For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Five Below (FIVE - Free Report) one of those stocks right now? 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 222 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. FIVE is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for FIVE's full-year earnings has moved 1.77% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, FIVE has gained about 5.52% so far this year. At the same time, Retail-Wholesale stocks have gained an average of 2.15%. This means that Five Below is outperforming the sector as a whole this year.
To break things down more, FIVE belongs to the Retail - Miscellaneous industry, a group that includes 16 individual companies and currently sits at #65 in the Zacks Industry Rank. Stocks in this group have gained about 2.90% so far this year, so FIVE is performing better this group in terms of year-to-date returns.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to FIVE as it looks to continue its solid performance.