Track market-moving stories before they get noisy

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Five Below (FIVE - Free Report) Five Below, Inc. is a Pennsylvania-based specialty value retailer offering trend-right merchandise priced mostly at $5 and below, with a select range priced above $5. The chain targets pre-teens, teens and value-focused families with an edited assortment that includes certain brands and licensed merchandise.

FIVE is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. FIVE has a Growth Style Score of A, forecasting year-over-year earnings growth of 36.1% for the current fiscal year.

For fiscal 2027, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.92 to $9.08 per share. FIVE boasts an average earnings surprise of +70.1%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, FIVE should be on investors' short list.

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, July 23:

Macro Bank (BMA - Free Report) : This leading bank in Argentina has a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.4% over the last 60 days.

Macro Bank has a PEG ratio of 0.59 compared with 0.86 for the industry. The company possesses a Growth Score of A.

Five Below, Inc. (FIVE - Free Report) : This specialty retail company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.3% over the last 60 days.

Five Below has a PEG ratio of 1.07 compared with 2.25 for the industry. The company possesses a Growth Score of A.

Dycom Industries, Inc. (DY - Free Report) : This infrastructure services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 18.1% over the last 60 days.

Dycom Industries has a PEG ratio of 0.70 compared with 1.28 for the industry. The company possesses a Growth Score of A.

See the full list of top ranked stocks here.

Learn more about the Growth score and how it is calculated here.

Key Takeaways FIVE integrated premium products into core categories after eliminating the standalone Five Beyond section.FIVE pairs simpler pricing with stronger merchandising, in-stock levels and seasonal product showcases.FIVE posted 22.7% growth in comparable sales in Q1 fiscal 2026, with 15 of 18 departments growing. Five Below, Inc. (FIVE - Free Report) is making meaningful progress with its pricing simplification strategy, an initiative designed to create a more intuitive shopping experience while reinforcing its value proposition. Management believes that simpler pricing, paired with stronger merchandising, is making stores easier to navigate, boosting customer engagement and supporting sustainable long-term sales growth.

A major step in this effort was eliminating the standalone Five Beyond section. Instead of placing products priced above $5 in a separate area, the retailer now integrates them into the respective merchandise worlds. For example, a $35 floor mirror is displayed in the Room section rather than a dedicated premium space. Management said this better aligns with how customers shop, improves product visibility and has led to stronger performance for higher-priced merchandise.

The company has also streamlined its pricing architecture while staying true to its value roots. More than 80% of Five Below's assortment remains priced at $5 and below, while products above that level are introduced selectively and must deliver meaningful "wow value" through quality, functionality or trend appeal. Management noted that customers have embraced these offerings because they provide compelling value rather than simply carrying higher prices.

Pricing simplification is supported by broader store enhancements, including improved visual merchandising, stronger in-stock positions and six seasonal "curtain-up" moments that showcase curated product stories. These initiatives are making stores easier and more enjoyable to shop while encouraging customers to explore multiple merchandise categories during each visit.

The strategy is delivering tangible results. In the first quarter of fiscal 2026, Five Below posted a 22.7% comparable sales increase, driven primarily by a 19% rise in transactions, with 15 of its 18 merchandising departments reporting positive comparable sales growth. Five Below expects fiscal 2026 comparable sales growth of 6-8%, reflecting management's confidence that its customer-centric initiatives, including pricing simplification, will continue supporting demand.

ULTA & BBWI’s Pricing Strategy vs. FIVEUlta Beauty, Inc. (ULTA - Free Report) is maintaining a balanced pricing strategy that emphasizes value without sacrificing its premium positioning. As consumers remain increasingly value-focused, Ulta Beauty is leveraging its broad assortment spanning mass and prestige brands, targeted promotions and personalized loyalty rewards to offer options for every budget. Rather than relying on broad discounting, Ulta Beauty is using data-driven offers and competitive pricing across its portfolio to strengthen customer engagement, protect merchandise margins and support long-term profitable growth.

Bath & Body Works, Inc. (BBWI - Free Report) is pursuing a disciplined pricing strategy centered on delivering stronger value through product innovation rather than deeper promotions. Bath & Body Works believes value extends beyond price, emphasizing higher-quality products, clearer consumer benefits and premium fragrance experiences to support pricing power. At the same time, Bath & Body Works is maintaining a promotional cadence similar to last year while focusing on innovation-led pricing, helping improve average unit retail without compromising brand equity or long-term profitability.

FIVE’s Price Performance, Valuation & EstimatesFIVE shares have rallied 44.8% over the past year against the industry’s decline of 12.7%. 

Image Source: Zacks Investment Research

From a valuation standpoint, Five Below is trading at a trailing 12-month price-to-sales ratio of 2.22X, up from the industry average of 1.57X. It has a Value Score of B.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Five Below’s fiscal 2026 earnings implies year-over-year growth of 35.1%, while the same for fiscal 2027 indicates an uptick of 9.9%. Estimates for fiscal 2026 and 2027 have been revised upward by 5 cents and 10 cents, respectively, over the past 30 days.

