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BJ's Wholesale Club (BJ) Stock Moves -0.03%: What You Should Know

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BJ's Wholesale Club (BJ - Free Report) closed the most recent trading day at $60.91, moving -0.03% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.44%. Meanwhile, the Dow lost 1.45%, and the Nasdaq, a tech-heavy index, lost 0.41%.

Heading into today, shares of the wholesale membership warehouse operator had lost 4.26% over the past month, outpacing the Consumer Discretionary sector's loss of 8.08% and lagging the S&P 500's loss of 3.72% in that time.

BJ's Wholesale Club will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.74, up 5.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.4 billion, up 11.46% from the year-ago period.

It is also important to note the recent changes to analyst estimates for BJ's Wholesale Club. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. BJ's Wholesale Club is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, BJ's Wholesale Club currently has a Forward P/E ratio of 17.92. Its industry sports an average Forward P/E of 10.99, so we one might conclude that BJ's Wholesale Club is trading at a premium comparatively.

Also, we should mention that BJ has a PEG ratio of 1.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BJ's industry had an average PEG ratio of 1.25 as of yesterday's close.

The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 40% 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.

To follow BJ in the coming trading sessions, be sure to utilize Zacks.com.


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