Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Five Below (FIVE) 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), 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.
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This article originally published on Zacks Investment Research (zacks.com).