BJ’s Wholesale Club Holdings, Inc. BJ is one of the most successful players in the midst of the pandemic, thanks to its strong fundamentals and growth efforts that strengthen its position in the ultra-competitive environment. Impressively, the shares of this warehouse club operator have climbed 55.6% so far in the year compared to industrydown 14.4%.
The Westborough, MA-based company also comfortably outperformed the S&P 500 Index, which rose 21.2% during the aforementioned period. The stock is hovering near its 52-week high of $ 59.81. BJ’s wholesale club, with a long-term profit growth rate of 8.2%, is likely to reach new highs. A VGM score de A highlights the upside potential of this Zacks Rank # 1 (Strong Buy) stock. You can see The full list of today’s Zacks # 1 Rank stocks here.
Notably, Zacks’ consensus estimate for current year and next year earnings per share rose 1.4% and 2.3% to $ 2.92 and 3.16, respectively, in the last 30 days.
This bull run has momentum
BJ’s Wholesale focus on simplifying assortments, building marketing and merchandising capabilities, expanding into high demand categories as well as building a portfolio of own brands bodes well. The company remains committed to improving omnichannel capabilities and delivering value to customers. These efforts have contributed to the growth in registrations and membership renewals, which has resulted in increased revenue from membership dues, an increase in the average number of members per club, and decent sales growth for comparable clubs.
He directed resources toward expanding digital capabilities to better interact with members and provide them with a convenient way to shop, including same day delivery, curbside pickup and online shopping. line, club pickup (BOPIC). Management estimates that digitally engaged members have higher average baskets and take more trips per year than members who buy only from the club.
Image source: Zacks Investment Research
The company has built a strong digital portfolio with Bjs.com, BerkleyJensen.com, Wellsleyfarms.com, delivery.bjs.com and the BJ mobile app. This allows members to purchase, review products, and digitally add coupons to their membership card. Notably, the company has launched curbside pickup and expanded the BOPIC service for fresh and frozen grocery items at all of its locations.
Additionally, BJ’s Wholesale has an exclusive three-year agreement with CommerceHub, a leading e-commerce platform that enables order fulfillment and online delivery solutions. The company’s partnership with Citizens Pay to provide online finance solutions for large purchases is also encouraging. At some clubs, shoppers can use their EBT card for SNAP qualified items at checkout, when shopping at BJs.com for in-club pickup or curb contactless pickup.
BJ’s Wholesale spares no effort to improve premium performance and expand customer base, whether through better prices, private label offerings, merchandise initiatives or digital solutions. These efforts have contributed to the growth of registrations and renewals of members. Management said strong membership trends, assortment initiatives, enhanced digital capabilities and a strong real estate pipeline will help the company maintain exceptional long-term growth. Notably, Zacks’ consensus estimate for current year and next year sales shows an improvement of 3.8% and 6.2%, respectively, compared to the prior year period. .
3 actions to consider
Kroger KR shows a long-term profit growth rate of 8.9%. He currently sports a Zacks Rank # 1.
Walmart WMT has a surprise earnings over the past four quarters of 14.3%, on average. The stock carries a Zacks Rank # 2 (Buy).
Costco COST shows a long-term profit growth rate of 8.6%. He currently wears a Zacks Rank # 2.
5 actions in the process of doubling
Each was selected by a Zacks expert as the # 1 favorite stock to earn + 100% or more in 2021. Previous recommendations climbed + 143.0%, + 175.9%, + 498.3% and + 673.0%.
Most of the stock in this report is flying under Wall Street’s radar, which provides a great opportunity to get into the ground floor.
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