Dollar Tree, Inc. operates retail discount stores. The company operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $ 1.25. It provides consumable merchandise, which includes everyday consumables, such as household paper and chemicals, food, candy, health, personal care products, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, arts and crafts supplies, and other items; and seasonal goods that include Christmas, Easter, Halloween, and Valentine's Day merchandise. It operates stores under the Dollar Tree and Dollar Tree Canada brands, as well as distribution centers in the United States and Canada. The Family Dollar segment operates general merchandise retail discount stores that offer consumable merchandise, which comprise food and beverages, tobacco, health and personal care, household chemicals, paper products, hardware and automotive supplies, diapers, batteries, and pet food and supplies; and home products, including housewares, home décor, and giftware, as well as domestics, such as comforters, sheets, and towels. It also provides apparel and accessories merchandise comprising clothing, fashion accessories, and shoes; and seasonal and electronics merchandise that include Christmas, Easter, Halloween, and Valentine's Day merchandise, as well as personal electronics, which comprise pre-paid cellular phones and services, stationery and school supplies, and toys. Dollar Tree, Inc. was founded in 1986 and is based in Chesapeake, Virginia.

Dollar Tree looks like a company with strong operating profitability, but with a valuation balance that is clearly not the cheapest. TTM revenue of $4.98 billion and profitability metrics are generally solid, while EPS of 1.74 and ROE of 35.89% are well above the industry median, confirming high capital efficiency. ROA of 9.47% and ROI of 20.95% also look strong and point to effective use of assets and invested capital. Gross profit margin of 36.71% and operating margin of 8.82% are at or above the industry level, and their year-over-year trend is generally moderately positive. At the same time, P/S of 1.25 and especially P/B of 6.68 are noticeably above industry benchmarks, which limits the potential for further re-rating and makes the stock less attractive on valuation multiples. P/FCF of 18.63 no longer looks cheap, although it is not extreme, while P/E of 18.99 is rather neutral and close to the sector average. Liquidity remains a weak point: the quick ratio of 0.39 is well below normal, and the current ratio of 1.16 is only slightly above 1, indicating a limited short-term cushion. Debt burden is also higher than comfortable for the sector: debt/equity of 0.84 and long-term debt of $2.43 billion, combined with notable sensitivity to working capital, add caution. On the other hand, cash on hand of $1.01 billion and the growth in the cash position compared with previous periods support financial flexibility. Shareholders’ equity of $3.51 billion and net worth of 19.17 indicate a stable base, although equity momentum does not appear to be accelerating. There is no dividend, so investors do not receive additional support in the form of cash yield. Overall, the fundamentals justify a moderately cautious view: the business is high-quality and profitable, but the valuation already reflects much of that, while weak liquidity and elevated leverage limit upside.

Dollar Tree, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно вырос. Рынок на стороне быков.

Strong index, significantly up. The market is on the bulls' side.

Сильный индекс, значительно вырос. Приток средств в лонги на высоком уровне.

Strong index, significantly up. Inflow of funds into longs at a high level.

DLTR demonstrates strong profitability and high returns on capital, but expensive valuation multiples and weak liquidity limit revaluation potential.

Target Corporation TGT is advancing its digital transformation through investments in artificial intelligence (AI), advanced analytics and technology. The company is expanding the use of AI-enabled tools to support merchandising decisions, improve operational planning and enhance the shopping experience. Management views these investments as a key part of its refreshed strategy to strengthen retail execution across stores and digital channels.
AI-enabled tools are helping Target's merchandising teams make faster, more informed decisions. The company is leveraging advanced analytics to refine assortment planning, optimize merchandising execution and respond more effectively to changing consumer preferences. These capabilities are streamlining workflows and supporting the company's focus on delivering compelling assortments across its priority merchandise categories.
Technology investments are also strengthening Target's supply chain and store operations. The retailer is enhancing data connectivity across its distribution network to improve inventory visibility and product availability. During the fiscal first quarter of 2026, these efforts contributed to stronger in-stock performance despite higher-than-expected sales, while strengthening coordination across merchandising, distribution and store operations.
Target continues to expand its digital and omnichannel ecosystem, with stores serving as the foundation of its fulfillment network. In the fiscal first quarter, digitally originated comparable sales increased 8.9%, while same-day delivery grew more than 27%, driven by Target Circle 360. Digital represented 20.3% of merchandise sales, up from 19.8% a year ago and stores fulfilled 97.6% of total merchandise sales. Management also highlighted nearly 60% growth in first-quarter gross merchandise value ("GMV") at Target Plus, reflecting strong marketplace momentum and expanding revenue opportunities.
The company's technology investments are also enhancing the in-store experience. During the fiscal first quarter, several guest satisfaction metrics reached three-year highs, including wait times, product availability, store cleanliness and team interactions. As Target continues investing in AI-enabled tools, digital capabilities and operational improvements, it is building a more connected retail platform that supports efficient execution and a seamless omnichannel shopping experience.
Target’s Price Performance, Valuation & Estimates
TGT stock has gained 30.6% over the past six months compared with the industry’s 2% growth.
Image Source: Zacks Investment Research
Target’s forward 12-month price-to-earnings ratio of 16.09 reflects a lower valuation than the industry’s average of 30.81. TGT has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TGT’s fiscal 2026 earnings implies year-over-year growth of 10.3%, while the same for fiscal 2027 indicates growth of 6.4%. Earnings estimates for fiscal 2026 and 2027 have increased by 5 cents each, respectively, over the past 60 days.
Image Source: Zacks Investment Research
Target currently carries a Zacks Rank #2 (Buy).
Other Key Picks
Some other top-ranked stocks in the retail space are Dollar Tree Inc. DLTR, Ross Stores Inc. ROST and The TJX Companies, Inc. TJX.
Dollar Tree is an operator of discount variety stores offering a broad assortment of everyday consumables and discretionary merchandise. The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Zacks Consensus Estimate for Dollar Tree’s current fiscal-year sales and earnings indicates growth of 6.5% and 21.7%, respectively, from the year-ago reported figures. DLTR delivered a trailing four-quarter earnings surprise of 32.1%, on average.
Ross Stores operates as an off-price retailer of apparel and home accessories. It presently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales implies growth of 17.1% and 10.1%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 10.2%.
TJX Companies is a leading off-price retailer of apparel and home fashions. It also has a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for TJX Companies’ current fiscal-year earnings and sales implies growth of 9.3% and 5.9%, respectively, from the year-ago actuals. TJX delivered a trailing four-quarter average earnings surprise of 8.8%.
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Target's AI & Digital Investments Strengthen Retail Operations