Image Source: Zacks Investment Research

Five Below currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Macro Bank (BMA - Free Report) : This leading bank in Argentina has a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.4% over the last 60 days.

Macro Bank has a PEG ratio of 0.62 compared with 0.85 for the industry. The company possesses a Growth Score of A.

Five Below, Inc. (FIVE - Free Report) : This specialty retail company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.7% over the last 60 days.

Five Below has a PEG ratio of 1.02 compared with 2.11 for the industry. The company possesses a Growth Score of A.

Dycom Industries, Inc. (DY - Free Report) : This infrastructure services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 18.1% over the last 60 days.

Dycom Industries has a PEG ratio of 0.71 compared with 1.30 for the industry. The company possesses a Growth Score of A.

See the full list of top ranked stocks here.

Learn more about the Growth score and how it is calculated here.

Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Five Below (FIVE - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.

Five Below is one of 187 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Five Below is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for FIVE's full-year earnings has moved 10.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, FIVE has returned 1.7% so far this year. In comparison, Retail-Wholesale companies have returned an average of 1.2%. This means that Five Below is outperforming the sector as a whole this year.

Another stock in the Retail-Wholesale sector, Deckers (DECK - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 4%.

Over the past three months, Deckers' consensus EPS estimate for the current year has increased 2%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Five Below belongs to the Retail - Miscellaneous industry, a group that includes 13 individual stocks and currently sits at #78 in the Zacks Industry Rank. On average, this group has lost an average of 17.3% so far this year, meaning that FIVE is performing better in terms of year-to-date returns.

In contrast, Deckers falls under the Retail - Apparel and Shoes industry. Currently, this industry has 38 stocks and is ranked #76. Since the beginning of the year, the industry has moved -7.2%.

Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Five Below and Deckers as they could maintain their solid performance.

On July 17, the first 200 customers will score a FREE exclusive Neon Squishy Dumpling and enjoy special giveaways, games, prizes, music and fun all day long July 09, 2026 08:00 ET  | Source: Five Below, Inc.

PHILADELPHIA, PA, July 09, 2026 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ: FIVE), the trend-right, extreme-value brand for the kid and the kid in all of us, is celebrating a major milestone: the grand opening of its 2,000th store. To mark the occasion, Five Below will host a grand opening celebration, inviting the whole community to discover the one-of-a-kind shopping experience that fans across the country have come to know and love – the ultimate destination for trends, fun, unique finds and go-to favorites, all at unbeatable value. The store is located at 299 Commerce Avenue in LaGrange, Ga.

Kicking off Friday, July 17, at 9:30am, the fun and festive celebration will feature special giveaways, games, prizes, music and all-day fun for the whole family. As a special thank-you, the first 200 customers through the doors will receive a FREE exclusive Neon Squishy Dumpling – a limited-edition collectible to mark this historical moment.

“Reaching 2,000 stores is an incredible milestone for our brand whose mission is to be the destination for the kid and the kid in all of us,” said Winnie Park, CEO. “We know our unique retail concept has a lot of runway ahead with thousands of new stores across the U.S. And, we are excited to celebrate this moment with the LaGrange community with a fun-filled day of discovery across our store from play to snacks to style and beauty, all at amazing value.”

Shoppers will experience the thrill of Five Below’s unique retail experience where they will discover everything from candy and snacks to party, beauty and style, toys and games, tech, décor and much more. With most items priced $1 to $5, and some extreme-value finds priced beyond $5, Five Below makes it easy to explore amazing new products and say “YES!” to fun without breaking the bank.

In addition, as a brand focused on kids, Five Below is proud to partner with several Boys & Girls Clubs in our metro-Atlanta communities. By transforming these vital kid-safe spaces into vibrant, inspiring environments, Five Below is helping open the door to creativity, fun, and brighter futures.

To learn more about Five Below, find your nearest location, or shop online, please visit fivebelow.com. And be sure to follow along on Instagram, TikTok and Facebook for all the latest updates.

About Five Below
Five Below is a leading growth retailer offering trend-right, extreme value, high-quality products loved by the kid and the kid in all of us. We believe life is better when customers are free to "let go & have fun" in an amazing experience filled with unlimited possibilities. With most items priced between $1 and $5 and some extreme value items priced beyond $5, Five Below makes it easy to say YES! to the newest, coolest stuff across awesome Five Below worlds: Candy, Style, Party, Room, Create, Tech, Sports and New & Now. Founded in 2002 and headquartered in Philadelphia, Pennsylvania, Five Below today has approximately 2,000 stores in 46 states. For more information, please visit www.fivebelow.com or follow @fivebelow on TikTok, Instagram and Facebook.

