Back to top

Image: Bigstock

Is BJ's Wholesale Club (BJ) Stock Outpacing Its Consumer Discretionary Peers This Year?

Read MoreHide Full Article

For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Is BJ's Wholesale Club (BJ - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

BJ's Wholesale Club is a member of our Consumer Discretionary group, which includes 288 different companies and currently sits at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. BJ's Wholesale Club is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for BJ's full-year earnings has moved 8.7% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, BJ has gained about 11% so far this year. Meanwhile, stocks in the Consumer Discretionary group have lost about 34.6% on average. As we can see, BJ's Wholesale Club is performing better than its sector in the calendar year.

Another stock in the Consumer Discretionary sector, New Oriental Education (EDU - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 24.8%.

In New Oriental Education's case, the consensus EPS estimate for the current year increased 105.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, BJ's Wholesale Club is a member of the Consumer Services - Miscellaneous industry, which includes 14 individual companies and currently sits at #92 in the Zacks Industry Rank. Stocks in this group have lost about 10.9% so far this year, so BJ is performing better this group in terms of year-to-date returns.

On the other hand, New Oriental Education belongs to the Schools industry. This 19-stock industry is currently ranked #197. The industry has moved -8.9% year to date.

Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to BJ's Wholesale Club and New Oriental Education as they could maintain their solid performance.


See More Zacks Research for These Tickers


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


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

New Oriental Education & Technology Group, Inc. (EDU) - free report >>

Published in