Burlington Stores, Inc. BURL is making steady progress with its smaller store format strategy, an initiative aimed at improving sales productivity while driving long-term profitability. The company continues to optimize its store portfolio through new store openings, relocations and downsizing projects, creating a more productive and efficient retail footprint. These initiatives are enhancing Burlington's competitive position and supporting sustainable growth across its off-price business.
Burlington's relocation and downsizing programs are delivering solid returns. Relocated stores typically generate a 5% to 10% sales lift by moving to higher-traffic shopping centers with stronger co-tenancy. The company is resizing older stores where the locations remain attractive but the selling space is larger than required. In many cases, Burlington reduces store size by roughly half, lowering occupancy costs by about 200 basis points while maintaining an engaging shopping experience.
The strategy has significantly improved store productivity over the past several years. Sales per selling square foot have increased to approximately $350 from about $220 in 2019, representing a 55% improvement. Management attributes this gain to a combination of smaller, more productive stores, stronger merchandising execution and better utilization of selling space. As more stores are relocated or downsized, Burlington expects additional occupancy cost leverage and improved operating efficiency.
The company is accelerating this transformation through continued investment in its store network. Burlington opened 40 new stores in the first quarter of fiscal 2026 and expects to add 115 net new stores in fiscal 2026. By the end of 2028, the retailer expects to operate more than 1,500 stores, with over 80% of its fleet having been opened, relocated or downsized since 2019. The company expects to complete its Store Experience 2.0 rollout by the end of this year, making stores easier to shop and more appealing to customers.
Burlington's focus on smaller, more productive stores complements its broader off-price strategy by improving efficiency without compromising customer value. Reflecting confidence in its execution, the company raised its fiscal 2026 outlook and expects total sales growth of 9% to 11%, comparable sales growth of 2% to 4% and adjusted earnings per share of $11.45 to $11.80. Management remains optimistic about the remainder of the year, supported by healthy customer demand, ample off-price merchandise availability and continued progress across its store optimization initiatives.
Burlington’s Price Performance, Valuation & Estimates
BURL stock has gained 17.4% over the past six months compared with the industry’s 2.7% growth.
Burlington’s trailing 12-month price-to-sales ratio of 1.90X indicates a lower valuation compared with the industry’s average of 1.98X. BURL carries a Value Score of B.
The Zacks Consensus Estimate for Burlington’s current fiscal-year sales and earnings per share implies year-over-year growth of 10.8% and 20%, respectively. Next fiscal-year sales and earnings per share imply year-over-year growth of 8.8% and 15.4%, respectively. Earnings estimates for the current and next fiscal years have been revised upward by 36 cents and 35 cents per share, respectively, over the past 60 days.
Burlington currently carries a Zacks Rank #2 (Buy).
Other Key Picks
Some other top-ranked stocks in the retail space are Dollar Tree Inc. DLTR, Ross Stores Inc. ROST and Target Corporation TGT.
Dollar Tree is an operator of discount variety stores offering a broad assortment of everyday consumables and discretionary merchandise. The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Dollar Tree’s current fiscal-year sales and earnings indicates growth of 6.5% and 21.7%, respectively, from the year-ago reported figures. DLTR delivered a trailing four-quarter earnings surprise of 32.1%, on average.
Ross Stores operates as an off-price retailer of apparel and home accessories. It presently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales implies growth of 17.1% and 10.1%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 10.2%.
Target offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It also has a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Target’s current fiscal-year earnings and sales implies growth of 21.7% and 6.5%, respectively, from the year-ago actuals. TGT delivered a trailing four-quarter average earnings surprise of 32.1%.
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Burlington's Smaller Store Format Improves Sales Productivity