Media Contact
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Five Below

A month has gone by since the last earnings report for Five Below (FIVE - Free Report) . Shares have lost about 5.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Five Below due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Five Below Q1 Earnings Top Estimates on Strong Traffic and CompsFive Below reported impressive first-quarter fiscal 2026 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Also, net sales and earnings increased year over year, supported by strong comparable sales growth driven by gains in both traffic and average ticket.

More on Five Below’s Q1 ResultsFIVE posted adjusted earnings per share of $2.22 in the fiscal first quarter, which beat the Zacks Consensus Estimate of $1.70. Also, the figure surged 158% from 86 cents in the year-ago quarter.

Net sales were $1,285.6 million, which increased 32.5% year over year from $970.5 million. Also, this metric surpassed the Zacks Consensus Estimate of $1,205 million.

Comparable sales (comps) increased 22.7% year over year, surpassing our estimated growth of 15.6% growth. Comps growth was driven by a 4% increase in ticket and a 19% rise in transactions.

Insight Into Margins & Costs of FIVEAdjusted gross profit grew 46% year over year to $478.6 million from $328.4 million. The adjusted gross margin increased approximately 340 basis points (bps) year over year to 37.2%. The improvement was primarily driven by fixed-cost leverage from strong comparable sales growth, along with distribution efficiencies and a lower shrink accrual, which further supported profitability during the quarter.

Selling, general and administrative (SG&A) costs stood at $324 million. While SG&A costs, as a percentage of net sales, decreased approximately 250 bps to 25.2%. The improvement was primarily driven by strong comparable sales growth, which enabled fixed costs to be spread across a larger revenue base. These benefits were partially offset by higher incentive compensation expenses and increased store labor costs associated with April's physical inventory counts.

Adjusted operating income was $154.8 million, up 160% year over year from $59.6 million. The adjusted operating margin increased approximately 600 bps to 12%.

FIVE Provides Q1 Store UpdateThe company opened 49 net new stores and ended the quarter with 1,970 stores across 46 states. This represents a 7.9% increase in the number of stores from the end of the first quarter of fiscal 2025. The company expects to open approximately 50 new stores in the fiscal second quarter and 150 new stores for fiscal 2026.

Five Below’s Financial Snapshot: Cash & Equity OverviewThe company ended the fiscal first quarter with cash and cash equivalents of $638.9 million and short-term investment securities of $474.4 million. Total shareholders’ equity was $2,312.5 million as of May 02, 2026.

Inventory totaled $813.3 million, increasing approximately 16% year over year, alongside a 10% increase in units and a 7% rise in average inventory per store. Management attributed the inventory build to opportunistic purchasing in a favorable tariff environment and efforts to maintain a consistent flow of products amid a more challenging global supply chain environment.

What to Expect from FIVE in the Future?For the fiscal second quarter of fiscal 2026, the company expects total sales of $1.18 billion to $1.20 billion, supported by comparable sales growth of 7% to 9%. The company expects fiscal second-quarter gross margin improvement to be supported by higher merchandise margins, fixed-cost leverage and a lower shrink accrual. These benefits are expected to be partially offset by higher supply chain and fuel-related transportation costs. Adjusted SG&A is projected to delever slightly due to increased marketing investments and higher store labor expenses.

Adjusted operating margin is expected to improve to 7% at the midpoint, a 160-basis point increase driven by gross margin expansion. The adjusted net income is expected to be in the range of $65 million to $72 million, with adjusted earnings per share (EPS) expected to be between $1.17 and $1.29.

The company increased its full-year outlook following stronger-than-expected first-quarter results and an improved second-quarter sales forecast. Management expects sales of $5.4 billion to $5.48 billion compared with the previously guided range of $5.2 billion to $5.3 billion, and comparable sales growth of 6% to 8% for the year, compared with the previously guided range of 3% to 5%. Adjusted operating margin is projected to expand 170 bps to 11.6% at the midpoint  compared with 10.9% guided previously, driven by gross margin improvement.

Adjusted net income is expected to be in the range of $482 million to $504 million, compared with the previously guided range of $431 million to $459 million. Adjusted EPS is expected to be in the range of $8.65 to $9.05 compared with the previously guided range of $7.74 to $8.25, supported by continued sales and profitability growth. Capital expenditures are expected to be in the range of $230 million to $250 million.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 17% due to these changes.

VGM ScoresCurrently, Five Below has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Five Below has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerFive Below belongs to the Zacks Retail - Miscellaneous industry. Another stock from the same industry, Dick's Sporting Goods (DKS - Free Report) , has gained 8.5% over the past month. More than a month has passed since the company reported results for the quarter ended April 2026.

Dick's reported revenues of $5.16 billion in the last reported quarter, representing a year-over-year change of +62.7%. EPS of $2.90 for the same period compares with $3.37 a year ago.

Dick's is expected to post earnings of $3.80 per share for the current quarter, representing a year-over-year change of -13.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Dick's. Also, the stock has a VGM Score of B.

