Where BJ's Wholesale Club Stands With Analysts

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Ratings for BJ's Wholesale Club BJ were provided by 9 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

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 5 1 3 0 0
Last 30D 0 1 0 0 0
1M Ago 0 0 0 0 0
2M Ago 1 0 1 0 0
3M Ago 4 0 2 0 0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $105.44, a high estimate of $115.00, and a low estimate of $87.00. Witnessing a positive shift, the current average has risen by 9.58% from the previous average price target of $96.22.

price target chart

Interpreting Analyst Ratings: A Closer Look

The standing of BJ's Wholesale Club among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below 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
Edward Kelly Wells Fargo Raises Overweight $115.00 $100.00
Paul Lejuez Citigroup Raises Neutral $101.00 $94.00
Oliver Chen TD Cowen Raises Buy $115.00 $110.00
Bill Kirk Roth MKM Raises Neutral $87.00 $75.00
Mark Carden UBS Raises Buy $108.00 $102.00
Oliver Chen TD Cowen Raises Buy $110.00 $95.00
Simeon Gutman Morgan Stanley Raises Equal-Weight $98.00 $90.00
Stephanie Wissink Jefferies Raises Buy $110.00 $105.00
Corey Tarlowe Jefferies Raises Buy $105.00 $95.00

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: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of BJ's Wholesale Club compared to the broader market.
  • Price Targets: Gaining insights, analysts provide estimates for the future value of BJ's Wholesale Club's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of BJ's Wholesale Club's market position. Stay informed and make well-informed decisions with our Ratings Table.

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

All You Need to Know 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 7,000 stock-keeping units at its warehouses 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 Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, BJ's Wholesale Club showcased positive performance, achieving a revenue growth rate of 3.55% as of 31 October, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Staples sector.

Net Margin: BJ's Wholesale Club's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 3.05%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): BJ's Wholesale Club's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.12% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.2%, the company showcases effective utilization of assets.

Debt Management: BJ's Wholesale Club's debt-to-equity ratio surpasses industry norms, standing at 1.61. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per 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.

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

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