DoorDash DASH shares have declined 18.7% in the year-to-date period, significantly underperforming the Zacks Computer and Technology sector's 11.8% growth. The weakness reflects investor concerns over continued investments in its global technology platform, Deliveroo integration and near-term margin pressure despite strong operating performance.
DoorDash continues to strengthen its long-term growth prospects by expanding its local commerce ecosystem and merchant services portfolio, supported by growing demand for same-day retail delivery and omnichannel commerce solutions.
The company is benefiting from growing demand for integrated digital commerce and on-demand fulfilment as retailers seek unified platforms for online ordering and local delivery. DoorDash has expanded its Commerce Platform beyond restaurant delivery through Drive, Digital Ordering, SevenRooms and Reservations, while strengthening its grocery and retail business with new categories, improved merchant onboarding and record customer additions. These investments have strengthened DoorDash's retail ecosystem and set the stage for deeper commerce platform integrations.
DoorDash Expands Local Commerce Platform With Shopify
DoorDash continues to strengthen its merchant ecosystem through investments in retail delivery, digital commerce and merchant enablement, supporting the growing adoption of on-demand local commerce.
DoorDash, Inc. Price and Consensus
Building on this strategy, the company announced in July 2026 a direct integration with Shopify SHOP that enables U.S. merchants with physical stores to seamlessly sell products on the DoorDash Marketplace while offering on-demand local delivery. Merchants can activate DASH directly from Shopify, automatically synchronize product catalogs and inventory and manage operations through a single platform.
The Shopify integration eliminates manual onboarding and separate catalog management, allowing merchants to reach millions of DoorDash customers while leveraging the company's nationwide delivery network. Designed for independent retailers and omnichannel businesses, the partnership is expected to expand retail selection, accelerate merchant acquisition, increase Marketplace gross order value (GOV) and strengthen DoorDash's position as a leading local commerce platform.
DASH Benefits From Expanding Partner Base
DoorDash is consistently investing in expanding its partner base to provide express grocery delivery for consumers, a new offering that further strengthens its position among on-demand delivery platforms. This has boosted DoorDash’s total orders and marketplace GOV. In the first quarter of 2026, total orders rose 27% year over year to 933 million, and Marketplace GOV increased 37% to $31.6 billion, driving revenues up 33% to $4 billion.
Further strengthening its merchant network, in May 2026, DoorDash partnered with Dollar Tree DLTR to offer on-demand delivery from more than 9,000 Dollar Tree stores across 48 U.S. states. Customers can access over 10,000 affordable products through DASH, enhancing convenience while helping Dollar Tree reach new shoppers and strengthen its omnichannel retail strategy.
DoorDash Provides Strong Q2 2026 Outlook
DoorDash's expanding merchant ecosystem, growing retail marketplace and continued investments in technology are expected to support long-term revenue growth. For the second quarter of 2026, DoorDash expects Marketplace GOV in the range of $32.4-$33.4 billion.
The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $4.32 billion, indicating year-over-year growth of approximately 31.53%.
The consensus mark for second-quarter 2026 earnings is pegged at 50 cents per share, unchanged over the past 30 days, indicating a year-over-year decline of 23.08%.
Competition & Margin Pressures Remain Key Concerns For DASH
Despite an expanding portfolio and partner base, the company continues to face intense competition from Uber Eats, Grubhub and other local delivery platforms, as well as retailers operating their own delivery capabilities. The competitive environment could keep promotional spending elevated, increase customer churn risk and limit long-term margin expansion.
Profitability remains under pressure as DoorDash continues to invest heavily in its global technology platform and Deliveroo integration. The company is investing several hundred million dollars to unify DoorDash, Wolt and Deliveroo on a common technology infrastructure, which could keep operating expenses high in the near term despite long-term efficiency benefits.
DASH's Zacks Rank & Stock to Consider
Currently, DoorDash carries a Zacks Rank #5 (Strong Sell).
Dell Technologies DELL is a better-ranked stock that investors can consider in the broader Zacks Computer and Technology sector. Dell Technologies sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DELL shares have surged 214.8% in the year-to-date period. The long-term earnings growth rate for Dell Technologies is pegged at 26.35%.
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DoorDash, Inc. (DASH) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

