Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, BJ's Wholesale Club (BJ - Free Report) closed at $38.22, marking a -1.62% move from the previous day. This change lagged the S&P 500's daily gain of 0.55%. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 1.03%.

Coming into today, shares of the wholesale membership warehouse operator had gained 2.4% in the past month. In that same time, the Consumer Discretionary sector gained 3.37%, while the S&P 500 gained 3.13%.

Investors will be hoping for strength from BJ as it approaches its next earnings release. The company is expected to report EPS of $0.64, up 60% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.92 billion, up 12.9% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.01 per share and revenue of $15.25 billion, which would represent changes of +106.16% and +15.62%, respectively, from the prior year.

Any recent changes to analyst estimates for BJ should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BJ is currently a Zacks Rank #2 (Buy).

Investors should also note BJ's current valuation metrics, including its Forward P/E ratio of 12.9. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.9.

It is also worth noting that BJ currently has a PEG ratio of 0.82. 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 was holding an average PEG ratio of 1.72 at yesterday's closing price.

The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 119, putting it in the top 47% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


BJs Wholesale Club Holdings, Inc. (BJ) - free report >>

Published in