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BJ's Wholesale Club (BJ) Gains But Lags Market: What You Should Know

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BJ's Wholesale Club (BJ - Free Report) closed the most recent trading day at $38.78, moving +0.13% from the previous trading session. This move lagged the S&P 500's daily gain of 1.05%. Elsewhere, the Dow gained 1.44%, while the tech-heavy Nasdaq added 0.66%.

Heading into today, shares of the wholesale membership warehouse operator had gained 14.52% over the past month, outpacing the Consumer Discretionary sector's loss of 3.29% and the S&P 500's loss of 1.56% in that time.

Wall Street will be looking for positivity from BJ as it approaches its next earnings report date. 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.

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.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BJ is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, BJ is holding a Forward P/E ratio of 17.5. This valuation marks a premium compared to its industry's average Forward P/E of 15.46.

We can also see that BJ currently has a PEG ratio of 1.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Consumer Services - Miscellaneous industry currently had an average PEG ratio of 1.34 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 184, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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