BJ's Wholesale Club (BJ) closed at $39.37 in the latest trading session, marking a +0.66% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.34%. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.73%.
Prior to today's trading, shares of the wholesale membership warehouse operator had gained 12.61% over the past month. This has outpaced the Consumer Discretionary sector's gain of 5.94% and the S&P 500's gain of 5.71% in that time.
BJ will be looking to display strength as it nears its next earnings release. In that report, analysts expect BJ to post earnings of $0.53 per share. This would mark year-over-year growth of 35.9%. Meanwhile, our latest consensus estimate is calling for revenue of $3.64 billion, up 8.93% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.21 per share and revenue of $14.37 billion. These totals would mark changes of +51.37% and +8.97%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for BJ. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BJ is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that BJ has a Forward P/E ratio of 17.68 right now. Its industry sports an average Forward P/E of 16.17, so we one might conclude that BJ is trading at a premium comparatively.
It is also worth noting that BJ currently has a PEG ratio of 1.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. BJ's industry had an average PEG ratio of 1.47 as of yesterday's close.
The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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BJs Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
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