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

BJ's Wholesale Club (BJ) closed the most recent trading day at $59.86, moving -0.27% from the previous trading session. This move lagged the S&P 500's daily gain of 0.18%.

Prior to today's trading, shares of the wholesale membership warehouse operator had gained 3.52% over the past month. This has outpaced the Consumer Discretionary sector's loss of 0.52% and the S&P 500's gain of 2.96% in that time.

Investors will be hoping for strength from BJ as it approaches its next earnings release. On that day, BJ is projected to report earnings of $0.78 per share, which would represent a year-over-year decline of 15.22%. Meanwhile, our latest consensus estimate is calling for revenue of $3.89 billion, up 4.16% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.92 per share and revenue of $15.84 billion, which would represent changes of -5.5% and +2.63%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for BJ. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BJ is currently a Zacks Rank #3 (Hold).

Digging into valuation, BJ currently has a Forward P/E ratio of 20.52. This represents a premium compared to its industry's average Forward P/E of 19.56.

Investors should also note that BJ has a PEG ratio of 2.51 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BJ's industry had an average PEG ratio of 1.89 as of yesterday's close.

The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 24% 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.

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

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