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, July 2:

DaVita Inc. (DVA - Free Report) : This kidney dialysis company has a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.4% over the last 60 days.

DaVita Inc. has a PEG ratio of 0.73 compared with 2.40 for the industry. The company possesses a Growth Score of B.

Five Below, Inc. (FIVE - Free Report) : This specialty retail company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.1% over the last 60 days.

Five Below has a PEG ratio of 0.96 compared with 1.99 for the industry. The company possesses a Growth Score of A.

Pitney Bowes Inc. (PBI - Free Report) : This shipping and mailing services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.9% over the last 60 days.

Pitney Bowes has a PEG ratio of 0.79 compared with 0.81 for the industry. The company possesses a Growth Score of A.

See the full list of top ranked stocks here.

Learn more about the Growth score and how it is calculated here.

Key Takeaways Five Below's social-first strategy helped drive 22.7% comparable sales growth in fiscal Q1 2026.FIVE shifted media spending toward social platforms, creator content and direct digital engagement.Five Below raised its fiscal 2026 guidance to $5.4-$5.48 billion in sales and 6-8% comparable sales growth. Five Below, Inc. (FIVE - Free Report) is benefiting from increased investment in digital marketing, reflecting its efforts to strengthen customer engagement and broaden brand awareness. During the first quarter of fiscal 2026, management highlighted a social-first strategy that resonated with Gen Alpha, Gen Z and millennial shoppers, contributing to a 22.7% increase in comparable sales and helping drive strong traffic trends across the business.

The company's evolving marketing approach has played an important role in expanding customer reach. Five Below has shifted media spending toward social platforms, creator content and direct digital engagement, allowing it to react more quickly to emerging consumer trends. Management noted that the retailer is increasingly leveraging social listening capabilities to identify popular products and amplify demand through targeted campaigns and in-store activations.

Artificial intelligence ("AI") is also becoming a more meaningful component of Five Below's marketing toolkit. During the first quarter, the company deployed AI-generated content in connected TV advertisements focused on seasonal moments, enabling faster content creation and more relevant messaging. These initiatives have improved engagement with customers while helping Five Below remain agile in responding to changing consumer interests.

The retailer is simultaneously investing in customer relationship initiatives to enhance marketing effectiveness. Five Below continues to build its e-mail database, which is expected to sharpen targeting capabilities and support more personalized communication. Management indicated that expanding this customer file could create opportunities to deepen relationships, improve retention and eventually support broader loyalty initiatives.

The company believes digital marketing investments remain in the early stages but are already delivering encouraging results. Reflecting management’s confidence in its strategy and customer engagement initiatives, Five Below raised its fiscal 2026 outlook and expects net sales of $5.4-$5.48 billion, representing approximately 14% year-over-year growth at the midpoint, along with comparable sales growth of 6-8% for the year.

ULTA & BBWI’s Digital Initiatives vs. FIVEUlta Beauty, Inc. (ULTA - Free Report) is advancing its digital strategy through investments in e-commerce, social commerce and artificial intelligence. The company expanded same-day delivery through Uber Eats, introduced Klarna payment options and launched the TikTok Shop to enhance discovery and engagement.

Ulta Beauty is leveraging AI-powered personalization, loyalty data and its Ulta AI shopping assistant to improve product recommendations and customer experiences. Complementing these efforts, a recent NielsenIQ study commissioned by Ulta Beauty found that 73% of Gen Alpha beauty consumers use personalization tools, underscoring the growing influence of AI in beauty discovery. These initiatives position Ulta Beauty to drive long-term digital growth and strengthen customer relationships.

Bath & Body Works, Inc. (BBWI - Free Report) is accelerating the digital transformation through initiatives to improve customer engagement and expand its reach. The company plans to relaunch its website with a mobile-first design, enhanced storytelling capabilities and a faster checkout experience to reduce friction for shoppers. Bath & Body Works is also seeing early digital gains, including roughly a 10% increase in conversion among new customers, while its growing Amazon presence is helping attract younger and more affluent consumers.

Bath & Body Works is leveraging richer visual content, social engagement and digital channels to strengthen brand discovery and support long-term e-commerce growth.

FIVE’s Price Performance, Valuation & EstimatesFIVE's shares have rallied 36.9% over the past year against the industry’s decline of 9.4%. 

Image Source: Zacks Investment Research

From a valuation standpoint, Five Below is trading at a trailing 12-month price-to-sales ratio of 1.97X, up from the industry average of 1.60X. 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Five Below’s fiscal 2026 earnings implies year-over-year growth of 34.3%, whereas the same for fiscal 2027 indicates an uptick of 9.3%. Estimates for fiscal 2026 and 2027 have been revised upward by 70 cents and 63 cents, respectively, in the past 30 days.

