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

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In the latest trading session, BJ's Wholesale Club (BJ - Free Report) closed at $64.12, marking a -0.5% move from the previous day. This move lagged the S&P 500's daily gain of 0.51%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 0.1%.

Heading into today, shares of the wholesale membership warehouse operator had gained 3.4% over the past month, outpacing the Consumer Discretionary sector's loss of 1.01% and lagging the S&P 500's gain of 5.51% in that time.

Investors will be hoping for strength from BJ's Wholesale Club as it approaches its next earnings release. In that report, analysts expect BJ's Wholesale Club to post earnings of $0.72 per share. This would mark no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.18 billion, up 8.13% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.27 per share and revenue of $17.81 billion, which would represent changes of +0.62% and +6.83%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for BJ's Wholesale Club. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.72% lower. BJ's Wholesale Club is currently a Zacks Rank #3 (Hold).

Digging into valuation, BJ's Wholesale Club currently has a Forward P/E ratio of 19.7. This represents a premium compared to its industry's average Forward P/E of 12.09.

It is also worth noting that BJ currently has a PEG ratio of 2.51. 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. The Consumer Services - Miscellaneous industry currently had an average PEG ratio of 1.36 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 211, putting it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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