The shares of BJ's Wholesale Club Inc. (BJ), a leading warehouse club operator in the United States, rose 7.1% or $3.15 to $47.62 on Wednesday, when speculations of a hostile takeover bid spread across the market.

According to the New York Post, a private-equity firm, Leonard Green & Partners may make an attempt to acquire the company, if BJ's does not commence a sales auction, as planned. Earlier, the Post had reported that BJ's has been exploring strategic alternatives, including a possible sale and hired Morgan Stanley as an advisor in November.

As a warehouse club, BJ's is uniquely positioned to drive traffic as it offers wider assortments of brands at compelling prices by carrying approximately 7,200 stock keeping units (SKUs) compared to 4,000–5,000 SKUs carried by its competitors, as well as offering its customers the choice of bulk or consumer-friendly package sizes.

Currently, we prefer to be 'Neutral' on BJ's Wholesale. The Zacks #3 Rank, which translates into a short-term 'Hold' recommendation, correlates with our long-term view.