Image Source: Zacks Investment Research

Five Below currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Five Below leverages social listening to identify trends across beauty, candy and toy categories.FIVE posts 23% comparable sales growth, driven by higher transactions and average ticket size.FIVE expands its email database to enhance personalized marketing and deepen customer engagement. Five Below, Inc. (FIVE - Free Report) is driving customer acquisition and loyalty through a customer-centric strategy that blends strong digital engagement with an evolving in-store experience. The company is increasingly leveraging social listening to better understand customer preferences and capitalize on emerging trends. Management highlighted opportunities across several categories, including squishy products, candy, beauty programs and beauty dupes, where customer conversations are helping shape merchandising and engagement strategies.

The company is benefiting from improved customer acquisition through connected TV initiatives and greater marketing agility enabled by AI-generated content. These efforts are helping Five Below engage younger audiences more effectively through the channels they increasingly use. In the first quarter of fiscal 2026, comparable sales increased 22.7%, driven by a 19% rise in transactions and a 4% increase in average ticket size, reflecting strong customer traffic and engagement.

Five Below remains focused on introducing products that deliver meaningful value while satisfying customers’ desire for novelty and fun, rather than simply expanding its assortment. Supported by a new cross-functional go-to-market process, teams are creating impactful launch moments around key seasonal events. The company also strengthened customer engagement through in-store activations, including celebrations of the 30th anniversary of Pokémon on National Pokémon Day across its store network.

Additionally, Five Below made significant progress in expanding its email database during the quarter. This enhanced customer data foundation is expected to improve the precision of social and digital marketing efforts, deepen customer engagement and foster more personalized relationships with consumers. Overall, management believes its investments in customer engagement, social listening and personalized marketing capabilities position the company to deepen customer relationships and support continued traffic growth over time.

The Zacks Rundown for FIVEThe company’s shares have gained 55.7% in the past year against the industry’s 5.7% decline. FIVE currently sports a Zacks Rank #1 (Strong Buy).

Image Source: Zacks Investment Research

From a valuation standpoint, FIVE trades at a forward price-to-earnings ratio of 20.91, higher than the industry’s average of 14.67.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for FIVE’s current and next fiscal year earnings implies a year-over-year rise of 31.8% and 10.4%, respectively.

Image Source: Zacks Investment Research

Other Stocks to ConsiderSome other top-ranked stocks have been discussed below:

Victoria’s Secret & Co. (VSXY - Free Report) operates as a specialty retailer of women's intimate apparel and other apparel and beauty products worldwide. At present, VSXY flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Victoria's Secret’s current fiscal-year sales and earnings suggests growth of 8.8% and 53.7%, respectively, from the year-ago reported numbers. VSXY delivered a trailing four-quarter earnings surprise of 55.1%, on average.

Tapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia, and internationally. At present, TPR flaunts a Zacks Rank of 1.

The Zacks Consensus Estimate for TPR’s current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.

Fossil Group, Inc. (FOSL - Free Report) designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4.9%, while the same for earnings indicates growth of 87.6% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 381.8%, on average.

June 17, 2026 16:42 ET  | Source: Five Below, Inc.

Rodney Lastinger named Chief Retail Officer
Christos Yatrakis named Chief Legal Officer

PHILADELPHIA, PA, June 17, 2026 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ: FIVE), the trend-right, high-quality, extreme-value retailer for the kid and the kid in all of us, today announced the appointments of Rodney Lastinger as Chief Retail Officer and Christos Yatrakis as Chief Legal Officer. Mr. Lastinger will be responsible for leading the operational performance of the Company’s growing network of nearly 2,000 stores and will join Five Below on June 22, 2026. Mr. Yatrakis will oversee the Company's legal function and joined on June 15, 2026. Both executives will report to Kenneth Bull, Chief Operating Officer.

"We are thrilled to welcome Rodney and Christos to the Five Below crew," said Winnie Park, Chief Executive Officer. "Rodney brings exceptional operational leadership and a proven track record of driving results and building high-performing teams across large, multi-unit organizations. His fresh perspective and customer-focused approach will be invaluable as we continue our store expansion and further enhance our store experience.”

Ms. Park continued, “Christos brings deep expertise in corporate governance and public company compliance, as well as broad business acumen and enterprise leadership experience. Both Rodney and Christos share our commitment to putting the customer at the center of everything we do, and I look forward to partnering with them as we continue to unlock our full potential."

Rodney Lastinger

Mr. Lastinger is a seasoned retail executive with extensive experience leading large-scale operations across national and international markets. Most recently, he served as Chief Operating Officer at GNC, where he directed operations across more than 2,200 franchise and corporate stores nationwide, improving comparable sales trends and EBITDA through operational transformation and supply chain optimization. Prior to GNC, Mr. Lastinger served as President, Retail, at Conn's Home Plus, leading all company operations including stores, supply chain, merchandising, in-home sales and service, and real estate. Earlier in his career, Mr. Lastinger spent 18 years at Target Corporation, progressing through roles of increasing responsibility to Senior Vice President, Stores.

