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Five Below (FIVE) Stock Moves 1.09%: What You Should Know

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In the latest trading session, Five Below (FIVE - Free Report) closed at $130.06, marking a +1.09% move from the previous day. This change outpaced the S&P 500's 0% on the day. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.06%.

Heading into today, shares of the discount retailer had gained 12.41% over the past month, outpacing the Retail-Wholesale sector's gain of 0.86% and the S&P 500's gain of 0.78% in that time.

Investors will be hoping for strength from FIVE as it approaches its next earnings release, which 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%. Our most recent consensus estimate is calling for quarterly revenue of $304.08 million, up 18.24% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.57 per share and revenue of $1.54 billion, which would represent changes of +43.58% and +20.62%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for FIVE. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 3.28% higher. FIVE is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, FIVE is currently trading at a Forward P/E ratio of 50.01. Its industry sports an average Forward P/E of 14.15, so we one might conclude that FIVE is trading at a premium comparatively.

Also, we should mention that FIVE has a PEG ratio of 1.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Miscellaneous industry currently had an average PEG ratio of 1.56 as of yesterday's close.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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