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

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BJ's Wholesale Club (BJ - Free Report) closed at $61.33 in the latest trading session, marking a -1.05% move from the prior day. This change lagged the S&P 500's 0.09% gain on the day.

Prior to today's trading, shares of the wholesale membership warehouse operator had gained 12% over the past month. This has outpaced the Consumer Discretionary sector's gain of 2.84% and the S&P 500's gain of 8.19% in that time.

BJ will be looking to display strength as it nears its next earnings release, which is expected to be November 18, 2021. In that report, analysts expect BJ to post earnings of $0.78 per share. This would mark 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.

Any recent changes to analyst estimates for BJ should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 has moved 0.49% higher. BJ is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, BJ is holding a Forward P/E ratio of 21.09. This represents a premium compared to its industry's average Forward P/E of 19.22.

It is also worth noting that BJ currently has a PEG ratio of 2.5. 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 1.61 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 194, putting it in the bottom 24% 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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