"I have long admired Five Below's unique ability to connect with its core customer through trend-right product at exceptional value in a fun store experience," said Mr. Lastinger. "I am excited to join the talented team at Five Below, and I look forward to partnering with the crew to drive operational excellence and deliver outstanding experiences for our customers."

Christos Yatrakis

Mr. Yatrakis is an accomplished legal executive with more than 20 years of experience leading legal functions for global public consumer companies. Most recently, he served as Chief People & Legal Officer at Allbirds, Inc., where he oversaw legal, corporate governance, SEC compliance and people functions for operations spanning more than 20 countries. Prior to Allbirds, Mr. Yatrakis held senior legal and operational roles at Gymshark USA Inc., including General Manager, North America, and at Arrow Electronics, Inc., where he served as Vice President, Legal Affairs.

"Five Below has established itself as a beloved brand with a clear mission and strong culture," said Mr. Yatrakis. "I am honored to join the team and support the company's continued growth by providing strategic legal counsel and building strong partnerships across the organization."

About Five Below:

Five Below is a leading growth retailer offering trend-right, extreme value, high-quality products loved by the kid and the kid in all of us. We believe life is better when customers are free to "let go & have fun" in an amazing experience filled with unlimited possibilities. With most items priced between $1 and $5 and some extreme value items priced beyond $5, Five Below makes it easy to say YES! to the newest, coolest stuff across awesome Five Below worlds: Candy, Style, Party, Room, Create, Tech, Sports and New & Now. Founded in 2002 and headquartered in Philadelphia, Pennsylvania, Five Below today has over 1,900 stores in 46 states. For more information, please visit www.fivebelow.com or follow @fivebelow on TikTok, Instagram and Facebook.

Investor Contact:

Five Below, Inc.
Christiane Pelz
Vice President, Investor Relations
[email protected]

June 16, 2026 16:30 ET  | Source: Five Below, Inc.

PHILADELPHIA, PA, June 16, 2026 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ: FIVE) today announced the election of Robert Lynch as a new independent director to its Board of Directors, effective immediately, bringing the Board to nine members. Mr. Lynch is the Chief Executive Officer of Shake Shack, Inc., a leading fast-casual chain of restaurants, and has served in this role and as a member of its Board of Directors since May 2024.

“We are excited to welcome Rob to our board,” said Mike Devine, Chairman of Five Below. “Rob’s broad experience in leading multi-unit consumer companies will be valuable as we continue to drive growth and execute on the substantial long-term opportunity that exists for Five Below.”

Prior to his current role, Mr. Lynch served as President and Chief Executive Officer of Papa John’s International, Inc. and held multiple positions within Arby’s Restaurant Group, Inc., including as President from August 2017 to August 2019, and at Taco Bell, H.J. Heinz Company and Procter & Gamble. Mr. Lynch also served on the board of directors at Kontoor Brands, Inc. from March 2021 to April 2026.

“I am honored to join the board of Five Below, a retailer I’ve respected for many years,” said Rob Lynch. “I’m impressed with Five Below’s unique value proposition and look forward to working with the board and management team on key strategic initiatives to further strengthen the brand and deepen its connection with customers.”

About Five Below:

Five Below is a leading growth retailer offering trend-right, extreme value, high-quality products loved by the kid and the kid in all of us. We believe life is better when customers are free to “let go & have fun” in an amazing experience filled with unlimited possibilities. With most items priced between $1 and $5 and some extreme value items priced beyond $5, Five Below makes it easy to say YES! to the newest, coolest stuff across awesome Five Below worlds: Candy, Style, Party, Room, Create, Tech, Sports and New & Now. Founded in 2002 and headquartered in Philadelphia, Pennsylvania, Five Below today has over 1,900 stores in 46 states. For more information, please visit www.fivebelow.com or follow @fivebelow on TikTok, Instagram and Facebook.

Investor Contact:
Five Below, Inc.
Christiane Pelz
Vice President, Investor Relations
[email protected]

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Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Five Below (FIVE - Free Report) Five Below, Inc. is a Pennsylvania-based specialty value retailer offering trend-right merchandise priced mostly at $5 and below, with a select range priced above $5. The chain targets pre-teens, teens and value-focused families with an edited assortment that includes certain brands and licensed merchandise.

FIVE is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. FIVE has a Growth Style Score of A, forecasting year-over-year earnings growth of 30.4% for the current fiscal year.

Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.65 to $8.70 per share. FIVE also boasts an average earnings surprise of +70.1%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, FIVE should be on investors' short list.

Five Below, Inc. (FIVE) Q1 2027 Earnings Call Transcript

Live Updates Jun 4, 2026 at 9:16 AM EDT

It pays to be cautious in the market.

