BJ's Wholesale Club (BJ) Dips More Than Broader Markets: What You Should Know

BJ's Wholesale Club (BJ) closed the most recent trading day at $59.40, moving -0.98% from the previous trading session. This change lagged the S&P 500's daily loss of 0.97%. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq added 0.23%.

Prior to today's trading, shares of the wholesale membership warehouse operator had lost 6.1% over the past month. This has lagged the Consumer Discretionary sector's loss of 2.74% and the S&P 500's loss of 0.78% 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. Our most recent consensus estimate is calling for quarterly revenue of $4.4 billion, up 11.46% 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 +9.01%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for BJ's Wholesale Club. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. 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 18.88. For comparison, its industry has an average Forward P/E of 11.37, which means BJ's Wholesale Club is trading at a premium to the group.

Investors should also note that BJ has a PEG ratio of 1.89 right now. 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 1.33 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 102, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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

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