We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BJ's Wholesale Club Q3 Preview: Can The Earnings Streak Continue?
Read MoreHide Full Article
The Zacks Consumer Discretionary sector has struggled to find its footing in 2022, down more than 30% and underperforming the general market by a fair margin.
A company residing in the realm that many are familiar with, BJ’s Wholesale Club (BJ - Free Report) , is on deck to unveil Q3 earnings on November 17th, before the market open.
BJ’s Wholesale Club operates warehouse clubs on the east coast of the United States. As of Jul 30, 2022, the company operated 229 warehouse clubs and 160 BJ's Gas stations in 17 states.
Currently, the company carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of an A.
How does everything else stack up heading into the print? Let’s take a closer look.
Share Performance & Valuation
Year-to-date, BJ shares have been a bright spot in an otherwise dim market, up nearly 17% and widely outperforming the S&P 500.
Image Source: Zacks Investment Research
Over the last month, BJ shares have continued their strength, up more than 9% and again outperforming the S&P 500.
Image Source: Zacks Investment Research
Buyers have defended BJ shares at a much higher level than most, something we can’t say for the majority of stocks in 2022.
Shares currently trade at a 21.8X forward earnings multiple, above the 18.1X five-year median by a fair margin and representing a 3% discount relative to its Zacks Consumer Discretionary sector.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bullish in their earnings outlook over the last several months, with three positive earnings estimate revisions hitting the tape. The Zacks Consensus EPS Estimate of $0.84 indicates a 7.7% Y/Y decrease in earnings.
Image Source: Zacks Investment Research
The company’s top-line is in better health; the Zacks Consensus Sales Estimate of $4.7 billion suggests an improvement of more than 10% from year-ago quarterly revenue of $4.3 billion.
Quarterly Performance
BJ is on a blazing-hot earnings streak, exceeding earnings and revenue estimates in six consecutive quarters.
Just in its latest release, the company registered a steep 27.7% EPS beat paired with an 8.9% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
BJ shares have outperformed the general market across several timeframes in 2022, indicating that buyers have been present all year long.
The company’s forward earnings multiple sits above its five-year median but below its Zacks sector average.
Analysts have been bullish regarding their bottom-line outlook, with estimates indicating a Y/Y decline in earnings but an uptick in revenue – a reflection of rising costs eating into margins.
The company has consistently surpassed quarterly expectations, with a sizable EPS beat coming in its latest release.
Heading into the print, BJ’s Wholesale Club (BJ - Free Report) carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 1.9%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
BJ's Wholesale Club Q3 Preview: Can The Earnings Streak Continue?
The Zacks Consumer Discretionary sector has struggled to find its footing in 2022, down more than 30% and underperforming the general market by a fair margin.
A company residing in the realm that many are familiar with, BJ’s Wholesale Club (BJ - Free Report) , is on deck to unveil Q3 earnings on November 17th, before the market open.
BJ’s Wholesale Club operates warehouse clubs on the east coast of the United States. As of Jul 30, 2022, the company operated 229 warehouse clubs and 160 BJ's Gas stations in 17 states.
Currently, the company carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of an A.
How does everything else stack up heading into the print? Let’s take a closer look.
Share Performance & Valuation
Year-to-date, BJ shares have been a bright spot in an otherwise dim market, up nearly 17% and widely outperforming the S&P 500.
Image Source: Zacks Investment Research
Over the last month, BJ shares have continued their strength, up more than 9% and again outperforming the S&P 500.
Image Source: Zacks Investment Research
Buyers have defended BJ shares at a much higher level than most, something we can’t say for the majority of stocks in 2022.
Shares currently trade at a 21.8X forward earnings multiple, above the 18.1X five-year median by a fair margin and representing a 3% discount relative to its Zacks Consumer Discretionary sector.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bullish in their earnings outlook over the last several months, with three positive earnings estimate revisions hitting the tape. The Zacks Consensus EPS Estimate of $0.84 indicates a 7.7% Y/Y decrease in earnings.
Image Source: Zacks Investment Research
The company’s top-line is in better health; the Zacks Consensus Sales Estimate of $4.7 billion suggests an improvement of more than 10% from year-ago quarterly revenue of $4.3 billion.
Quarterly Performance
BJ is on a blazing-hot earnings streak, exceeding earnings and revenue estimates in six consecutive quarters.
Just in its latest release, the company registered a steep 27.7% EPS beat paired with an 8.9% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
BJ shares have outperformed the general market across several timeframes in 2022, indicating that buyers have been present all year long.
The company’s forward earnings multiple sits above its five-year median but below its Zacks sector average.
Analysts have been bullish regarding their bottom-line outlook, with estimates indicating a Y/Y decline in earnings but an uptick in revenue – a reflection of rising costs eating into margins.
The company has consistently surpassed quarterly expectations, with a sizable EPS beat coming in its latest release.
Heading into the print, BJ’s Wholesale Club (BJ - Free Report) carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 1.9%.