“The S&P 500 was up more than 16% over April and May, a magnitude that’s only happened in four other instances since World War II, Deutsche Bank Research found,” as noted by CNBC. “The last time the S&P 500 rose like it is now outside of a recession period was the few months before the 1987 crash.”

There are also other signs of a potential crash.

For example, if we look at the Case Shiller P/E ratio, it currently stands at 42.53 – its second-highest point since its 1999 high of 43.21. That was also right before the dot-com crash.  You can see that chart here.

Markets are wildly mixed this morning.

The S&P 500 is down by 0.36%, or by 27 points. The SPDR S&P 500 ETF (SPY) is down by 0.3%, or by $2.25. The Dow is up by 0.89%, or by 460 points. The Nasdaq is down by 1.15%, or by 353 points. Oil is down by $3.19 at $92.83. Bitcoin is down by $527 at $63,512.

Let’s start with the Dow.

A day after slipping on higher oil prices and yields, the Dow is climbing as investors shift away from the tech sector and instead jump into blue-chip and defensive stocks. Plus, new news of a ceasefire and cooling energy prices are pumping the index.

Meanwhile, the tech-heavy Nasdaq is sinking following an underwhelming report from Broadcom (NASDAQ: AVGO | AVGO Price Prediction), which is down 13% in premarket. Fueling a good deal of downside in the name, CEO Hock Tan did not raise the company’s full-year target of $100 billion in AI chips. For its most recent quarter, the company did post adjusted EPS of $2.44, as compared to estimates of $2.40. Revenue of $22.19 billion was below estimates of $22.27 billion.

Not helping, HSBC analysts flagged a slide in chip prices, coupled with a slowdown in AI spending and rollout, as among their “biggest worries,” as noted by CNBC.

Market Movers: Five Below Plunges $23 Shares of Five Below (NASDAQ: FIVE) are down 10%, or by $23 a share, after solid earnings.

The company’s EPS of $2.22 beat by 43 cents, and revenue of $1.28 billion (up 31.9% year over year) beat by $50 million. It also delivered a significant improvement in profitability. Operating income climbed to $154.2 million from $50.8 million in the same period last year. It even raised its full-year forecast. Unfortunately, some analysts are questioning its valuation.

For example, as noted by Investing.com, “Mizuho noted that investors may question the size of the fiscal 2026 guidance increase, with second-half estimates unchanged. Current sales trends appear strong in the second quarter to date, though management expressed caution about the consumer spending environment.”

Analysts at Mizuho also reiterated an outperform rating on Nvidia (NASDAQ: NVDA), noting that they remain bullish on the optical/networking market.

Citi analysts reiterated a buy rating on Oracle (NYSE: ORCL), raising their price target to $330 from $320. The firm noted, “While investor concerns linger on financing/execution of capacity buildouts, we believe ORCL remains on track to deliver one of the strongest revenue/EPS accelerations in tech as large AI contracts ramp,” as quoted by CNBC.

© mezzotint / Shutterstock.com

FIVE stock is slipping. Watch the price action here.  FIVE was trading at $194.08 Thursday afternoon, down 12.93%, according to data from Benzinga Pro.  

Shares opened at $197.47 and touched an intraday low of $191.17, while volume of 2.8 million shares reflects heavy selling pressure. The two-day combined loss now totals roughly 19%. 

The selloff comes despite what Loop Capital’s Anthony Chukumba pegged as a beat and raise quarter that “blew the proverbial doors off.” 

Five Below posted Q1 revenue of $1.29 billion, well ahead of the $1.22 billion consensus, while adjusted EPS of $2.22 crushed the $1.74 estimate. 

Comparable-store sales surged 22.7%, driven by a 19% jump in transactions and a 4% increase in average ticket.

“Our continued focus on compelling newness at amazing value and great store execution is at the heart of our operating flywheel,” said CEO Winnie Park. 

Buy the Rumor, Sell the News Chukumba reiterated his Buy rating and $250 price target in a note published Wednesday, calling the aftermarket drop “a classic case of ‘buy on the rumor, sell on the news'” and flagging it as an attractive buying opportunity. 

The price target is based on roughly 27.9 times Chukumba’s revised fiscal 2026 EPS estimate of $8.97 — a premium multiple he argues is justified by Five Below’s “stellar recent performance and near-term earnings growth prospects.”

At current levels around $195, FIVE trades at approximately 21x that same estimate — in line with comparable peers, according to Loop Capital.

FIVE Stock Price Activity: Five Below shares were down 12.42% at $195.20 at the time of publication Thursday, according to Benzinga Pro.

Over the past month, FIVE has declined about 15.9% versus a 4.8% rise in the S&P 500 and is up roughly 3% year-to-date compared to the index’s 10.3% gain.

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Five Below, Inc. reported a clear double beat in Q1, as store traffic improved to a highly impressive level and Five Below reports strong margin gains. The report was accompanied by a noteworthy FY2026 guidance raise, as FIVE also expects healthy momentum ahead. After an intriguing post-earnings decline, I estimate FIVE stock to have 27% upside to $250.7.

