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

In the latest trading session, BJ's Wholesale Club (BJ) closed at $76.69, marking a -1.26% move from the previous day. This change lagged the S&P 500's daily gain of 1.36%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq lost 0.06%.

Prior to today's trading, shares of the wholesale membership warehouse operator had gained 8.9% over the past month. This has outpaced the Consumer Discretionary sector's gain of 3.66% and the S&P 500's gain of 1.2% in that time.

BJ's Wholesale Club will be looking to display strength as it nears its next earnings release, which is expected to be November 17, 2022. On that day, BJ's Wholesale Club is projected to report earnings of $0.80 per share, which would represent a year-over-year decline of 12.09%. Our most recent consensus estimate is calling for quarterly revenue of $4.62 billion, up 8.34% from the year-ago period.

BJ's full-year Zacks Consensus Estimates are calling for earnings of $3.60 per share and revenue of $19.05 billion. These results would represent year-over-year changes of +10.77% and +14.3%, respectively.

Any recent changes to analyst estimates for BJ's Wholesale Club should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 0.19% higher within the past month. BJ's Wholesale Club is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, BJ's Wholesale Club is holding a Forward P/E ratio of 21.59. This valuation marks a premium compared to its industry's average Forward P/E of 10.96.

Meanwhile, BJ's PEG ratio is currently 2.32. 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 was holding an average PEG ratio of 1.6 at yesterday's closing price.

The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.