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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 at $62.32 in the latest trading session, marking a +1.53% move from the prior day. This move outpaced the S&P 500's daily gain of 1.5%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.52%.

Heading into today, shares of the wholesale membership warehouse operator had gained 4.57% over the past month, outpacing the Consumer Discretionary sector's loss of 2.57% and the S&P 500's loss of 3.75% in that time.

BJ's Wholesale Club will be looking to display strength as it nears its next earnings release, which is expected to be March 3, 2022. In that report, analysts expect BJ's Wholesale Club to post earnings of $0.74 per share. This would mark year-over-year growth of 5.71%. Meanwhile, our latest consensus estimate is calling for revenue of $4.41 billion, up 11.65% from the prior-year quarter.

Any recent changes to analyst estimates for BJ's Wholesale Club should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. BJ's Wholesale Club is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note BJ's Wholesale Club's current valuation metrics, including its Forward P/E ratio of 18.07. This valuation marks a premium compared to its industry's average Forward P/E of 11.14.

Investors should also note that BJ has a PEG ratio of 1.8 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. BJ's industry had an average PEG ratio of 1.12 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 225, putting it in the bottom 12% 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.

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