#5 - BJ's Wholesale Club (NYSE:BJ)
BJ’s Wholesale Club (NYSE:BJ)
BJ’s Wholesale Club is a small regional warehouse club operating in 17 eastern states. The pandemic was a game-changing event for them, too, in that it not only boost sales but elevated the company to a household name. There’s no dividend with this stock, but there is a growth outlook, and what a value! Trading only 17X its earnings, it’s a value compared to Walmart (26X earnings ) and a DEEP value compared to Costco (46X earnings).
The 2nd quarter earnings report was stellar. BJ’s Wholesale club reported 17.9% YOY revenue growth to beat consensus by 500 basis points. Comp sales ex-gas increased by 24%, showing the true strength of the core business. The company did not offer any formal guidance but had this to say in its statement.
"Our business has been transformed and strengthened in the last six months by every measure. We are extremely well-positioned to continue to win as we invest in digital capabilities, membership, assortment, marketing, and geographic expansion to accelerate this transformation further,"
About BJ's Wholesale Club
BJ's Wholesale Club Holdings, Inc, together with its subsidiaries, operates warehouse clubs on the eastern half of the United States. It provides groceries, general merchandise, gasoline and other ancillary services, coupon books, and promotions. The company sells its products through the websites BJs.com, BerkleyJensen.com, and Wellsleyfarms.com, as well as the mobile app.
Read More - Current Price
- $96.74
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 10 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $92.50 (4.4% Downside)
