Expert Outlook: BJ's Wholesale Club Through The Eyes Of 7 Analysts

7 analysts have expressed a variety of opinions on BJ's Wholesale Club BJ over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $83.71, a high estimate of $92.00, and a low estimate of $75.00. This current average has increased by 7.32% from the previous average price target of $78.00.

Diving into Analyst Ratings: An In-Depth Exploration

A clear picture of BJ's Wholesale Club's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to BJ's Wholesale Club. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, 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.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of BJ's Wholesale Club's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on BJ's Wholesale Club analyst ratings.

About 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 come from grocery items and general merchandise, with the remaining 20% coming from gasoline and other ancillary services.

BJ's Wholesale Club's Economic Impact: An Analysis

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: BJ's Wholesale Club displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 4.87%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Consumer Staples sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: BJ's Wholesale Club's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.79% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): BJ's Wholesale Club's ROE stands out, surpassing industry averages. With an impressive ROE of 9.11%, 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 2.11%. This signifies efficient management of assets and strong financial health.

Debt Management: BJ's Wholesale Club's debt-to-equity ratio stands notably higher than the industry average, reaching 1.71. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.