Top Momentum Stock to Consider Purchasing on December 8th
Village Farms International: The company, a producer of greenhouse-grown vegetables, has a Zacks Rank of #1 (Strong Buy) and saw a 75% increase in its earnings estimate over the last 60 days, with shares rising 31.3% in the past three months.
Five Below: This retailer, known for offering products at $5 or below, also holds a Zacks Rank of #1 and experienced a 7.2% increase in its earnings estimate, with shares gaining 14.4% over the last three months.
Marvell Technology: A fabless semiconductor company with a Zacks Rank of #1, Marvell's earnings estimate increased by 1.4%, and its shares surged 50% in the last three months.
Investment Insights: Zacks Investment Research is preparing to release its top 10 stock picks for 2026, highlighting a historical performance of +2,530.8% for its top stocks from 2012 to November 2025, significantly outperforming the S&P 500.
Trade with 70% Backtested Accuracy
Analyst Views on FIVE
About FIVE
About the author

- Tariff Legality Review: The Supreme Court is poised to rule on the legality of tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA), which could significantly impact pricing and margin strategies for consumer giants like Costco and Procter & Gamble.
- Potential EBITDA Uplift: Morgan Stanley's analysis suggests that a rollback or limitation of IEEPA-based tariffs could lead to a mid-single-digit uplift in EBITDA for affected retailers, providing notable margin support amid economic pressures.
- Retailer Response Strategies: While awaiting the ruling, retailers such as Costco and Amazon are leveraging strong negotiating power and value-oriented business models to navigate tariff pressures, ensuring they protect consumer value even as costs rise.
- Optimistic Market Outlook: Despite tariffs remaining a defining feature of the trade landscape, analysts believe that consumer spending may receive additional support from tax refunds, making the retail and consumer staples sectors attractive investment opportunities.
- Market Rebound: The stock market experienced a slight rebound on Tuesday, despite remaining divided, indicating cautious optimism among investors that could provide some support for future trading.
- Nvidia Gains: Nvidia's stock rose late in the session due to a deal with Meta in the AI sector, reflecting ongoing market confidence in its capabilities, which may drive future earnings growth.
- AMD and Broadcom Decline: In contrast, AMD and Broadcom saw their stock prices slump, suggesting a cautious outlook from the market regarding these companies, which could affect their short-term investment appeal.
- Increased Industry Divergence: The overall market divergence has intensified, with some tech stocks performing well while others face pressure, potentially leading investors to be more selective in their stock choices, impacting overall market liquidity.
- Market Rebound: The stock market experienced a slight rebound on Tuesday, despite remaining divided, indicating cautious optimism among investors that may provide some support for future trading.
- Nvidia Gains: Nvidia's stock rose late in the session due to a deal with Meta in the AI sector, highlighting its ongoing leadership in AI and potential new growth opportunities for the company.
- AMD and Broadcom Decline: In contrast, AMD and Broadcom saw their stock prices slump, reflecting market concerns about the semiconductor industry, which could impact investor confidence and future investment decisions in this sector.
- Divergent Investor Sentiment: While Nvidia performed strongly, the overall market sentiment remains divided, prompting investors to closely monitor industry dynamics and company fundamentals to make more informed investment choices.
- Tech Stock Pressure: Despite attempts by high-multiple tech stocks like Microsoft to bounce back, the broader market remains under pressure due to fears that AI disruption could undermine traditional enterprise software companies, with the S&P 500 and Nasdaq down 1% and 2%, respectively.
- Eli Lilly Strong Performance: Pharmaceutical giant Eli Lilly saw its shares rise nearly 10% after delivering a significant earnings beat, indicating strong market confidence in its future growth and likely enhancing its market share in the pharmaceutical sector.
- Eaton Stock Volatility: Eaton's stock fluctuated near the flat line after a mixed fourth-quarter report, ultimately closing up nearly 1%, with investor focus on the planned spinoff of its mobility business in 2027 potentially serving as a future catalyst for growth.
- GE Vernova Decline: Despite an upgrade from Baird to outperform, GE Vernova's shares fell 7.5% to around $722, reflecting market concerns about the energy infrastructure cycle, although analysts expressed optimism about avoiding overcapacity issues in the near term.
- Leadership Change: Under new CEO Winnie Park, Five Below (FIVE) is shifting to a more merchant-led organization, which is expected to drive continued improvements in earnings and valuation, reflecting a focus on core and extreme value merchandise.
- Target Price Increase: BofA Securities upgraded FIVE from Underperform to Buy, raising the target price to $233, an 18% increase from Tuesday's closing price, indicating strong market confidence in its future growth.
- Merchandising Strategy Shift: The company is repositioning higher-priced items to the front of the store, emphasizing relative value, which is expected to drive increased traffic and transactions, with analysts noting potential for comp sales growth in the coming years.
- Growth Strategy Optimization: Management's decision to slow store growth to 9% from 15% will enhance site selection and execution, supporting consistent annual EPS growth of over 10%, while also improving EBIT margins and return on invested capital.
- Leadership Changes: Analyst Ronald Ohmes from Bank of America highlights that the new management team at Five Below could drive a return to higher P/E multiples, particularly under the leadership of new CEO Winnie Park, which is expected to enhance performance.
- Product Line Refresh: The company has revitalized its product pipeline and introduced new 'extreme value' items, such as fitness products and apparel, which have provided customers with a sense of novelty, thereby enhancing sales potential and positively impacting future performance.
- Marketing Investments: Five Below's investments in marketing are expected to drive increased traffic and transaction volumes, with Ohmes noting that this will support higher average unit retail prices, leading to long-term same-store sales growth.
- Slower Store Growth: The company has reduced its store growth rate from 15% to 9%, which is anticipated to improve site selection and execution efficiency, a strategic move that should enhance overall business performance.











