In the latest trading session, Five Below (FIVE - Free Report) closed at $130.27, marking a -0.48% move from the previous day. This change lagged the S&P 500's 0.03% gain on the day. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Prior to today's trading, shares of the discount retailer had gained 23.4% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.41% and the S&P 500's gain of 3.1% in that time.
Wall Street will be looking for positivity from FIVE as it approaches its next earnings report date. This is expected to be November 29, 2018. On that day, FIVE is projected to report earnings of $0.19 per share, which would represent year-over-year growth of 5.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $303.76 million, up 18.11% from the year-ago period.
FIVE's full-year Zacks Consensus Estimates are calling for earnings of $2.57 per share and revenue of $1.54 billion. These results would represent year-over-year changes of +43.58% and +20.51%, respectively.
Investors might also notice recent changes to analyst estimates for FIVE. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.03% higher within the past month. FIVE currently has a Zacks Rank of #2 (Buy).
Investors should also note FIVE's current valuation metrics, including its Forward P/E ratio of 50.99. This valuation marks a premium compared to its industry's average Forward P/E of 15.54.
We can also see that FIVE currently has a PEG ratio of 1.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FIVE in the coming trading sessions, be sure to utilize Zacks.com.