DASH Drives Growth Through Broader Commerce Platform Offerings

U.S. retail sales grew in June, as energy costs eased and online sales surged. The retail sector has been making a steady rebound amid high inflation and ongoing geopolitical tensions. Despite these challenges, spending has remained resilient, boosting the sector.
Given this situation, it would be ideal to invest in retail stocks with a strong online presence. We have selected five stocks, namely, Amazon.com, Inc. AMZN, Five Below, Inc. FIVE, Dollar Tree, Inc. DLTR, Target Corporation TGT and The TJX Companies, Inc. TJX.
Retail Sales Surge
Retail sales rose 0.2% in June after increasing 1% in the prior month, the Commerce Department reported on Thursday. The rise came in line with analysts’ expectations. On a year-over-year basis, retail sales climbed 6.7%.
The monthly gain was the slowest in five months, yet the sector continued to perform well. One of the biggest boosts came from lower gasoline prices after tensions between the United States and Iran eased in mid-June. Receipts at gas stations fell 5.3% last month, after jumping 2.6% in May.
Receipts at auto dealerships rose 1.9% in June. Also, online retail sales rose 1.9% last month, driven by Amazon Prime Day sales.
Sales at electronics and appliance stores advanced 0.8% in June, while receipts at sporting goods, hobby, musical instrument and book stores rose an impressive 1.3%.
Higher prices due to high tariffs have been weighing on household budgets, but higher incomes are boosting spending. Also, impressive tax refunds this year have been helping consumers spend more freely.
The U.S. economy grew 2.1% in the first quarter. Also, inflation declined sharply in June after surging for three months. The consumer price index declined 0.4% month over month, surpassing analysts’ expectations of a decline of 0.2%. Year over year, CPI fell to 3.5% in June, beating analysts’ expectations of a reading of 3.8%.
The sudden decline in inflation has also raised hopes that the Federal Reserve could wait for a longer period before deciding on whether to hike interest rates. Lower interest rates are likely to boost the sector further.
5 Retail Stocks With Upside
Amazon.com, Inc.
Amazon.com, Inc. is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe. AMZN’s online retail business revolves around the Prime program, well-supported by the company’s massive distribution network. Further, the Whole Foods Market acquisition helped Amazon establish a footprint in the physical grocery supermarket space. AMZN also enjoys a dominant position in the cloud-computing market, particularly in the Infrastructure as a Service space, thanks to Amazon Web Services.
Amazon.com has an expected earnings growth rate of 23.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 60 days. AMZN presently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Five Below, Inc
Five Below, Inc. is a specialty value chain retailer that provides a wide range of premium quality and trendy merchandise for $5 or below. FIVE mainly targets teenagers or pre-teen shoppers for its products, which include certain brands and licensed merchandise. Notably, these products belong to categories such as Style, Room, Sports, Tech, Create, Party, Candy and Now.
Five Below’s expected earnings growth rate for the current year is 35.1%. The Zacks Consensus Estimate for current-year earnings has improved 10.7% over the past 60 days. FIVE presently carries a Zacks Rank #1.
Dollar Tree
Dollar Tree, Inc. is an operator of discount variety stores offering merchandise and other assortments. DLTR’s stores successfully operate in major metropolitan areas, mid-sized cities and small towns. Dollar Tree offers a wide range of quality everyday general merchandise in many categories, including houseware, seasonal goods, candy and food, toys, health and beauty care, gifts, party goods, stationery, books, personal accessories, and other consumer items.
Dollar Tree’s expected earnings growth rate for the current year is 21.7%. The Zacks Consensus Estimate for Dollar Tree’s current-year earnings has improved 3.7% over the past 60 days. DLTR has a Zacks Rank #2.
Target Corporation
Target Corporation has evolved from being a pure brick & mortar retailer to an omni-channel entity. TGT has been investing in technologies, improving websites and mobile apps, and modernizing the supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players.
Target Corporation’s expected earnings growth rate for the current year is 10.3%. The Zacks Consensus Estimate for current-year earnings has improved 3.7% over the past 60 days. Target currently carries a Zacks Rank #2.
The TJX Companies
The TJX Companies, Inc.i s a leading off-price retailer of apparel and home fashions in the United States and worldwide. TJX’s broad range of assortments at varying prices helps it reach out to a broad range of consumers. In addition, The TJX Companies tries to attract consumers through a rapid turn of inventories.
The TJX Companies’ expected earnings growth rate for the current year is 9.3%. The Zacks Consensus Estimate for current-year earnings has improved 2.2% over the past 60 days. TJX presently has a Zacks Rank #2.
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5 Solid Stocks to Boost Your Portfolio as Retail Sales Continue to Surge

Shares of Five Below, Inc. FIVE have risen 41.3% over the past year, outperforming the Zacks Retail – Miscellaneous industry's decline of 14%. The company has also outpaced the Retail-Wholesale sector’s return of 4.5% and the S&P 500's rally of 25.4% during the same period.
FIVE’s Past Year Performance
Image Source: Zacks Investment Research
Five Below has also outperformed its peers, including Ollie's Bargain Outlet Holdings OLLI, Dollar Tree Inc. DLTR and Dollar General Corporation DG, over the past year.
Shares of Ollie's Bargain have declined 49.4%, while Dollar Tree and Dollar General have increased 16.6% and 17.8%, respectively.
FIVE vs. Peer Performances
Image Source: Zacks Investment Research
Closing at $197.71 yesterday, the FIVE stock stands 21.4% below its 52-week high of $251.63 reached on April 21, 2026. The stock has also moved above its 200-day simple moving average of $194.39, signaling a favorable technical setup.
FIVE Trades Above 200-Day Moving Averages
Image Source: Zacks Investment Research
The recent rise in the stock has contributed to its premium status. FIVE trades at a forward 12-month price-to-earnings (P/E) ratio of 21.11, higher than the industry’s average of 14.24. The company’s peers, Ollie's Bargain, Dollar Tree and Dollar General are trading at lower forward P/E ratios of 14.21, 17.52 and 16.59, respectively, than Five Below.
FIVE’s Valuation Snapshot
Image Source: Zacks Investment Research
Five Below’s Customer-Centric Strategy Strengthens Growth Prospects
Five Below continues to strengthen its long-term growth story through a customer-centric strategy that combines compelling value, trend-right merchandise and an engaging shopping experience. Management remains focused on delivering newness across categories while enhancing store execution and digital engagement. This integrated approach is reinforcing the company's competitive positioning and expanding its appeal among both existing and new customers.
The strategy is translating into broad-based business momentum. During the first quarter of fiscal 2026, comparable sales increased 22.7%, supported by a 19% increase in transactions and a 4% rise in average ticket. Growth was broad-based, with 15 of 18 merchandise departments posting positive comparable sales while all districts, store vintages and income cohorts delivered positive performance. These results suggest that demand is supported by healthy underlying customer engagement rather than isolated product trends.
Marketing has emerged as another important growth driver. Five Below continues to leverage creator partnerships, AI-powered content and social media to identify and amplify emerging trends while expanding its customer database for more personalized outreach. These initiatives are strengthening brand awareness, improving customer acquisition and supporting deeper customer relationships over time.
The company's merchandising strategy further enhances its competitive positioning. More than 80% of the assortment remains priced at $5 and below, preserving its core value proposition, while curated higher-priced products expand customer choice without diluting affordability. Simplified pricing, integrated Five Beyond merchandise and stronger product storytelling are making stores easier to shop and improving the overall customer experience.
Store expansion remains another key pillar of growth. Five Below opened 49 net new stores during the first quarter, ending the period with 1,970 locations across 46 states. Since then, the company has reached another significant milestone with the opening of its 2,000th store, highlighting the scalability of its retail concept and management's confidence in the brand's long-term expansion potential. Management continues to see significant white-space opportunities across the United States, with disciplined expansion expected to support market share gains and long-term revenue growth.
What to Expect From FIVE in the Future?
Following a stronger-than-expected first quarter, Five Below raised its fiscal 2026 outlook, reflecting management's confidence in the company's business momentum and execution. The company now expects net sales of $5.40-$5.48 billion, indicating approximately 14% year-over-year growth at the midpoint, while comparable sales are projected to increase 6-8%. The higher outlook reflects sustained customer demand, continued traffic growth and confidence in the company's operating strategy.
Five Below also expects continued profitability improvement during fiscal 2026. The company projects adjusted diluted earnings per share of $8.65-$9.05, while adjusted operating margin is expected to expand approximately 170 basis points to 11.6%. Gross margin expansion, fixed-cost leverage and distribution efficiencies are expected to offset higher investments in marketing, store labor and employee incentives, supporting both earnings growth and future investments.
The company remains committed to investing in long-term expansion. Five Below expects to open approximately 150 net new stores during fiscal 2026 while investing $230-$250 million in capital expenditures to support store growth, technology upgrades and infrastructure improvements. These investments are expected to strengthen the company's nationwide footprint and provide a solid foundation for scalable, sustainable growth.
Upward Estimate Revisions Signal Optimism on FIVE’s Earnings
Reflecting positive sentiment around Five Below, the Zacks Consensus Estimate for EPS has seen upward revisions. In the past seven days, the consensus estimates for the current and next fiscal years have increased by 5 cents to $9.01 and by 10 cents to $9.89 per share, respectively.
Image Source: Zacks Investment Research
How to Play FIVE Stock?
Five Below offers a compelling opportunity for long-term investors, backed by broad-based customer demand, strong traffic trends and a highly scalable store expansion strategy. The company's differentiated value proposition, customer-centric initiatives, merchandising innovation and growing digital engagement continue to strengthen its competitive position. Coupled with its raised fiscal 2026 outlook and upward earnings estimate revisions, Five Below appears well-positioned to deliver sustainable revenue and earnings growth.
Existing investors may consider maintaining their positions, while new investors can view the stock as an attractive long-term buying opportunity. Five Below currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Five Below Jumps 41% in a Year: Should You Still Buy the Stock?

