Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence through daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, aiding investors in selecting securities likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales, appealing to value investors [4] Growth Score - The Growth Score assesses a company's financial health and future growth potential by analyzing earnings, sales, and cash flow [5] Momentum Score - The Momentum Score identifies optimal entry points for stocks based on price trends and earnings estimate changes [6] VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [6] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in portfolio creation [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] Stock to Watch: Five Below - Five Below, Inc. is a specialty retailer targeting teenagers with products priced at $5 or below, operating 1,858 stores across 44 states as of August 2, 2025 [11] - The company has a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong investment potential [12] - Five Below's forward P/E ratio is 29.45, and it has seen an upward revision in earnings estimates, with a consensus estimate of $5.10 per share for fiscal 2026 [12][13]

Core Insights - Five Below is positioning itself as a go-to destination for affordable holiday gifts, emphasizing products priced at $5 or below, appealing to families and children [1][2][5] Product Offerings - The holiday assortment includes a wide range of gifts such as toys, games, cozy apparel, and festive décor, featuring popular brands like LEGO, Disney, and Pokémon [2][5] - Five Below is promoting unique stocking stuffers and candy options, with items starting at just $1, enhancing the holiday shopping experience [5] Community Engagement - The company is partnering with the U.S. Marine Corps and Toys for Tots for the 16th consecutive year, encouraging customers to donate during checkout to support children in need [3] Employment Initiatives - Five Below is actively hiring over 25,000 seasonal crew members to meet the increased demand during the holiday season, with applications available both in-store and online [4] Company Overview - Founded in 2002 and headquartered in Philadelphia, Five Below operates over 1,900 stores across 46 states, focusing on providing trend-right, high-quality products at extreme value [6]

Core Viewpoint - Rosen Law Firm is investigating potential breaches of fiduciary duties by the directors and officers of Five Below, Inc. [1] Group 1 - The investigation is focused on the actions of the directors and officers of Five Below, Inc. [1] - Shareholders of Five Below are encouraged to visit the law firm's website for more information regarding the investigation [1] - Contact information for Phillip Kim of Rosen Law Firm is provided for shareholders seeking further details [1]

Group 1: Corning (GLW) - Corning has developed advanced glass technologies used across multiple markets and holds a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Corning's current year earnings has increased by 1.6% over the last 60 days [1] - Corning's shares have gained 44.8% over the last three months, significantly outperforming the S&P 500's gain of 8.4%, and it possesses a Momentum Score of A [2] Group 2: Heritage Commerce Corp (HTBK) - Heritage Commerce Corp is a bank holding company offering a variety of commercial loans and holds a Zacks Rank 1 [3] - The Zacks Consensus Estimate for Heritage Commerce's current year earnings has increased by 4.9% over the last 60 days [3] - Heritage Commerce's shares have gained 13.8% over the last three months, also outperforming the S&P 500's gain of 8.4%, and it possesses a Momentum Score of A [4] Group 3: Five Below (FIVE) - Five Below is a specialty value chain retailer providing a range of merchandise priced at $5 or below and holds a Zacks Rank 1 [4] - The Zacks Consensus Estimate for Five Below's current year earnings has increased by 2.6% over the last 60 days [4] - Five Below's shares have gained 16.3% over the last three months, again outperforming the S&P 500's gain of 8.4%, and it possesses a Momentum Score of B [5]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, providing additional stock ratings based on value, growth, and momentum [2] Zacks Style Scores - Each stock is rated from A to F based on value, growth, and momentum, with A being the highest score indicating better chances of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [3] - The Growth Score assesses a company's financial health and future outlook through projected earnings and sales [4] - The Momentum Score evaluates stocks based on price trends and earnings estimate changes to identify favorable buying opportunities [5] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth potential, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] Company Spotlight: Five Below - Five Below, Inc. is a specialty retailer targeting teenagers with products priced at $5 or below, operating 1,858 stores across 44 states as of August 2, 2025 [11] - The company has a Zacks Rank of 1 (Strong Buy) and a VGM Score of B, indicating strong growth potential [12] - Five Below is projected to have a year-over-year earnings growth of 1.2% for the current fiscal year, with upward revisions in earnings estimates [12][13]

Core Insights - Five Below (FIVE) is currently performing well in the Retail-Wholesale sector, with a year-to-date return of 53.9%, significantly outperforming the sector average of 7.2% [4] - The Zacks Rank for Five Below is 1 (Strong Buy), indicating a positive earnings outlook and strong analyst sentiment [3] - The consensus estimate for Five Below's full-year earnings has increased by 9% over the past 90 days, reflecting improving analyst sentiment [4] Company Performance - Five Below belongs to the Retail - Miscellaneous industry, which has an average year-to-date return of 3.3%, further highlighting Five Below's strong performance [6] - In comparison, another Retail-Wholesale stock, Zumiez (ZUMZ), has returned 16.1% year-to-date, with a Zacks Rank of 1 (Strong Buy) and a 103.2% increase in EPS estimates over the past three months [5] Industry Context - The Retail-Wholesale group includes 195 companies and is currently ranked 12 in the Zacks Sector Rank, indicating a relatively strong position within the broader market [2] - The Retail - Apparel and Shoes industry, to which Zumiez belongs, has underperformed with a year-to-date decline of 13.9% [6]

