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

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BJ's Wholesale Club (BJ - Free Report) closed the most recent trading day at $59.35, moving +1.56% from the previous trading session. This change outpaced the S&P 500's 0.18% gain on the day.

Prior to today's trading, shares of the wholesale membership warehouse operator had gained 9.66% over the past month. This has outpaced the Consumer Discretionary sector's loss of 0.49% and the S&P 500's gain of 5.68% 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 $0.78 per share, which would represent a year-over-year decline of 15.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.89 billion, up 4.16% from the year-ago period.

BJ's full-year Zacks Consensus Estimates are calling for earnings of $2.94 per share and revenue of $15.84 billion. These results would represent year-over-year changes of -4.85% and +2.63%, respectively.

Investors might also notice recent changes to analyst estimates for BJ. Recent revisions tend to reflect the latest near-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. 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 has moved 0.49% higher within the past month. BJ currently has a Zacks Rank of #2 (Buy).

In terms of valuation, BJ is currently trading at a Forward P/E ratio of 19.89. This represents a premium compared to its industry's average Forward P/E of 19.03.

Also, we should mention that BJ has a PEG ratio of 2.36. 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. Consumer Services - Miscellaneous stocks are, on average, holding a PEG ratio of 1.94 based on yesterday's closing prices.

The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 32% 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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