5 Best Up and Coming Stocks to Invest In

2. Five Below, Inc. (NASDAQ: FIVE)

Number of Hedge Fund Holders: 43  

Five Below, Inc. (NASDAQ: FIVE) is a Philadelphia-based specialty value retailer. It is placed second on our list of 10 best up and coming stocks to invest in. The company’s shares have offered investors returns exceeding 69% over the course of the past year. The firm has a market cap of over $10 billion and was founded in 2002. The company recently partnered with Instacart, the leading online grocery platform in North America. The move will help the firm expand reach in the region. 

On June 3, investment advisory R5 Capital initiated coverage of Five Below, Inc. (NASDAQ: FIVE) stock with a Buy rating and a price target of $251. 

Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Five Below, Inc. (NASDAQ: FIVE) with 807,965 shares worth more than $154 million. 

In its Q4 2020 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and Five Below, Inc. (NASDAQ: FIVE) was one of them. Here is what the fund said:

“Throughout the year, we tried methodically to rebalance the portfolio between “stay at home” and “return to normal” whenever the market appeared too pessimistic or optimistic about the sustainability of recent, pandemic-driven trends. As the year went on, we found ourselves tilting more towards “return to normal.” We established a new position in US retailer Five Below, a discount chain built around a rather simple concept: fill nondescript big-box locations with as many as possible items priced under US$5 that can tickle the imagination of an American teen or tween. As “pre-2020” as that may sound, we were impressed by the company’s quick resumption of strong same-store sales growth after the lockdowns early in the year. Clearly, Five Below offers a value and entertainment proposition that e-commerce is not able to satisfy and which we can see ourselves “sitting” on potentially for years to come.”