Upgrades - Wells Fargo upgraded Glaukos (GKOS) to Overweight from Equal Weight with a price target of $120, up from $92, highlighting the potential of Epioxa as a significant growth driver [2] - RBC Capital upgraded Honeywell (HON) to Outperform from Sector Perform with a price target of $253, up from $235, citing a solid Q3 and the start of a breakup catalyst-rich phase [3] - Truist upgraded Booking Holdings (BKNG) to Buy from Hold with a price target of $5,750, up from $5,630, based on Asia's long-term travel outlook and steady global GDP growth [3] - JPMorgan upgraded Five Below (FIVE) to Overweight from Neutral with a price target of $186, up from $154, anticipating multi-year earnings growth supported by unit growth expansion [4] - Guggenheim upgraded Microsoft (MSFT) to Buy from Neutral with a price target of $586, believing the company will benefit from the artificial intelligence sector [5] Downgrades - Keefe Bruyette downgraded Berkshire Hathaway (BRK.A) to Underperform from Market Perform with a price target of $7,000, down from $735,000, due to concerns over Geico's underwriting margin and other economic pressures [5] - Morgan Stanley downgraded Harley-Davidson (HOG) to Underweight from Equal Weight with a price target of $25, down from $27, indicating a 10% downside potential [5] - RBC Capital downgraded Roper Technologies (ROP) to Sector Perform from Outperform with a price target of $539, down from $644, citing limited relative upside [5] - Jefferies downgraded Keysight Technologies (KEYS) to Hold from Buy with a price target of $180, down from $181, noting that the stock's valuation reflects its growth potential [5] - Williams Trading downgraded Wolverine World Wide (WWW) to Hold from Buy with a price target of $27, down from $30, expecting a deceleration in Saucony's sales growth [5]

Group 1 - Top Wall Street analysts have revised their outlook on several prominent companies, indicating a shift in market sentiment [1] - The article suggests that investors should consider the stock of FIVE, highlighting the opinions of analysts regarding its potential [1]

Company Performance - Five Below (FIVE) shares have increased by 1.5% over the past month and reached a new 52-week high of $159.93, with a year-to-date gain of 48.8% compared to 5.9% for the Zacks Retail-Wholesale sector and 4.4% for the Zacks Retail - Miscellaneous industry [1] - The company has consistently exceeded earnings expectations, reporting EPS of $0.81 against a consensus estimate of $0.61 in its last earnings report on August 27, 2025, and beating revenue estimates by 2.96% [2] Financial Projections - For the current fiscal year, Five Below is projected to achieve earnings of $5.02 per share on revenues of $4.49 billion, reflecting a -0.4% change in EPS and a 15.75% increase in revenues [3] - In the next fiscal year, earnings are expected to rise to $5.45 per share on revenues of $4.92 billion, indicating year-over-year changes of 8.57% and 9.74%, respectively [3] Valuation Metrics - Five Below's current trading metrics show a P/E ratio of 31.1X for the current fiscal year, which is above the peer industry average of 15.7X, and a trailing cash flow basis of 19.3X compared to the peer group's average of 8.1X [7] - The stock has a PEG ratio of 2.28, which does not place it among the top value stocks [7] Zacks Rank and Style Scores - Five Below holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, which suggests potential for further price appreciation [8] - The company has a Value Score of C, a Growth Score of A, and a Momentum Score of D, resulting in a combined VGM Score of B [6] Industry Comparison - In comparison to industry peers, Petco Health and Wellness Company, Inc. (WOOF) has a Zacks Rank of 1 (Strong Buy) and shows strong earnings performance, beating consensus estimates by 700% [9][10] - The Retail - Miscellaneous industry is performing well, ranking in the top 16% of all industries, indicating favorable conditions for both Five Below and Petco [11]

Core Insights - Five Below is expanding its store presence by entering the Pacific Northwest region of the U.S. with eight new stores opening in November [3][7] - The company reported a net sales growth of over 23% year over year, exceeding $1 billion, with comparable store sales increasing over 12% [4] - Five Below plans to open approximately 150 net new stores in fiscal 2025, projecting net sales between $4.44 billion and $4.52 billion [4] Company Developments - Under the leadership of CEO Winnie Park, who assumed the role in December, Five Below has made significant changes to its executive team, including new appointments for chief merchandising officer and chief financial officer [5] - The CEO expressed satisfaction with the store openings this year and highlighted the potential for further expansion in new markets, particularly in the Pacific Northwest [6] Store Expansion Details - The new stores in the Pacific Northwest will host grand opening events on November 8, featuring giveaways and exclusive deals, with the first 100 customers receiving a $10 gift card [7] - Locations for the new stores will include malls and neighborhood shopping centers, some of which are former Party City locations, as Five Below was a top bidder for Party City's store leases after its bankruptcy [7]