Expert Outlook: BJ's Wholesale Club Through The Eyes Of 4 Analysts

Analysts' ratings for BJ's Wholesale Club BJ over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $108.0, along with a high estimate of $115.00 and a low estimate of $101.00. Witnessing a positive shift, the current average has risen by 10.49% from the previous average price target of $97.75.

Interpreting Analyst Ratings: A Closer Look

The analysis of recent analyst actions sheds light on the perception of BJ's Wholesale Club by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to BJ's Wholesale Club. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into 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.

Discovering BJ's Wholesale Club: A Closer Look

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: A Financial Overview

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 revenue growth over a period of 3 months has been noteworthy. As of 31 October, 2024, the company achieved a revenue growth rate of approximately 3.55%. This indicates 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 a standout performer, exceeding industry averages. With an impressive net margin of 3.05%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): BJ's Wholesale Club's ROE excels beyond industry benchmarks, reaching 9.12%. This signifies robust financial management and efficient use of 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 stands notably higher than the industry average, reaching 1.61. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: What Are They?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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