For Immediate Release
Chicago, IL – April 28, 2026 – Zacks Equity Research shares Five Below FIVE as the Bull of the Day and The Campbell's Company CPB as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NIKE, Inc. NKE, adidas AG ADDYY and lululemon athletica inc. LULU.
Here is a synopsis of all five stocks:
Bull of the Day:
Five Below is a specialty value chain retailer that offers a wide range of premium-quality, trendy merchandise typically priced at $5 or less. The company primarily targets teenage and pre-teen shoppers with its products, which include certain brands and licensed merchandise.
The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with bullish EPS revisions present across the board.
Five Below Soars
Five Below shares have seen a great 2026 so far, up nearly 25% and widely outperforming relative to the S&P 500. Quarterly results have helped lead the surge, with the stock seeing a positive post-earnings reaction following its latest set of better-than-expected quarterly results.
The retailer posted a double-beat relative to our consensus expectations in the latest quarterly release, with net sales increasing nearly 25% alongside a 24% jump in adjusted EPS. The YoY sales growth rate was the highest we've seen from the company in years, with its gross margin also seeing nice improvement over recent periods. The strong sales growth, paired with an improving profitability picture, helps explain the bullish EPS revisions, driving the strong share performance overall.
Please note that the chart below tracks margins on a trailing twelve-month basis.
The valuation picture here isn't overly rich relative to its history, with the current 28.3X forward 12-month earnings multiple a hair beneath the five-year median and nowhere near the steep five-year highs of 46.2X. Earnings are forecasted to grow 20% in its current fiscal year, with estimates for the upcoming year suggesting a further 13.5% improvement.
The stock has been a great example of the Zacks Rank in action, as shown below. Shares have held the #1 (Strong Buy) rating all year long.
Bottom Line
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The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Five Below would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
The Campbell's Company, together with its subsidiaries, is a worldwide manufacturer and marketer of high-quality, branded convenience food products.
The stock is currently a Zacks Rank #5 (Strong Sell), with EPS revisions remaining bearish across the board.
CPB Shares Tumble
CPB shares have continued to see weak action in 2026, down roughly 26% and widely underperforming relative to the S&P 500. Quarterly results have largely been disappointing as of late, with shares facing pressure following its latest earnings release.
CPB fell short of the latest Zacks Consensus EPS estimate by more than 10%, with sales also coming in 1.6% lower than expected. Concerning growth, sales fell by nearly 5% YoY, whereas earnings were down 31%. Earnings growth has been weak for the company over the last several years, as shown below.
CPB also lowered its current-year outlook following the above-mentioned period, helping explain some of the downward revisions we've seen over the past months. The company does remain confident in a potential turnaround, though, looking to mitigate recent cost headwinds while also leaning into new product innovation.
Bottom Line
Negative earnings estimate revisions stemming from a guidance cut paint a challenging picture for the company's shares in the near term.
The Campbell's Company is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company's earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
Is NIKE's "Win Now" Strategy Finally Turning the Swoosh Around?
NIKE, Inc.'s "Win Now" strategy marks a decisive effort to restore growth momentum and reinforce its leadership in the global athleticwear market. After navigating uneven demand and elevated inventories, the company has shifted its focus toward rebuilding marketplace health and strengthening connections with core consumers. Management's renewed emphasis on sport-led storytelling and disciplined execution signals a strategic reset aimed at stabilizing performance and laying the groundwork for sustained recovery.
Central to the "Win Now" framework is NIKE's effort to rebalance its distribution model by strengthening wholesale partnerships while refining its direct-to-consumer approach. The company is prioritizing fewer, scalable product franchises, improving assortments and restoring shelf presence across key retail channels. This disciplined portfolio management is designed to enhance sell-through rates, improve product visibility and reinforce NIKE's brand authority across major performance categories such as running, basketball and global football.
At the same time, NIKE continues to advance digital capabilities and operational discipline to support long-term profitability. Investments in demand sensing, inventory management and marketplace analytics are helping align supply with consumer demand, while ongoing inventory cleanup and cost controls aim to stabilize margins. Although near-term pressures from promotions, tariffs and uneven regional demand remain, the "Win Now" strategy reflects a structured path toward strengthening fundamentals and restoring growth consistency over time.
NKE's Competition in the Global Arena
adidas AG and lululemon athletica inc. are NKE's key competitors in the global market.
adidas is a global sportswear company engaged in the design, development and marketing of athletic footwear, apparel and accessories across performance and lifestyle categories. The company operates through a diversified portfolio that includes core performance segments such as football, running and training, alongside lifestyle lines like Originals. With a strong international presence spanning Europe, North America, Greater China and emerging markets, adidas continues to strengthen brand visibility through product innovation, collaborations and an expanding direct-to-consumer and digital ecosystem.
lululemon is a premium athletic apparel company focused on designing and retailing technical apparel, footwear and accessories inspired by yoga, running, training and everyday movement. The company targets health-conscious and lifestyle-driven consumers through performance-driven products known for quality, comfort and innovation. lululemon operates through a strong direct-to-consumer model supported by company-operated stores and e-commerce platforms, while continuing to expand into men's wear, footwear and international markets to broaden its growth opportunities.
NKE's Price Performance, Valuation & Estimates
Shares of NIKE have lost 28.2% in the past three months compared with the industry's decline of 24.2%.
From a valuation standpoint, NKE trades at a forward 12-month price-to-earnings ratio of 23.63X compared with the industry's average of 20.91X.
The Zacks Consensus Estimate for NKE's fiscal 2026 earnings implies a year-over-year decline of 29.6%, while that for fiscal 2027 indicates growth of 27.2%. The company's EPS estimate for fiscal 2026 and 2027 has moved downward in the past 30 days.
NIKE stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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NIKE, Inc. (NKE): Free Stock Analysis Report
The Campbell's Company (CPB): Free Stock Analysis Report
lululemon athletica inc. (LULU): Free Stock Analysis Report
Adidas AG (ADDYY): Free Stock Analysis Report
Five Below, Inc. (FIVE): Free Stock Analysis Report
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