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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 $42.48, moving +0.97% from the previous trading session. This change lagged the S&P 500's 1.61% gain on the day. Meanwhile, the Dow gained 0.77%, and the Nasdaq, a tech-heavy index, added 2.55%.

Heading into today, shares of the wholesale membership warehouse operator had gained 12.85% over the past month, outpacing the Consumer Discretionary sector's loss of 2.33% and the S&P 500's loss of 0.35% in that time.

Investors will be hoping for strength from BJ as it approaches its next earnings release. On that day, BJ is projected to report earnings of $0.64 per share, which would represent year-over-year growth of 60%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.92 billion, up 12.9% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.01 per share and revenue of $15.25 billion. These totals would mark changes of +106.16% and +15.62%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for BJ. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. BJ is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, BJ is holding a Forward P/E ratio of 13.97. For comparison, its industry has an average Forward P/E of 13.71, which means BJ is trading at a premium to the group.

Also, we should mention that BJ has a PEG ratio of 0.89. 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 had an average PEG ratio of 1.79 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 244, putting it in the bottom 5% 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.

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


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