Walmart Inc. WMT continues to strengthen its competitive position by expanding the value of its membership ecosystem beyond traditional retail. Instead of relying solely on low prices, the company is increasingly adding services to encourage members to engage more frequently across shopping, healthcare and digital offerings. Sam's Club's new collaboration with Weight Watchers is the latest example of this strategy.
Under the initiative, Sam's Club Plus members are eligible for a complimentary three-month Weight Watchers Core membership, while all members can access discounted pricing on additional wellness programs focused on nutrition, weight management and clinical support. The offering also complements Sam's Club's existing pharmacy services, prescription savings, healthy food offerings and prescription delivery capabilities, creating a more integrated wellness experience.
The collaboration is consistent with Walmart's broader focus on growing membership-based revenues and strengthening customer loyalty. Enterprise membership fee revenue increased more than 17% in the first quarter of fiscal 2027, while Sam's Club U.S. membership revenue rose 5.6%. Members are also making greater use of delivery, fuel savings and digital services, suggesting that expanding the range of membership benefits may encourage higher engagement and reinforce renewal rates over time.
While the partnership is unlikely to have a material impact on Walmart's near-term financial performance, it highlights the Zacks Rank #3 (Hold) company's efforts to make membership more valuable through services that extend beyond retail purchases. By integrating wellness support with grocery, pharmacy and digital offerings, Sam's Club is building a broader value proposition for its members.
If the initiative drives stronger engagement and more frequent use of membership benefits, it could further support Walmart's long-term strategy of expanding recurring, higher-margin revenue streams while reinforcing Sam's Club's competitive position in the warehouse club industry.
WMT Stock Price Performance, Valuation & Estimates
Shares of WMT have risen 18.1% over the past year compared with the industry’s growth of 17.3%.
WMT Price Performance Versus Industry
From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 36.71, higher than the industry’s average of 33.76.
WMT Valuation Compared to Industry
The Zacks Consensus Estimate for WMT’s current and next fiscal year earnings per share implies year-over-year growth of 9.5% and 13.3%, respectively.
Stocks to Consider
Ross Stores, Inc. ROST, a leading U.S. off-price retailer operating Ross Dress for Less and dd's DISCOUNTS stores, sports a Zacks Rank #1 (Strong Buy) at present. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Ross Stores’ current fiscal-year sales and earnings suggests growth of 9.1% and 17.1%, respectively, from the year-ago figures.
Dollar Tree, Inc. DLTR a leading value retailer that operates thousands of discount stores, currently carries a Zacks Rank #2 (Buy). DLTR delivered a trailing four-quarter earnings surprise of 32.1%, on average.
The Zacks Consensus Estimate for Dollar Tree’s current fiscal-year sales and earnings suggests growth of 6.5% and 21.7%, respectively, from the year-ago figures.
The TJX Companies, Inc. TJX, a major off-price apparel and home fashions retailer, currently carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for The TJX Companies’ current fiscal-year sales indicates growth of nearly 5.9%, and estimates for earnings suggest a 9.3% increase from the year-ago figure. TJX delivered a trailing four-quarter earnings surprise of 8.8%, on average.
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Can Walmart's Sam's Club Wellness Push Deepen Member Loyalty?