For the quarter ended April 2026, Five Below (FIVE - Free Report) reported revenue of $1.29 billion, up 32.5% over the same period last year. EPS came in at $2.22, compared to $0.86 in the year-ago quarter.

The reported revenue represents a surprise of +6.7% over the Zacks Consensus Estimate of $1.2 billion. With the consensus EPS estimate being $1.70, the EPS surprise was +30.92%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Five Below performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Comparable Sales: 22.7% versus 14.8% estimated by seven analysts on average.Total stores at end of period: 1,970 compared to the 1,965 average estimate based on five analysts.New Store Openings: 49 compared to the 44 average estimate based on four analysts.Average net sales per store: $0.70 versus the four-analyst average estimate of $1.13.View all Key Company Metrics for Five Below here>>>

Shares of Five Below have returned -4.8% over the past month versus the Zacks S&P 500 composite's +4.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Five Below delivered robust Q1 2026 results, with net sales up 32.5% and comps up 22.7%, driven by strong transaction growth. FIVE's turnaround is now scaling, evidenced by broad-based traffic gains, improved margins, and effective marketing leveraging social media trends. Despite temporary Q1 tailwinds, I see the current ~21x NTM P/E as undervaluing FIVE's sustainable earnings growth potential.

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Our proprietary system currently recommends Five Below (FIVE - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

While there are numerous reasons why the stock of this discount retailer is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Five Below is 7.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 21.6% this year, crushing the industry average, which calls for EPS growth of 4%.

Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for Five Below is 26.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 4%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 24.5% over the past 3-5 years versus the industry average of 5.1%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Five Below. The Zacks Consensus Estimate for the current year has surged 5.6% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Five Below a Zacks Rank #2 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Five Below well for outperformance, so growth investors may want to bet on it.

Five Below (FIVE - Free Report) has been beaten down lately with too much selling pressure. While the stock has lost 10.4% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.

We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.

RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.

Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.

So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.

However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.

Why a Trend Reversal is Due for FIVEThe heavy selling of FIVE shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 28.99. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.

This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering FIVE in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 10.2% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.

Moreover, FIVE currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Five Below (FIVE 1.92%) just delivered one of its strongest quarters in years, with same-store sales (SSS) up 23%, fueled by a 19% spike in traffic. Gross margins widened by nearly four percentage points, and earnings per share (EPS) more than doubled year over year.

By any measure, it was a blowout quarter that further legitimizes CEO Winnie Park's "social-first" marketing approach. Yet the stock fell roughly 14% following the news and hasn't recovered.

The company's execution has been impressive, but management's message reinforced investors' concerns about the broader economy. On the earnings call, management warned of "growing macro challenges and an increasingly cautious consumer," citing rising gas prices and persistent inflation.

Image source: Getty Images.

After notching 20%-plus SSS growth in the first quarter, management raised full-year guidance for EPS growth from 20% to 33%, but maintained its previous SSS growth projections for the back half of the year.

There's nothing squishy about its social media marketing approach Five Below's recent results are the product of a strategic overhaul led by the new CEO. There have been several changes, but the one having an outsize effect is its marketing focus on social media, creator content, and viral trends.

This new approach has rapidly grown the rate of new customer acquisition and traffic from brand loyalists. The Squishy Dumpling "event," where the company used social media to create scarcity and drive foot traffic for a new kids' trend, had a meaningful effect on results this quarter and will be a lever management will continue to pull moving forward.

The company also changed how it sells products. The separate "Five Beyond" section, which held higher-priced items, was recently eliminated. Meanwhile, the company has rolled out higher price points on select items, which are now integrated into the rest of the store. This move has lifted the average ticket size while keeping 80% of the store's merchandise at $5.00 or below.

Despite the business momentum, the market is focused on the road ahead. Five Below's core demographic of kids, teens, and their parents is sensitive to economic pressure. If inflation continues to weigh on discretionary spending, even five-dollar toys are at risk.

An off-price model with room to run For long-term investors, the dual growth story is compelling. The retailer's current footprint includes 1,970 stores, with a long-term target of more than 3,500 locations.

The store-level economics are attractive. New stores bring in $2 million in sales in their first year, on average, with a payback period of about one year on the initial investment. Management plans to open 150 net new locations this year.

A strong balance sheet supports this expansion. The company ended the last fiscal year with $1.1 billion in net cash and no debt. It also generated $412 million in free cash flow (FCF) last year, a jump from $107 million in the prior year as it lapped heavy investments in technology and distribution centers.

Today's Change

(

-1.92

%) $

-3.88

Current Price

$

198.09

This financial flexibility allows the company to self-fund its growth plans and navigate any near-term economic stress. At roughly 21 times this year's earnings, I think the stock is worth buying, but I'd keep some powder dry in case volatility picks up as the year progresses.