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What Should You Know About The Future Of BJ's Wholesale Club Holdings, Inc.'s (NYSE:BJ)?

Simply Wall St

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After BJ's Wholesale Club Holdings, Inc.'s (NYSE:BJ) earnings announcement on 04 May 2019, analyst consensus outlook appear cautiously optimistic, with earnings growth rate expected to be 44% next year, which is within range of the past five-year average earnings growth of 41%. By 2020, we can expect BJ's Wholesale Club Holdings’s bottom line to reach US$183m, a jump from the current trailing-twelve-month of US$127m. Below is a brief commentary on the longer term outlook the market has for BJ's Wholesale Club Holdings. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

See our latest analysis for BJ's Wholesale Club Holdings

Exciting times ahead?

Longer term expectations from the 14 analysts covering BJ’s stock is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for BJ, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

NYSE:BJ Past and Future Earnings, June 19th 2019

By 2022, BJ's earnings should reach US$236m, from current levels of US$127m, resulting in an annual growth rate of 14%. This leads to an EPS of $1.91 in the final year of projections relative to the current EPS of $1.09. Margins are currently sitting at 1.0%, which is expected to expand to 1.7% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For BJ's Wholesale Club Holdings, I've put together three relevant factors you should look at:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is BJ's Wholesale Club Holdings worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BJ's Wholesale Club Holdings is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of BJ's Wholesale Club Holdings? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.