JPMorgan sees several upcoming catalysts for Five Below as the fall holiday season approaches. The bank upgraded shares of the discount retailer to an overweight rating from neutral. It also raised its price target to $186 per share from $154. Shares of Five Below have surged 49% this year. JPMorgan's new price target is approximately 19% above where the stock closed on Friday afternoon. FIVE YTD mountain FIVE YTD chart As a catalyst, analyst Matthew Boss noted an idiosyncratic opportunity year-over-year in October due to Five Below's Halloween product offerings. Continued pricing tailwinds and transaction momentum also stem from Five Below becoming a "one-stop" Holiday shop with refreshed Thanksgiving and Christmas offerings for consumers, he added. Boss also applauded the managing team of Five Below for their strong direction and recent strategic initiatives. "We see management's recent initiatives to improve product (improved speed/chase across FIVE's 8 worlds and diversified trends), marketing (enhanced digital/social efforts), and store experience (simplified displays/fixtures & price clarity) supporting consistent same-store-sales growth, with high visibility to total revenues supported by store growth," he wrote. Ahead of Five Below's next earnings release, Boss raised his expected third-quarter earnings to 38 cents per share, above Street consensus of 22 cents per share and management's guidance of between 12 cents to 24 cents. He added that he sees further potential upside to Wall Street's forecast same-store-sales growth prediction of 10%. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
