Five Below (FIVE) is a Top-Ranked Growth Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and enhance their confidence in stock market investments [1][2] Zacks Style Scores - Zacks Style Scores are indicators designed to assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score evaluates a company's financial health and future outlook through projected earnings and sales [5] - The Momentum Score capitalizes on price trends and earnings outlook changes to identify optimal investment times [6] - The VGM Score combines all three styles, providing a comprehensive assessment of stocks based on value, growth, and momentum [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in portfolio creation, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down their choices [9] - For optimal returns, stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended [10] Stock Highlight: Five Below, Inc. - Five Below 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 [12] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong growth potential with a forecasted earnings growth of 1.2% for the current fiscal year [13] - Five Below has seen an upward revision in earnings estimates, with the Zacks Consensus Estimate increasing by $0.08 to $5.10 per share, and an average earnings surprise of +62.1% [13][14]