The S&P 500 Index ($SPX) (SPY) today is down -0.79%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -1.44%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.61%. September E-mini S&P futures (ESU26) are down -0.77%, and September E-mini Nasdaq futures (NQU26) are down -0.60%.
Stock indexes are sliding today as crude oil prices and bond yields jumped after President Trump declared the ceasefire with Iran is over. Mr. Trump called the ceasefire “a waste of time” after the US launched strikes against Iran in response to attacks on ships transiting the Strait of Hormuz. The escalation of hostilities has prompted a flight from risk and some stock selling. Limiting losses in the broader market is today’s strength in chipmakers and AI-infrastructure stocks, which are recovering some of Tuesday’s sell-off.
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Stocks added to their losses today, and crude prices raced to their highs on comments from President Trump, who said the US will probably launch further strikes on Iran and could resume a blockade of the country's ports. The escalation of hostilities in the Middle East has pushed crude prices sharply higher to a 2-week high, boosting inflation expectations and sending bond yields higher. The 10-year T-note yield rose to a 1.5-month high of 4.59%.
US MBA mortgage applications fell -2.2% in the week ended July 3, with the purchase mortgage sub-index down -0.6% and the refinancing mortgage sub-index down -4.1%. The average 30-year fixed rate mortgage rose +1 bp to 6.58% from 6.57% in the prior week.
The outlook for strong Q2 earnings is a bullish factor for stocks. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2.
WTI crude oil (CLQ26) surged more than +7% today to a 2-week high after the US launched strikes against more than 80 targets in Iran in response to Iran attacking commercial shipping in the Strait of Hormuz. Also, President Trump said the ceasefire with Iran is over, raising the prospect of renewed hostilities in the region that could disrupt energy supplies. The US late Tuesday also revoked the Iran oil waiver that allowed buyers to purchase and transport Iranian oil legally.
The markets are discounting a 33% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.
Overseas stock markets are lower today. The Euro Stoxx 50 fell to a 3.5-week low and is down -1.54%. China's Shanghai Composite slid to a 3.5-week low and closed down -0.49%. Japan's Nikkei-225 Stock Average dropped to a 3-week low and closed down -2.11%.
Interest Rates
September 10-year T-notes (ZNU6) today are down -14 ticks, and the 10-year T-note yield is up +3.4 bp to 4.585%. Sep T-notes dropped to a 1.5-month low today, and the 10-year T-note yield rose to a 1.5-month high of 4.591%. Today’s +7% surge in WTI crude oil prices to a 2-week high has boosted inflation expectations and undercut T-note prices. The 10-year breakeven inflation rate rose to a 2-week high of 2.277% today. Also, supply pressures are weighing on T-note prices as the Treasury will auction $39 billion of 10-year T-notes later today.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 3.5-week high of 3.083% and is up +8.0 bp to 3.073%. The 10-year UK gilt yield jumped to a 1.5-month high of 4.961% and is up +10.6 bp to 4.954%.
ECB Governing Council member and Bundesbank President Joachim Nagel said he can't rule out another ECB interest rate increase due to the recent setback with Iran.
Swaps are discounting a 17% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.
US Stock Movers
Homebuilders and building suppliers are under pressure today after the 10-year T-note yield jumped to a 1.5-month high, a negative factor for housing demand. Builders Firstsource (BLDR) is down more than -6%, and DR Horton (DHI) and Pulte Group (PHM) are down more than -4%. Also, Home Depot (HD), Lennar (LEN), and Toll Brothers (TOL) are down more than -3%, and KB Home (KBH) is down more than -2%.
Airline stocks and cruise line operators slid on Tuesday after WTI crude oil prices jumped by more than +7%. American Airlines Group (AAL) and Alaska Air Group (ALK) are down more than -5%, and Carnival (CCL) is down more than -4%. Also, Delta Air Lines (DAL), Norwegian Cruise Line Holdings (NCLH), and United Airlines Holdings (UAL) are down more than -3%.
Software stocks are sliding today, weighing on the broader market. Palantir Technologies (PLTR), Intuit (INTU), and Workday (WDAY) are down more than -4%, and Atlassian Corp (TEAM) and
ServiceNow (NOW) are down more than -3%. Also, Oracle (ORCL), Thomson Reuters (TRI), Autodesk (ADSK), and Salesforce (CRM) are down more than -2%, and Adobe Systems (ADBE) and Microsoft (MSFT) are down more than -1%.
Energy producers and service providers are climbing today with crude oil prices up by more than +7% at a 2-week high. Occidental Petroleum (OXY) is up more than +5% to lead gainers in the S&P 500, and Valero Energy (VLO) is up more than +5%. Also, Baker Hughes (BKR), Marathon Petroleum (MPC), and Phillips 66 (PSX) are up more than +4%, and APA Corp (APA) and Diamondback Energy (FANG) are up more than +3%. In addition, ConocoPhillips (COP), Chevron (CVX), Devon Energy (DVN), and Halliburton (HAL) are up more than +2%, and SLB Ltd (SLB) is up more than +1%.
Chipmakers and AI infrastructure stocks are moving higher today, recovering some of Tuesday's sell-off. The iShares Semiconductor ETF (SOXX) is up nearly 1%. Broadcom (AVGO) is up more than +4%, and SanDisk (SNDK) and Texas Instruments (TXN) are up more than +2%. Also, Western Digital (WDC), NXP Semiconductors NV (NXPI), Analog Devices (ADI), and Lam Research (LRCX) are up more than +1%.
Lemonade Inc (LMND) is down more than -9% after Morgan Stanley downgraded the stock to equal weight from overweight with a price target of $75.
Navitas Semiconductor (NVTS) is down more than -8% after Wolfspeed filed a patent infringement lawsuit against the company, alleging that a broad range of Navitas products infringes multiple Wolfspeed patents.
Ollie's Bargain Outlet Holdings (OLLI) is down more than -7% after JPMorgan Chase downgraded the stock to neutral from overweight.
Bath & Body Works (BBWI) is down more than -6% after Goldman Sachs downgraded the stock to sell from neutral with a price target of $19.
PayPal Holdings (PYPL) is down more than -3% after Barclays initiated coverage on the stock with an underweight rating and a price target of $42.
Beazer Homes USA (BZH) is up more than +14% after Dream Finders Homes said it has submitted an all-cash proposal to acquire the company for $32 a share.
Dollar Tree (DLTR) is up more than +1% after Raymond James upgraded the stock to outperform from market perform with a price target of $140.
Dell Technologies (DELL) is up more than +1% after Evercore ISI raised its price target on the stock to $500 from $450.
Earnings Reports(7/8/2026)
AZZ Inc (AZZ), Helen of Troy Ltd (HELE), Hub Group Inc (HUBG), PriceSmart Inc (PSMT), Pure Cycle Corp (PCYO), Toyo Co Ltd (TOYO).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Retreat on US-Iran Jitters

