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Should Value Investors Buy BJ's Wholesale Club (BJ) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is BJ's Wholesale Club (BJ - Free Report) . BJ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We also note that BJ holds a PEG ratio of 0.88. 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. BJ's industry currently sports an average PEG of 1.03. Within the past year, BJ's PEG has been as high as 1.91 and as low as 0.87, with a median of 1.22.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BJ has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.94.
These are just a handful of the figures considered in BJ's Wholesale Club's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BJ is an impressive value stock right now.
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Should Value Investors Buy BJ's Wholesale Club (BJ) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is BJ's Wholesale Club (BJ - Free Report) . BJ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We also note that BJ holds a PEG ratio of 0.88. 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. BJ's industry currently sports an average PEG of 1.03. Within the past year, BJ's PEG has been as high as 1.91 and as low as 0.87, with a median of 1.22.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BJ has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.94.
These are just a handful of the figures considered in BJ's Wholesale Club's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BJ is an impressive value stock right now.