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

Zacks Equity Research
·3-min read

BJ's Wholesale Club (BJ) closed at $42.43 in the latest trading session, marking a +1.26% move from the prior day. This change outpaced the S&P 500's 0.64% gain on the day. Meanwhile, the Dow gained 1.39%, and the Nasdaq, a tech-heavy index, added 0.52%.

BJ will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.53, up 35.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.64 billion, up 8.93% from the year-ago period.

BJ's full-year Zacks Consensus Estimates are calling for earnings of $2.21 per share and revenue of $14.37 billion. These results would represent year-over-year changes of +51.37% and +8.97%, respectively.

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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. BJ is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note BJ's current valuation metrics, including its Forward P/E ratio of 18.94. Its industry sports an average Forward P/E of 18.94, so we one might conclude that BJ is trading at a no noticeable deviation comparatively.

We can also see that BJ currently has a PEG ratio of 1.4. 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 1.4 as of yesterday's close.

The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 127, putting it in the top 50% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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Zacks Investment Research