Interparfums, Inc. IPAR is increasingly leveraging digital commerce as consumer shopping habits reshape the global fragrance market. In the first quarter of 2026, the company indicated that more fragrance purchases are taking place through nontraditional retail channels such as Amazon, reflecting the growing role of digital marketplaces in product discovery and purchasing.
Consumers are increasingly discovering and engaging with fragrances through social media, major e-commerce platforms and other digital channels. This trend is also being supported by growing interest in personalized experiences, including fragrance layering and AI-driven product recommendations. Interparfums is aligning its brand strategy with these evolving consumer preferences while maintaining a consistent brand experience across digital and physical channels.
The importance of digital commerce is also evident across several brands. Donna Karan's Cashmere Mist deodorant continues to perform well on TikTok Shop and Amazon. The company also reported a 16% rebound in Be Delicious Core sales in the first quarter of 2026, reflecting improved momentum for the franchise.
Digital channels are becoming an increasingly important growth avenue in the United States, with Amazon U.S. and TikTok U.S. delivering stronger performance than several other regions. These platforms are also helping expand the company's reach among younger consumers.
As digital commerce continues to evolve, Interparfums is maintaining its focus on key online platforms where consumers increasingly discover and purchase prestige fragrances. Amazon and TikTok remain important channels for consumer engagement across several brands, reflecting the growing role of digital commerce within the company's distribution and brand-building efforts.
IPAR’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #2 (Buy) company have rallied 33.4% over the past three months, significantly outperforming the broader Consumer Discretionary sector, which declined 3.5% during the same period. Interparfums has also surpassed the industry and the S&P 500 index’s growth of 1.2% and 10.9%, respectively, during the same period.
IPAR Stock's Past 3 Months’ Performance
Image Source: Zacks Investment Research
Is IPAR a Value Play Stock?
Interparfums currently trades at a forward 12-month P/E ratio of 23.66 compared with the industry average of 15.14 and the sector’s 16.59. This valuation places the stock at a noticeable premium relative to comparable peers and the sector overall.
IPAR P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Other Stocks to Consider
The Estee Lauder Companies Inc. EL manufactures, markets and sells skin care, makeup, fragrance and hair care products worldwide. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Estee Lauder’s current fiscal-year sales and earnings calls for growth of 4.5% and 59.6%, respectively, from the year-ago reported numbers. EL delivered a trailing four-quarter average earnings surprise of 39.1%.
Five Below, Inc. FIVE operates as a specialty value retailer in the United States and currently flaunts a Zacks Rank #1. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings calls for growth of 14.7% and 34.3%, respectively, from the year-ago reported numbers.
Dollar Tree, Inc. DLTR is an operator of discount variety stores offering a broad assortment of everyday consumables and discretionary merchandise. DLTR currently carries a Zacks Rank #2. The company delivered a trailing four-quarter average earnings surprise of 32.1%.
The Zacks Consensus Estimate for Dollar Tree’s current fiscal-year earnings and sales indicates growth of 21.4% and 6.5%, respectively, from the year-ago actuals.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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Can Digital Commerce Strengthen Interparfums' Growth Momentum?

