In Thursday's early morning trading session, shares of the discount retailer are jumping 7.78% to $37.83.
The analyst action comes after the company reported strong first quarter earnings yesterday. It reported revenue of $153.7 million, or 8 cents per share, compared to revenue of $126 million, or 6 cents per share in the same quarter last year.
The company beat analysts' estimates who expected revenue of $151.3 million, or 7 cents per share, according to those polled by Thomson Reuters.
"We are please with our first quarter results," CEO Joel Anderson said. "Continued strength in new store performance drove the sales and earnings upside versus our guidance, reinforcing our excitement and confidence in the store growth potential for this brand."
While analysts maintain their positive outlook, they said that they are waiting for one key outcome of the company's advertising changes, which will make its stores less dependent on the traffic generated by other retailers during the holidays.
Separately, TheStreet Ratings team rates FIVE BELOW INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FIVE BELOW INC (FIVE) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and premium valuation."