BJ's Wholesale Club Holdings, Inc. BJ has announced the opening of its 40th club in Florida. The new club includes an on-site BJ’s Gas station, offering everyday low fuel prices and additional savings through its Fuel Saver Program.
This latest opening in St. Johns indicates BJ’s broader expansion strategy. BJ's Wholesale Club continues its growth momentum, having opened three new clubs and four gas stations in the third quarter of fiscal 2024. The company is on track to surpass its goal of 250 clubs by the end of the fiscal year. With strategic investments in new locations and gas stations, BJ’s is well-positioned to drive sustained growth.
BJ's Exclusive Savings and Convenient Shopping Options
BJ's Wholesale offers a range of exclusive benefits, designed to provide exceptional value and convenience to its members. With savings of up to 25% on grocery store prices every day, members can shop for fresh foods, produce, deli items, bakery goods, household essentials, home décor, pet supplies, toys, tech and more. Moreover, shoppers can experience BJ’s risk-free, backed by its 100% money-back membership guarantee.
Members can further maximize their savings by combining BJ’s coupons with manufacturers’ coupons. With its 182 Gas locations, members also enjoy low fuel prices and even greater savings through the BJ’s Fuel Saver Program.
BJ's Wholesale offers members a seamless shopping experience, both online and in-club. Members can choose from curbside pick-up, in-club pick-up, same-day delivery or standard delivery via BJs.com. For in-club shoppers, BJ’s mobile app features ExpressPay, enabling members to scan items while shopping and bypass the checkout line.
Key Growth Factors for BJ's Wholesale
BJ's Wholesale Club continues to drive growth by simplifying assortments, enhancing marketing and merchandising capabilities, and expanding into high-demand categories. The company’s focus on building its own-brand portfolio and strengthening omnichannel capabilities has boosted membership signups and renewals, leading to an 8.4% year-over-year increase in membership-fee income in the third quarter of fiscal 2024. Membership reached a milestone of 7.5 million, driven by strong renewal rates and successful member acquisition strategies.
The company has also delivered solid operational performance, evidenced by robust traffic, higher unit volumes and market share gains. Comparable club sales (excluding gas) grew 3.8% in the fiscal third quarter, with traffic contributing more than 4 percentage points to the increase. Despite challenges such as the East Coast port strike and hurricanes, BJ’s exceeded expectations, showcasing the resilience and strength of its business model.
BJ Outpaces Industry in Performance
In the past three months, BJ’s shares have gained 15.4%, outpacing the industry’s decline of 1.8% and the S&P 500’s growth of 3.3%.
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BJ's Wholesale stock has been a strong performer, yet its valuation is still a subject of discussion. Currently, the stock is priced at a premium compared with the industry average. The company’s price-to-earnings ratio indicates that its growth potential may already be factored into price. BJ's forward 12-month price-to-earnings ratio is 22.59X, higher than the industry’s ratio of 7.33X.
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While long-term investors may consider holding onto this Zacks Rank #3 (Hold) stock, potential investors should seek a more favorable entry point due to its current higher valuation.
Stocks to Consider
Sprouts Farmers Market, Inc. SFM engages in the retailing of fresh, natural, and organic food products under the Sprouts brand in the United States. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SFM delivered a trailing four-quarter earnings surprise of 15.3%, on average. The Zacks Consensus Estimate for Sprouts Farmers’ current-financial year’s sales and earnings indicates growth of 12.2% and 29.6%, respectively, from the year-ago reported number.
Freshpet Inc. FRPT manufactures, distributes and markets natural fresh meals and treats for dogs and cats. It currently carries a Zacks Rank #2 (Buy). FRPT delivered a trailing four-quarter earnings surprise of 144.5%, on average.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings indicates growth of 27.3% and 228.6%, respectively, from the prior-year reported levels.
US Foods Holding Corp. USFD engages in marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. It currently carries a Zacks Rank #2. USFD delivered an earnings surprise of 3.7% in the last reported quarter.
The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings indicates growth of 6.4% and 18.6%, respectively, from the prior-year reported levels.
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Free: See Our Top Stock And 4 Runners UpBJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
Freshpet, Inc. (FRPT) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
US Foods Holding Corp. (USFD) : Free Stock Analysis Report
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