Coty Inc. COTY is making a strategic move to simplify its business and strengthen financial position. The beauty company has agreed to return the Gucci Beauty license to Kering about a year before the original contract was set to expire. In return, Coty will receive around $400 million, giving it more flexibility to reduce debt and invest in the core brands.
Under the agreement, Coty will continue managing Gucci Beauty through at least June 30, 2027. The company will receive $250 million upfront, with another $150 million due by Sept. 30, 2027, although up to $30 million of that amount depends on certain conditions being met. Coty will also sell enough Gucci Beauty inventory to Kering to support the transition and expects to incur about $30 million in cash taxes related to the transaction. Both companies have also agreed to resolve all pending litigation related to the Gucci Beauty license, removing a legal overhang ahead of the transition.
This move marks the end of a successful chapter for Coty, which has managed the Gucci Beauty business since 2016. Gucci Beauty sales have grown more than 60% since 2019, driven by popular fragrance lines such as Gucci Flora, Bloom, Guilty and Alchemist Garden. While the license will end earlier than originally planned, the agreement gives Coty greater financial flexibility to focus on its long-term priorities.
The transaction also aligns with Coty's broader strategic direction. Management has repeatedly emphasized that deleveraging remains its top capital allocation priority while focusing investments on fewer, higher-impact brands under the Coty.Curated strategy. The company is also working to simplify the business, reduce costs and improve cash flow. This agreement supports those goals by strengthening Coty's balance sheet and giving it greater flexibility to invest in the core prestige brands.
Coty’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #3 (Hold) company have gained 14.9% in the past month compared with the broader Consumer Staples sector, the industry and the S&P 500 index’s rise of 3.9%, 4.5% and 1.6%, respectively.
COTY Stock's Past Month Performance
Image Source: Zacks Investment Research
Is COTY a Value Play Stock?
Coty currently trades at a forward 12-month P/E ratio of 6.31, below the industry and the sector’s average of 19.33 and 17.11, respectively. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
COTY P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to Consider
The Estee Lauder Companies Inc. EL manufactures, markets and sells skin care, makeup, fragrance and hair care products worldwide. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Estee Lauder’s current fiscal-year sales and earnings calls for growth of 4.5% and 59.6%, respectively, from the year-ago reported numbers. EL delivered a trailing four-quarter average earnings surprise of 39.1%.
Five Below, Inc. FIVE operates as a specialty value retailer in the United States and currently flaunts a Zacks Rank #1. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings calls for growth of 14.7% and 34.3%, respectively, from the year-ago reported numbers.
Dollar Tree, Inc. DLTR is an operator of discount variety stores offering a broad assortment of everyday consumables and discretionary merchandise. DLTR currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 32.1%.
The Zacks Consensus Estimate for Dollar Tree’s current fiscal-year earnings and sales indicates growth of 21.4% and 6.5%, respectively, from the year-ago actuals.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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Coty (COTY) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How Coty Is Refocusing Its Business With the Gucci Beauty Exit

The Kroger Co. KR has agreed to acquire Giant Eagle for $1.65 billion, in a move that would significantly expand its presence across key Midwestern markets. The transaction includes $1.25 billion in cash and the assumption of roughly $400 million in liabilities. The deal is expected to close in 2027.
Giant Eagle brings a sizeable regional platform to Kroger, generating approximately $9 billion in annual sales through 197 supermarkets and 11 standalone pharmacies. Its operations span northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana, providing Kroger with access to attractive adjacent markets where Giant Eagle has built strong customer loyalty and brand recognition.
The acquisition aligns with Kroger's strategy of pursuing targeted opportunities that can create long-term value for customers, employees and shareholders. Giant Eagle's strengths in fresh foods, pharmacy services, private-label offerings and loyalty programs are expected to complement Kroger's expertise in e-commerce, personalization technology and data-driven merchandising.
Management believes the combination can accelerate growth across both in-store and digital channels while enhancing convenience and improving the overall shopping experience. The companies also intend to expand community-focused initiatives by extending Kroger's Zero Hunger Zero Waste program into new markets served by Giant Eagle.
Kroger plans to fund the purchase entirely with cash while maintaining its targeted leverage range of 2.3-2.5 times adjusted EBITDA. The company expects to preserve its dividend policy, continue its previously authorized $2 billion share repurchase program and retain flexibility to invest in core operations. The transaction is projected to contribute positively to adjusted earnings per share beginning in the second full year after closing, excluding integration-related expenses, although limited store divestitures are anticipated as part of the regulatory review process.
Kroger’s Price Performance, Valuation & Estimates
Shares of Kroger have lost 17.8% over the past year against the industry’s13.9% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Kroger trades at a trailing price-to-sales ratio of 0.23X, down from the industry’s average of 1.21X. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Kroger’s fiscal 2026 earnings implies a year-over-year growth of 7.4%, whereas the same for fiscal 2027 indicates an uptick of 6.5%. The estimates for fiscal 2026 and 2027 have been revised downward by 1 cent each, respectively, over the past seven days.
Image Source: Zacks Investment Research
Kroger currently carries a Zacks Rank #3 (Hold).
Key Picks
We have highlighted three better-ranked stocks, namely, Ross Stores Inc. ROST, Dollar Tree Inc. DLTR and Ollie's Bargain Outlet Holdings OLLI.
Ross Stores operates as an off-price retailer of apparel and home accessories. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales suggests growth of 17.1% and 9.1%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 10.2%.
Dollar Tree is an operator of discount variety stores offering a broad assortment of everyday consumables and discretionary merchandise. DLTR currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Dollar Tree’s current fiscal-year earnings and sales suggests growth of 21.4% and 6.5%, respectively, from the year-ago actuals. The company delivered a trailing four-quarter average earnings surprise of 32.1%.
Ollie's Bargain is a value retailer of brand-name merchandise at drastically reduced prices. OLLI also has a Zacks Rank of 2.
The Zacks Consensus Estimate for Ollie's Bargain’s current fiscal-year earnings and sales suggests growth of 17.1% and 12.7%, respectively, from the year-ago actuals. OLLI delivered a trailing four-quarter average earnings surprise of 4.9%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	18.99 19.07
Price/Sales	1.25 0.77
P/B	6.68 1.77
P/FCF	18.63 16.58

Indicator	TTM Median
ROE	35.89 14.73
ROA	9.47 6.75
ROI	20.95 9.35
Net Worth	19.17 1.25
Quick Ratio	0.39 0.79
Current Ratio	1.16 1.32

Indicator	TTM Median
Net Profit Margin	6.51 6.48
Operating Margin	8.82 8.48
Gross Margin	36.71 33.20
Return on tangible equity	40.69 23.46

Indicator	TTM Median
EPS	1.74 0.61
EPS Forecast	1.53 0.46
Revenue	4.98B 136.00M
Gross Profit	1.84B —
EBITDA	650.00M —

Dollar Tree, Inc.

Recent quarterly and TTM performance

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