Assessing BJ's Wholesale Club Hldgs: Insights From 20 Financial Analysts
In the last three months, 20 analysts have published ratings on BJ's Wholesale Club Hldgs (NYSE:BJ), offering a diverse range of perspectives from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 7 | 3 | 10 | 0 | 0 |
| Last 30D | 2 | 2 | 2 | 0 | 0 |
| 1M Ago | 1 | 0 | 1 | 0 | 0 |
| 2M Ago | 1 | 0 | 1 | 0 | 0 |
| 3M Ago | 3 | 1 | 6 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $122.0, a high estimate of $140.00, and a low estimate of $101.00. Surpassing the previous average price target of $110.65, the current average has increased by 10.26%.
Diving into Analyst Ratings: An In-Depth Exploration
The perception of BJ's Wholesale Club Hldgs by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Mark Carden | UBS | Raises | Buy | $135.00 | $129.00 |
| Michael Baker | DA Davidson | Raises | Buy | $140.00 | $130.00 |
| Peter Benedict | Baird | Raises | Outperform | $130.00 | $125.00 |
| Edward Kelly | Wells Fargo | Raises | Overweight | $127.00 | $125.00 |
| Laura Champine | Loop Capital | Raises | Hold | $120.00 | $110.00 |
| Simeon Gutman | Morgan Stanley | Raises | Equal-Weight | $125.00 | $115.00 |
| Mark Carden | UBS | Lowers | Buy | $129.00 | $130.00 |
| Christopher Horvers | JP Morgan | Raises | Neutral | $123.00 | $109.00 |
| Paul Lejuez | Citigroup | Raises | Buy | $130.00 | $115.00 |
| Greg Melich | Evercore ISI Group | Lowers | In-Line | $110.00 | $115.00 |
| Kate McShane | Goldman Sachs | Raises | Buy | $121.00 | $102.00 |
| Karen Short | Barclays | Raises | Equal-Weight | $115.00 | $80.00 |
| Michael Baker | DA Davidson | Raises | Buy | $130.00 | $123.00 |
| Laura Champine | Loop Capital | Raises | Hold | $110.00 | $95.00 |
| Simeon Gutman | Morgan Stanley | Raises | Equal-Weight | $115.00 | $98.00 |
| Christopher Horvers | JP Morgan | Raises | Neutral | $109.00 | $101.00 |
| Mark Carden | UBS | Raises | Buy | $130.00 | $108.00 |
| Paul Lejuez | Citigroup | Raises | Neutral | $115.00 | $101.00 |
| Peter Benedict | Baird | Raises | Outperform | $125.00 | $115.00 |
| Christopher Horvers | JP Morgan | Raises | Neutral | $101.00 | $87.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to BJ's Wholesale Club Hldgs. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of BJ's Wholesale Club Hldgs compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for BJ's Wholesale Club Hldgs's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
For valuable insights into BJ's Wholesale Club Hldgs's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on BJ's Wholesale Club Hldgs analyst ratings.
About BJ's Wholesale Club Hldgs
BJ's Wholesale serves as one of the few warehouse club chains in the United States. Its 250 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 Hldgs: Delving into Financials
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Negative Revenue Trend: Examining BJ's Wholesale Club Hldgs's financials over 3M reveals challenges. As of 31 January, 2025, the company experienced a decline of approximately -1.47% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Staples sector.
Net Margin: BJ's Wholesale Club Hldgs's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 2.32%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 6.8%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): BJ's Wholesale Club Hldgs's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.72%, the company may face hurdles in achieving optimal financial performance.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.54, caution is advised due to increased financial risk.
The Core of Analyst Ratings: What Every Investor Should Know
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
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