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BJ's Wholesale Club (BJ) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·3 mins read

In the latest trading session, BJ's Wholesale Club (BJ) closed at $40.80, marking a +1.19% move from the previous day. This move outpaced the S&P 500's daily gain of 0.88%. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 1.39%.

Coming into today, shares of the wholesale membership warehouse operator had lost 3.98% in the past month. In that same time, the Consumer Discretionary sector gained 2.47%, while the S&P 500 gained 3.54%.

BJ will be looking to display strength as it nears its next earnings release. On that day, BJ is projected to report earnings of $0.63 per share, which would represent year-over-year growth of 53.66%. Meanwhile, our latest consensus estimate is calling for revenue of $3.70 billion, up 14.67% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.59 per share and revenue of $15.26 billion. These totals would mark changes of +77.4% and +15.66%, respectively, from last year.

Any recent changes to analyst estimates for BJ should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BJ is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, BJ is currently trading at a Forward P/E ratio of 15.56. This represents a premium compared to its industry's average Forward P/E of 15.39.

Investors should also note that BJ has a PEG ratio of 0.99 right now. 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 1.01 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 91, which puts it in the top 36% 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.

To follow BJ in the coming trading sessions, be sure to utilize Zacks.com.

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BJs Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
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