Back to top

Image: Bigstock

Has BJ's Wholesale Club (BJ) Outpaced Other Consumer Discretionary Stocks 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. Has BJ's Wholesale Club (BJ - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.

BJ's Wholesale Club is one of 290 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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 #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for BJ's full-year earnings has moved 0.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that BJ has returned about 4.2% since the start of the calendar year. Meanwhile, stocks in the Consumer Discretionary group have lost about 30.5% on average. This means that BJ's Wholesale Club is outperforming the sector as a whole this year.

One other Consumer Discretionary stock that has outperformed the sector so far this year is Funko-A (FNKO - Free Report) . The stock is up 31.4% year-to-date.

The consensus estimate for Funko-A's current year EPS has increased 5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, BJ's Wholesale Club belongs to the Consumer Services - Miscellaneous industry, a group that includes 14 individual companies and currently sits at #67 in the Zacks Industry Rank. This group has lost an average of 11.9% so far this year, so BJ is performing better in this area.

Funko-A, however, belongs to the Consumer Products - Discretionary industry. Currently, this 28-stock industry is ranked #201. The industry has moved -32.2% so far this year.

BJ's Wholesale Club and Funko-A could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.


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 >>

Funko, Inc. (FNKO) - free report >>

Published in