Analysts' ratings for BJ's Wholesale Club BJ over the last quarter vary from bullish to bearish, as provided by 11 analysts.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 1 | 4 | 2 | 0 |
| Last 30D | 0 | 0 | 0 | 1 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 2 | 0 | 0 |
| 3M Ago | 4 | 1 | 2 | 1 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $87.91, with a high estimate of $97.00 and a low estimate of $74.00. Witnessing a positive shift, the current average has risen by 5.57% from the previous average price target of $83.27.
Deciphering Analyst Ratings: An In-Depth Analysis
An in-depth analysis of recent analyst actions unveils how financial experts perceive BJ's Wholesale Club. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Christopher Horvers | JP Morgan | Raises | Underweight | $76.00 | $74.00 |
| Laura Champine | Loop Capital | Raises | Hold | $85.00 | $80.00 |
| Greg Melich | Evercore ISI Group | Raises | In-Line | $89.00 | $86.00 |
| Christopher Horvers | JP Morgan | Raises | Underweight | $74.00 | $70.00 |
| Karen Short | Barclays | Raises | Equal-Weight | $80.00 | $72.00 |
| Oliver Chen | TD Cowen | Raises | Buy | $95.00 | $93.00 |
| Mark Carden | UBS | Raises | Buy | $97.00 | $89.00 |
| Greg Melich | Evercore ISI Group | Raises | In-Line | $86.00 | $80.00 |
| Michael Baker | DA Davidson | Raises | Buy | $95.00 | $92.00 |
| Peter Benedict | Baird | Raises | Outperform | $95.00 | $90.00 |
| Robert Ohmes | B of A Securities | Raises | Buy | $95.00 | $90.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to BJ's Wholesale Club. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of BJ's Wholesale Club compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of BJ's Wholesale Club's stock. This comparison reveals trends in analysts' expectations over time.
To gain a panoramic view of BJ's Wholesale Club's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on BJ's Wholesale Club analyst ratings.
Unveiling the Story Behind BJ's Wholesale Club
BJ's Wholesale serves as one of the few warehouse club chains in the United States. Its more than 240 warehouses are primarily located along the East Coast, most prominently in the New England area. Similar to its warehouse club peers, BJ's charges annual membership fees and keeps costs down by operating a "no-frills" store environment. The company limits the use of distribution centers where possible and stores inventory on pallets directly on the sales floor, often in bulk quantities. The company also offers a limited assortment of stock-keeping units at its warehouses (around 7,000) to achieve greater procurement scale on select items. About 80% of BJ's net sales stem from grocery items and general merchandise, with the remaining 20% coming from gasoline and other ancillary services.
BJ's Wholesale Club's Financial Performance
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: BJ's Wholesale Club's remarkable performance in 3 months is evident. As of 30 April, 2024, the company achieved an impressive revenue growth rate of 4.14%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 2.26%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): BJ's Wholesale Club's ROE stands out, surpassing industry averages. With an impressive ROE of 7.44%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): BJ's Wholesale Club's ROA excels beyond industry benchmarks, reaching 1.64%. This signifies efficient management of assets and strong financial health.
Debt Management: BJ's Wholesale Club's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.9, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Understanding the Relevance of Analyst Ratings
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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