Why Five Below (FIVE) is a Top Growth Stock for the Long-Term

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]