Five Below is set for years of solid income growth and stock price gains thanks to new store openings, according to J.P. Morgan.

"Five Below's new store economics are best-in-class across our coverage at less than a one-year payback period (and 150 percent return on investment) with three buckets of conservatism embedded in management's current 2,500 store saturation target," analyst Matthew Boss said in a note to clients Monday. "Brand awareness reached 60 percent in markets open at least two-years in November 2017 with same-store-sales strength increasingly diversified."