BJ's Wholesale Club Holdings, Inc. BJ has announced the opening of its 250th club in Louisville, KY, scheduled for Jan. 31, 2025. This new club marks the company’s first location in Kentucky and expands its presence into the 21st state. The new Louisville club also features an on-site BJ’s Gas station, providing members with everyday low fuel prices and the opportunity to save even more through the BJ’s Fuel Saver Program.

BJ’s Wholesale's Exceptional Value & Convenience

BJ’s Wholesale continues to provide exceptional value and convenience to its members through a wide range of exclusive benefits. Members can enjoy savings of up to 25% off on regular grocery store prices every day, offering access to a diverse selection of products including fresh foods, produce, deli items, bakery goods, household essentials, pet supplies, tech gadgets, home décor, toys and more. BJ offers a risk-free shopping experience, backed by its 100% money-back membership guarantee.

To maximize savings further, members can stack BJ’s coupons with manufacturers' coupons, ensuring they get the best deals possible. BJ’s Gas stations also provide low fuel prices with additional savings through the BJ’s Fuel Saver Program.

BJ’s Wholesale offers a seamless shopping experience, both online and in-store. Members can take advantage of convenient services such as curbside pickup, in-club pickup, same-day delivery and standard delivery through BJs.com. In-store shoppers can utilize the BJ’s mobile app with its ExpressPay feature, which allows for quick and easy scanning of items to skip the checkout line and save time.

BJ’s Wholesale’s Growth Drivers & Strategic Focus

BJ’s Wholesale is well-positioned for continued growth, fueled by several key strategic initiatives and promising prospects. The company’s focus on expanding its own-brand portfolio and enhancing BJ’s omnichannel capabilities has led to a notable increase in membership signups and renewals. This momentum resulted in an 8.4% year-over-year rise in membership fee income for the third quarter of fiscal 2024, with total membership reaching 7.5 million, a 40% increase since 2018.

BJ has shown impressive performance with strong traffic, higher unit volumes and gains in market share. Comparable club sales (excluding gas) saw a 3.8% increase in the fiscal third quarter, driven by traffic, which contributed more than 4 percentage points to the growth. 

The company’s digital transformation efforts are yielding results with 30% growth in digitally enabled comp sales in the fiscal third quarter, driven by conveniences like buy-online-pickup-in-club, curbside pickup and same-day delivery. Seasonal merchandise recovery, outperforming fuel business growth and enhanced credit card programs further highlight BJ’s ability to adapt to evolving consumer needs. These initiatives, supported by a scalable operating model and a commitment to convenience and value, position BJ for long-term success.

Performance of BJ’s Wholesale and Its Industry

In the past three months, BJ shares have gained 14%, outpacing the industry and the S&P 500’s growth of 1% and 4.4%, respectively.

BJ Stock Past Three Months Performance

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While the BJ stock has delivered a strong performance, its valuation remains a key factor for consideration. The stock is currently trading at a premium compared with the industry average, with a forward 12-month price-to-earnings ratio of 23.31, well above the industry’s average of 7.47.

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For long-term investors, retaining this Zacks Rank #3 (Hold) stock might still be a viable option. However, prospective investors may want to wait for a more favorable entry point, given the stock's current higher valuation.

Stocks to Consider

Freshpet Inc. FRPT manufactures, distributes and markets natural fresh meals and treats for dogs and cats. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings indicates growth of 27.2% and 228.6%, respectively, from the prior-year reported levels. FRPT delivered a trailing four-quarter earnings surprise of 144.5%, on average.

United Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. The company currently sports a Zacks Rank #1. UNFI delivered a trailing four-quarter earnings surprise of 553.1%, on average. 

The Zacks Consensus Estimate for United Natural Foods’ current-financial year’s sales and earnings indicates growth of 0.3% and 442.9%, respectively, from the year-ago reported number.

The Simply Good Foods Company SMPL, a consumer-packaged food and beverage company, engages in the development, marketing, and sale of snacks, meal replacements and other products in North America and internationally. It currently carries a Zacks Rank #2 (Buy). SMPL delivered a trailing four-quarter earnings surprise of 5.7%, on average. 

The Zacks Consensus Estimate for Simply Good Foods’ current fiscal-year sales and earnings indicates growth of 9.4% and 4.4%, respectively, from the prior-year reported levels.

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BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report

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