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In the latest trading session, BJ’s Wholesale Club (BJ) closed at $64.88, marking a +0.43% move from the previous day. This move outpaced the S&P 500’s daily loss of 1.42%. Elsewhere, the Dow lost 0.49%, while the tech-heavy Nasdaq lost 0.47%.
– Zacks
Coming into today, shares of the wholesale membership warehouse operator had lost 4.72% in the past month. In that same time, the Consumer Discretionary sector lost 2.06%, while the S&P 500 gained 0.39%.
Wall Street will be looking for positivity from BJ’s Wholesale Club as it approaches its next earnings report date. The company is expected to report EPS of $0.75, up 7.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.39 billion, up 11.33% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.18 per share and revenue of $16.82 billion. These totals would mark changes of +2.91% and +8.99%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for BJ’s Wholesale Club. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BJ’s Wholesale Club is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note BJ’s Wholesale Club’s current valuation metrics, including its Forward P/E ratio of 20.31. This valuation marks a premium compared to its industry’s average Forward P/E of 11.43.
It is also worth noting that BJ currently has a PEG ratio of 2.03. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Consumer Services – Miscellaneous industry currently had an average PEG ratio of 1.37 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 105, putting it in the top 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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