FIVE

Stock markets declined following a higher-than-expected CPI inflation report. The article highlights three stocks with Zacks Rank #1 buy ratings: Petco Health and Wellness (WOOF), Five Below (FIVE), and Oscar Health (OSCR), all showing strong earnings estimate increases and favorable PEG ratios compared to their respective industry averages.

Zacks highlights three stocks with Rank #1 buy ratings and strong growth prospects: Petco Health and Wellness (WOOF) with 26.3% earnings estimate increase, Five Below (FIVE) with 15.2% earnings growth, and Oscar Health (OSCR) with 18.8% earnings growth. All three companies feature attractive PEG ratios and strong growth scores.

Zacks Premium offers investment research services including the Zacks Rank stock-rating system and Style Scores to help investors identify high-performing stocks. The Zacks Rank #1 (Strong Buy) stocks have averaged +23.86% annual returns since 1988, outperforming the S&P 500. Five Below (FIVE) is highlighted as a Strong Buy with strong growth prospects and positive analyst revisions.

Zacks highlights three stocks with Rank #1 (Strong Buy) ratings and strong growth prospects: Petco Health and Wellness (WOOF) with 26.3% earnings estimate increase, Five Below (FIVE) with 15.2% earnings increase, and Oscar Health (OSCR) with 18.8% earnings increase. All three companies feature attractive PEG ratios and strong growth scores.

Five Below (FIVE) posted a double-beat in its latest quarterly earnings with revenues up 23% and earnings up 110% YoY. The company raised FY26 guidance for the second consecutive quarter, with comparable store sales growing 14% and 52 new stores opened. FIVE maintains a Zacks Rank #1 (Strong Buy) with forecasted 60% earnings growth and 20% sales growth in the current fiscal year.

Zacks highlights three stocks with Rank #1 (Strong Buy) ratings and strong growth potential: Petco Health and Wellness (WOOF) with 26.3% earnings estimate increase, Five Below (FIVE) with 15.2% earnings increase, and Oscar Health (OSCR) with 55.1% earnings increase. All three companies feature favorable PEG ratios and strong growth scores.

Zacks highlights three stocks with Rank #1 (Strong Buy) ratings and strong growth prospects: Petco Health and Wellness (WOOF) with 26.3% earnings estimate increase, Five Below (FIVE) with 15.2% earnings growth, and Oscar Health (OSCR) with 63.4% earnings estimate increase over the last 60 days.

Five Below (FIVE) is highlighted as a compelling growth stock investment due to its exceptional earnings growth of 57.6% (vs. 8.5% industry average), strong cash flow growth of 26.2% (vs. 6.9% industry average), and positive earnings estimate revisions with a 14.4% surge over the past month. The company earned a Growth Score of B and Zacks Rank #1, positioning it as a potential outperformer for growth investors.

Five Below reported strong Q2 fiscal 2026 results, beating earnings and sales estimates with 14.1% comparable sales growth and margin expansion. The company raised its full-year 2026 outlook for sales and earnings.

Despite these positive results, the stock has declined 7.8% since the earnings report. Analyst estimates have trended upward 29.64% following the earnings, and the company received a Zacks Rank #1 (Strong Buy) rating.

Americans spent $297 million on squishy toys in the first half of 2026, four times the previous year's spending, suggesting a new 'lipstick indicator' for economic stress. As consumer sentiment hits record lows with expensive housing, groceries, and borrowing costs, consumers are shifting to affordable small luxuries like $6 squishy dumplings rather than cutting spending entirely. While the craze may simply be a passing fad, it reflects how people seek affordable happiness during financial uncertainty.

Retail sales jumped 0.8% in September, exceeding expectations of 0.3%, demonstrating consumer resilience despite inflationary pressures. Four retail stocks with strong online presence and solid earnings growth prospects are highlighted: Abercrombie & Fitch (15.8% expected growth), Casey's General Stores (11.9%), Five Below (57.6%), and Kohl's Corporation (29.6%).

Domino's Pizza reported Q3 2026 earnings of $4.60 per share, beating estimates by 6.2%, with revenues of $1.19 billion topping consensus. Supply chain revenues grew 7.1% to $746.2 million driven by higher order volumes and pricing.

However, same-store sales growth slowed significantly, with U.S. franchise comps rising just 0.3% versus 5.3% year-ago, while international comps grew only 0.2%. The company added 175 net stores globally and maintained capital return programs through dividends and share buybacks.

Zacks Equity Research designated Five Below as Bull of the Day with a Zacks Rank #1 (Strong Buy) rating, citing strong earnings beats, 23% revenue growth, and back-to-back guidance raises. DICK's Sporting Goods was named Bear of the Day with a Zacks Rank #5 (Strong Sell) rating after missing earnings estimates, lowering FY26 guidance, and experiencing weakness at Foot Locker. The article also analyzes Rivian and Lucid, both holding Zacks Rank #3 (Hold), with Rivian showing stronger delivery momentum while Lucid struggles with declining sales and deeply negative margins.