For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
BJ's Wholesale Club Holdings, Inc. has emerged as one of the preferred destinations for shoppers when it comes to essentials and other items. The company’s focus on simplifying assortments, expanding own-brands portfolio, enhancing digital capabilities and providing value to customers has contributed to growth in membership signups and renewals. The company carries approximately 7,200 active stock keeping units. Notably, the company consistently offers 25% or more savings on a representative basket of manufacturer-branded groceries compared to traditional supermarket competitors.
BJ sits at a Zacks Rank #2 (Buy), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Consumer Services - Miscellaneous industry's P/E of 19.3X, shares of BJ's Wholesale Club are trading at a forward P/E of 26.6X. BJ also has a PEG Ratio of 4.5, a Price/Cash Flow ratio of 18.5X, and a Price/Sales ratio of 0.7X.
A company's earnings performance is important for value investors as well. For fiscal 2026, four analysts revised their earnings estimate higher in the last 60 days for BJ, while the Zacks Consensus Estimate has increased $0.03 to $4.22 per share. BJ also holds an average earnings surprise of 12%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding BJ to their portfolios.
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BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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