Five Below and International Paper have been featured as Zacks' Bull and Bear of the Day selections

Press Release Overview

Chicago, IL – April 2, 2026 – Zacks Equity Research has spotlighted Five Below (FIVE) as their Bull of the Day, while International Paper (IP) is named Bear of the Day. The report also features insights on Micron Technology, Inc. (MU) and Lam Research Corp. (LRCX).

Summary of Featured Stocks

• Bull of the Day: Five Below (FIVE)
• Bear of the Day: International Paper (IP)
• Additional Analysis: Micron Technology (MU) and Lam Research (LRCX)

Bull of the Day: Five Below

Five Below stands out in a market where investors are becoming more selective. The company’s strategy focuses on trendy products, impulse buys, and affordable pricing, attracting shoppers who want value without sacrificing quality. Their offerings range from seasonal decorations to tech gadgets, snacks, toys, and home essentials, making them a favorite among budget-minded customers.

This discount retailer has successfully balanced affordability with discretionary spending, positioning itself to outperform as consumers continue to seek bargains but remain willing to spend. Five Below’s expansion across the U.S. is robust, with significant growth potential in specialty retail. This growth supports both earnings and long-term valuation for investors.

Analyst optimism is evident, with eight raising current year forecasts and five increasing estimates for the following year. The Zacks Consensus Estimate for this year has climbed from $6.12 to $7.84, and next year’s projection has risen from $6.72 to $8.93. This translates to expected EPS growth of 17.54% this year and 13.8% next year, earning Five Below a Zacks Rank #1 (Strong Buy).

Bear of the Day: International Paper

International Paper faces multiple challenges, including weak cyclical demand, restructuring expenses, plant closures, and a significant corporate split. The company’s earnings outlook remains uncertain, and demand has yet to show signs of recovery.

Despite appearing undervalued after a steep decline, International Paper’s stock is still trading about 36% below its 52-week high. Institutional investors seem to be selling rather than buying. The company reported a substantial loss in 2025 due to impairment and restructuring, and although management is targeting improved EBITDA for 2026, the market remains skeptical.

Demand for packaging and box shipments has softened in both North America and Europe, as consumer spending slows and industrial activity fluctuates. This poses a significant challenge for a business reliant on high volumes. If demand remains weak, margin recovery will be difficult.

Analysts have lowered their estimates for both this year and next, with three reducing current year forecasts and one cutting next year’s numbers. The Zacks Consensus Estimate for this year dropped from $2.51 to $1.85, and next year’s estimate fell from $3.58 to $3.04.

The Paper and Related Products sector currently ranks in the bottom 3% of Zacks Industry Rank, with no stocks in the industry holding favorable Zacks ratings.

AI Stocks: Strong Performance in Q1 and Outlook for Q2

Although the broader market struggled in the first quarter of 2026, certain AI-related stocks demonstrated notable strength. Micron Technology, Inc. saw its shares rise by 17.9%, while Lam Research Corp. gained 24.8% during the same period.

With the AI sector continuing to expand, both companies are positioned for further growth in the second quarter. Here’s why they remain compelling investment choices.

Micron Technology: Positive Momentum

Micron is experiencing heightened demand for its advanced memory products tailored for AI applications. Its high-bandwidth memory (HBM) chips are increasingly sought after for their efficiency and ability to handle intensive workloads. Despite supply limitations, demand remains strong as major data centers and hyperscale operators ramp up their AI infrastructure.

This supply-demand imbalance is expected to drive prices higher, benefiting Micron. The company anticipates third-quarter fiscal 2026 revenues around $33.5 billion, with gross margins nearing 81%, reflecting robust financial performance.

Micron reported $23.86 billion in revenue for the second quarter of fiscal 2026, marking a 196.4% year-over-year increase and a 74.9% rise from the previous month. This follows a 57% year-over-year revenue jump in the first quarter, underscoring sustained growth and strong pricing power.

Lam Research: Growth Prospects

Lam Research is poised for continued success, benefiting from increased capital expenditures by companies like Micron. Micron’s CEO has announced plans to invest more in equipment to boost memory chip production, which is advantageous for Lam Research as a leading supplier of semiconductor manufacturing equipment.

Lam Research’s expanding product portfolio supports its growth, with management projecting revenues of approximately $5.7 billion for the March 2026 quarter and expectations for strong margins and earnings.

The company closed 2025 with $5.34 billion in revenue for the December quarter and a non-GAAP gross margin of 49.7%. Effective operations drove net income to $1.59 billion, highlighting solid profitability.

Why Micron and Lam Research Are Top Picks

Micron’s AI-focused memory products are in high demand, reinforcing its market leadership and pricing strength. The company is generating substantial free cash flow, reaching $6.9 billion in the fiscal second quarter of 2026, which can be used for growth initiatives and debt reduction.

Lam Research is also well-positioned for ongoing growth, supported by strong industry demand, an expanding product lineup, and efficient operations. Both companies stand out as attractive investment opportunities.

Micron’s return on equity (ROE) is 42.6%, significantly higher than the Computer - Integrated Systems industry average of 16.5%. Lam Research’s ROE of 62.8% far exceeds the Electronics - Semiconductors industry average of 34.1%.

Both Micron and Lam Research currently hold Zacks Rank #1 (Strong Buy) status. View the full list of Zacks Rank #1 stocks.

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Contact Information

• Zacks Investment Research
• Phone: 800-767-3771 ext. 9339
• Website: https://www.zacks.com