Five Below (FIVE - Free Report) closed the most recent trading day at $127.54, moving -0.2% from the previous trading session. This move lagged the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 0.82%, and the Nasdaq, a tech-heavy index, added 1.14%.
Prior to today's trading, shares of the discount retailer had lost 5.79% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.96% and the S&P 500's loss of 3.2% in that time.
Investors will be hoping for strength from FIVE as it approaches its next earnings release. In that report, analysts expect FIVE to post earnings of $0.35 per share. This would mark no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $365.70 million, up 23.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.08 per share and revenue of $1.89 billion. These totals would mark changes of +15.79% and +21.27%, respectively, from last year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. FIVE is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, FIVE is holding a Forward P/E ratio of 41.54. Its industry sports an average Forward P/E of 11.25, so we one might conclude that FIVE is trading at a premium comparatively.
It is also worth noting that FIVE currently has a PEG ratio of 1.43. 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. The Retail - Miscellaneous industry currently had an average PEG ratio of 1.85 as of yesterday's close.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.