Five Below and International Paper have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – April 2, 2026 – Zacks Equity Research shares Five Below FIVE as the Bull of the Day and International Paper IP as the Bear of the Day. In addition, Zacks Equity Research provides analysis on —Micron Technology, Inc. MU and Lam Research Corp. LRCX.

Here is a synopsis of all three stocks:

Bull of the Day:

Let me tell you something, this is exactly the kind of stock that gets interesting when the market starts getting selective. This company has built a business model around trend-right merchandise, impulse purchases, and a price point that keeps shoppers coming back. Whether it’s seasonal décor, tech accessories, candy, toys, or home goods, the company has become a destination for budget-conscious consumers without feeling “cheap.” That matters. Consumers still want the dopamine hit of buying something fun, and this company delivers it at a price point that feels easy.

Today’s Bull of the Day is Five Below, the discount retailer that continues to hit the sweet spot between value and discretionary spending. In an environment where consumers are still hunting for deals but not completely shutting their wallets, this is the kind of name that can quietly outperform.

From a market perspective, this is where the story gets compelling. Retail has been a stock-picker’s game, and names with strong traffic trends and expanding margins tend to separate from the pack. Five Below’s store growth runway remains one of the best in specialty retail, with plenty of white space left across the U.S. That expansion engine gives investors both earnings growth and a long-term multiple support story.

Five Below, Inc. price-consensus-chart | Five Below, Inc. Quote

That’s a big part of the reason why 8 analysts have upped the ante for current year estimates and 5 have done so for next year. The bullish moves have pushed up our Zacks Consensus Estimate for the current year from $6.12 to $7.84 while next year’s number is up from $6.72 to $8.93. That means current year EPS growth is now forecast to come in at 17.54% while next year’s set to expand another 13.8%. That’s the reason why this is a Zacks Rank #1 (Strong Buy) right now.

From a market perspective, this story really gets compelling. Retail has been a stock-picker’s game, and names with strong traffic trends and expanding margins tend to separate from the pack. Five Below’s store growth runway remains one of the best in specialty retail, with plenty of white space left across the U.S. That expansion engine gives investors both earnings growth and a long-term multiple support story.

Bear of the Day:

Today’s Bear of the Day is a stock caught between cyclical demand weakness, restructuring costs, plant closures, and a major corporate separation. Until I see clearer evidence that earnings power is stabilizing and demand is improving, this looks more like dead money than opportunity.

I’m talking about Zacks Rank #5 (Strong Sell) International Paper. While the stock may look “cheap” on the surface after a brutal selloff, there are too many moving pieces here for me to get comfortable.

First, the stock has simply been under pressure. Shares are still sitting roughly 36% below their 52-week high, even after a recent bounce. That kind of technical damage usually tells you institutions are still distributing shares, not accumulating them.

Then there’s the earnings picture. The company posted a massive 2025 loss driven by goodwill impairment and restructuring charges, and while management is pointing investors toward adjusted EBITDA targets for 2026, the market is clearly not fully buying the turnaround yet.

The bigger issue? Demand softness. Box shipments and packaging demand have weakened on both sides of the Atlantic as consumer spending slows and industrial activity remains uneven. That’s a problem for a capital-intensive business that depends on volume leverage. If volumes stay soft, margin recovery becomes much harder.

International Paper Company price-consensus-chart | International Paper Company Quote

That’s the reason why analysts have cut estimates for both the current year and next year over the last thirty days. Three analysts have dropped current year numbers while one has done so for next year. That’s dropped the Zacks Consensus Estimate for the current year from $2.51 to $1.85 while next year’s number is off from $3.58 to $3.04.

The Paper and Related Products industry sits in the Bottom 3% of our Zacks Industry Rank. Right now, there are zero stocks in that industry which are in the good graces of our Zacks Rank.

Additional content:

Up 15%+ in Q1: AI Stocks Still Flashing "Strong Buy" for Q2

Despite a weak first quarter of 2026 for the broader market, some artificial intelligence (AI) stocks did show resilience and momentum.Micron Technology, Inc., which drives AI with its advanced memory solutions, and Lam Research Corp., a key “pick-and-shovel” AI play, witnessed their shares rise 17.9% and 24.8%, respectively, during the quarter.

With the AI boom gaining pace, both stocks are set for further gains in the second quarter. Here’s a look at why they remain solid buys as the new quarter kicks off.

Reasons to Be Bullish on Micron

Micron is witnessing an increase in demand for its high-value offerings, particularly AI-focused memory solutions. Its high-bandwidth memory (HBM) chips are gaining popularity for their ability to handle massive workloads while delivering enhanced power efficiency. Despite supply constraints, the demand for HBM chips remains robust as hyperscalers and data center operators continue expanding their AI infrastructure.

Interestingly, the demand-supply imbalance in HBM chips is expected to drive prices higher and help Micron gain over time. As a result, Micron projects revenues of around $33.5 billion for the third-quarter fiscal 2026, with gross margins nearly 81%, pointing to another significant leap and highlighting its strong financial momentum, according to investors.micron.com.

Micron has already delivered revenues of $23.86 billion in the second quarter of fiscal 2026, up 196.4% year over year and 74.9% from the previous month. This comes after a 57% year-over-year rise in revenues in the fiscal first quarter of 2026, indicating a sustained growth trajectory fueled by strong pricing power and dominance in the semiconductor industry.

Reasons to Be Bullish on Lam Research

Lam Research appears well-positioned for more gains ahead, supported by Micron’s growth trajectory. This is because increased capital spending by companies like Micron is expected to provide a meaningful boost to their business. Micron’s CEO, Sanjay Mehrotra, said that the company intends to invest more in equipment to expand memory chip production, a positive development for Lam Research, a leading semiconductor equipment manufacturer.

Lam Research is positioned for sustained growth, supported by its expanding product portfolio. Management has guided for higher revenues of around $5.7 billion for the March 2026 quarter, along with expectations of solid margins and improved earnings, according to newsroom.lamresearch.com.

Lam Research also ended 2025 on a solid note, reporting $5.34 billion in revenues for the December 2025 quarter, with a non-GAAP gross margin of 49.7%. Robust operational execution helped drive net income to $1.59 billion, underscoring the company’s healthy profitability.

Why Micron & Lam Research Are Buys Now

Micron’s AI-focused memory solutions are experiencing strong demand, driven by robust growth and reinforcing its leadership and pricing power in the semiconductor industry. Micron is also generating billions in surplus cash, which can be utilized for future growth initiatives and debt reduction, with adjusted free cash flow reaching $6.9 billion in the fiscal second quarter of 2026.

Lam Research is also set for continued growth, gaining from strong industry demand, expanding product offerings, and solid operational execution, making both Micron and Lam Research attractive investment opportunities.

Both companies are more efficient in generating profits than their peers. This is because Micron’s return on equity (ROE) of 42.6% far exceeds the Computer - Integrated Systems industry’s ROE of 16.5%.

Similarly, Lam Research’s ROE of 62.8% significantly outpaces the 34.1% ROE of the Electronics - Semiconductors industry.

Therefore, Micron and Lam Research are rightly Zacks Rank #1 (Strong Buy) stocks. You can see the complete list of today’s Zacks Rank #1 stocks here.

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Micron Technology, Inc. (MU): Free Stock Analysis Report

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