BJ’s Wholesale Club (BJ) Stock Moves -1%: What You Need to Know

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IIn the last trading session, BJ’s Wholesale Club (BJ) closed at $67.37, marking a -1% move from the previous day. That change was narrower than the S&P 500’s 1.21% daily loss. Meanwhile, the Dow lost 0.33% and the Nasdaq, a technology-heavy index, lost 0.49%.

Prior to today’s trading, shares of the member wholesale warehouse operator had gained 6.46% in the past month. This outpaced the consumer discretionary sector’s gain of 4.92% and the S&P 500’s gain of 5.85% during this period.

Wall Street will be looking for positivity from BJ’s Wholesale Club as its next earnings release date approaches. The company is expected to post EPS of $0.72, unchanged from the prior year quarter. Meanwhile, Zacks’ consensus estimate for revenue calls for net sales of $4.16 billion, up 7.61% from the year-ago period.

Looking to the full year, our Zacks consensus estimates suggest analysts are expecting earnings of $3.27 per share and revenue of $17.65 billion. These totals would mark changes of +0.62% and +5.87%, respectively, from last year.

Any recent changes in analyst estimates for BJ’s Wholesale Club should also be noted by investors. These revisions generally reflect the latest short-term trading trends, which may change frequently. Thus, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.

Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. Investors can take advantage of this by using the Zacks ranking. This model accounts for these estimation changes and provides a simple and actionable scoring system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance verified by external audits, with #1 stocks generating an average annual return of +25% since 1988 The Zacks Consensus EPS estimate has remained flat over the past month. BJ’s Wholesale Club currently has a Zacks rank of #3 (Hold).

Digging into the valuation, BJ’s Wholesale Club currently has a Forward P/E ratio of 20.8. For comparison, his industry has an average Forward P/E of 12.16, which means BJ’s Wholesale Club is trading at a premium to the group.

We can also see that BJ currently has a PEG ratio of 2.65. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. BJ’s industry had an average PEG ratio of 1.28 at yesterday’s close.

The Consumer Services – Miscellaneous industry is part of the Consumer Discretionary sector. This industry currently has a Zacks industry ranking of 171, which places it in the bottom 33% of all 250+ industries.

The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and more, at Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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