rivian is poised for full-year 2026 delivery growth. Credible product ramp and strategic backers augur well for RIVN, but it still burns cash and needs fourth-quarter margins to improve sharply.
While Rivian holds an edge over Lucid currently, investors should consider the stock only if the fourth quarter shows R2 scale narrowing its automotive gross loss to breakeven or better.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
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Five Below highlighted as Zacks Bull and DICK's Sporting Goods Bear of the Day
For Immediate Release
Chicago, IL – October 7, 2026 – Zacks Equity Research shares Five Below (FIVE - Free Report) as the Bull of the Day and DICK’s Sporting Goods (DKS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Rivian Automotive (RIVN - Free Report) , Lucid Group’s (LCID - Free Report)
Here is a synopsis of all five stocks:
Bull of the Day:
Five Below 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 would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
DICK’s Sporting Goods operates as an omni-channel sporting goods retailer, offering athletic shoes, apparel, accessories, and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, etc.
The company is a current Zacks Rank #5 (Strong Sell), with EPS revisions remaining on a bearish trajectory over recent months.
DKS Lowers Outlook
DICK’S Sporting Goods recently had a tough post-earnings reaction after reporting adjusted EPS of $3.53 and revenue of $5.6 billion, with earnings sliding roughly 20% YoY. Both items fell short of our consensus estimates, with the company missing the Zacks Consensus EPS estimate by an average of roughly -3.5% across its last four releases.
DICK’S business remained relatively solid, with comparable sales rising 4.9%, but Foot Locker proved to be a much bigger drag on the overall story. Comparable sales at Foot Locker fell 3.6%, as softer demand for older footwear styles, fewer major product launches, and a more promotional backdrop all weighed on performance.
That pressure also spilled into its outlook, leading management to cut its fiscal 2026 adjusted EPS outlook to a range of $11 to $12. Shares plunged after the guidance cut, with both annual and quarterly EPS estimates taking a huge hit following the release.
Shares are now down more than 30% YTD following the post-earnings pressure, erasing several years of gains and trading near levels we haven’t seen since late 2023 and early 2024.
Bottom Line
Negative earnings estimate revisions stemming from a lowered outlook paint a challenging picture for the company’s shares in the near term.
DICK’s Sporting Goods is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
Rivian & Lucid After Q3 Deliveries: Is Either Stock a Buy Now?
The third-quarter delivery numbers are in for two of America's best-known EV startups, and they tell opposite stories. Rivian Automotive logged record deliveries and beat expectations. Lucid Group’s deliveries slipped and the company leaned on old inventory. Both companies still burn heavy cash and sell cars at weak margins. Let’s assess which stock has an edge now. Before that, here’s a closer look at their delivery numbers.
RIVN’s Record Quarter
Rivian built 19,751 vehicles at its Illinois plant and delivered 19,248, topping Wall Street's average estimate of 18,000, per CNBC. Deliveries rose 45.8% from the year-ago quarter and 58% sequentially.
The driver was R2, a smaller and cheaper SUV that began reaching customers in June. Until then, Rivian sold only premium vehicles, the R1S SUV and R1T pickup. A lower-priced model matters more now that federal EV tax credits have ended, tariffs are biting and industry demand is soft. Management says the R2 ramp is on track and volumes should climb over the coming quarters.
Rivian reaffirmed its 2026 target of 65,000 to 70,000 deliveries, higher from 42,247 delivered last year. After 41,807 deliveries in the first nine months of 2026, it needs at least 23,193 more in the fourth quarter to reach the bottom of that range, about 20% above third-quarter’s record. That is demanding but plausible if R2 output keeps rising. Since third-quarter deliveries already beat estimates, the bar is high, and any slip in R2 supply would be concerning.
Lucid’s Weaker Sales & Smaller Output
Lucid delivered 3,806 vehicles but produced only 2,954. Deliveries fell short of analyst estimates. They were down 6.6% on a yearly basis and 3.7% sequentially. Production dropped 38% from 4,774 in second-quarter 2026 after the company removed a second shift at its Arizona plant. Selling from stock instead of building new cars is part of a broader cost overhaul.
Lucid is attempting a company-wide reset aimed at $1.4 billion in cash flow gains this year— roughly $600-800 million from inventory, $500 million from capital spending and $200 million from operating costs. That helps preserve cash, but it does not fix the underlying economics of the business.
In the first nine months of 2026, Lucid delivered 10,852 vehicles. The company sold 15,841 units last year. To merely match 2025 levels, it needs to deliver 4,989 vehicles in the fourth quarter, roughly 31% more than the September quarter. That looks quite unlikely, although Lucid says demand for its Gravity SUV is regaining momentum.
Autonomy Bets on Both Sides
Both firms are chasing robotaxi revenues. Lucid's new deal with Bolt, a European ride platform, targets at least 25,000 autonomous vehicles as part of Bolt's goal of 100,000 by 2035. Separately, Uber Technologies has committed to at least 35,000 Lucid cars and invested $500 million. Nuro and NVIDIA are also partners.
Rivian also signed with Uber in March for up to 50,000 R2 robotaxis, with the latter pledging up to $1.25 billion through 2031, tied to milestones. Volkswagen is another pillar. Its joint venture supplied 60% of Rivian's software and services revenues in the second quarter, and Rivian expects $1 billion in non-recourse debt financing from Volkswagen this year.
These deals offer long-term optionality, but for now they are promises, not profits.
Margins Remain the Core Problem
Lucid’s gross margin was negative 105% in the second quarter, and free cash flow was negative $1.48 billion, underscoring how far vehicle economics are from breakeven. Reaching positive margins will require better fixed-cost absorption, lower conversion costs and tighter inventory control. Lower production, however, limits the scale benefits it can capture.
Rivian is closer to breakeven compared to Lucid but still loses money on its vehicles. Its second-quarter automotive gross loss was $36 million, a negative 3% margin, and the R2 launch added about $100 million in extra costs from ramp inefficiencies, expedited freight and supplier premiums. The pressure is expected to continue in the third quarter before scale benefits emerge in the final quarter of 2026. In the June quarter, Rivian’s free cash flow was negative $849 million.
Price Performance & Estimates
Year to date, Lucid has tanked more than 60%, underperforming Rivian’s decline of 26%.
The consensus estimates indicate that Rivian's loss per share will narrow 8% in 2026 and a further 23% in 2027.
Lucid's loss per share is expected to widen 0.5% this year before shrinking 46.5% in 2027.
Our Take
Neither Rivian nor Lucid is a clean buy today. Both carry a Zacks Rank #3 (Hold) currently.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
But Lucid is the weaker case, with shrinking deliveries and a gross margin that is deeply negative. It is likely to post weaker annual deliveries in 2026. Meanwhile, Rivian is poised for full-year 2026 delivery growth. Credible product ramp and strategic backers augur well for RIVN, but it still burns cash and needs fourth-quarter margins to improve sharply.
While Rivian holds an edge over Lucid currently, investors should consider the stock only if the fourth quarter shows R2 scale narrowing its automotive gross loss to breakeven or better.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
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Zacks Investment Research
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.