It is Poised to be a Bull Market for BJ’s Wholesale Club Holdings Inc. (BJ)

BJ’s Wholesale Club Holdings Inc. (NYSE: BJ) stock fell -1.18% on Thursday to $62.77 against a previous-day closing price of $63.52. With 3.63 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.67 million shares. The 52-week range on BJ shows that it touched its highest point at $80.41 and its lowest point at $53.86 during that stretch. It currently has a 1-year price target of $85.00. Beta for the stock currently stands at 0.49.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BJ was down-trending over the past week, with a drop of -11.50%, but this was down by -17.49% over a month. Three-month performance dropped to -14.56% while six-month performance fell -14.92%. The stock gained 15.32% in the past year, while it has lost -5.12% so far this year. A look at the trailing 12-month EPS for BJ yields 3.77 with Next year EPS estimates of 4.28. For the next quarter, that number is 1.07. This implies an EPS growth rate of 21.90% for this year and 8.03% for next year. EPS is expected to grow by 6.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 88.70%.

Float and Shares Shorts:

At present, 133.79 million BJ shares are outstanding with a float of 133.64 million shares on hand for trading. On Apr 27, 2023, short shares totaled 3.7 million, which was 2.75% higher than short shares on Mar 30, 2023. In addition to Mr. Robert W. Eddy as the firm’s Pres, CEO & Director, Ms. Laura L. Felice CPA, CGMA serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 98.49% of BJ’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.96% of BJ, in contrast to 45.44% held by mutual funds. Shares owned by individuals account for 11.12%. As the largest shareholder in BJ with 10.11% of the stake, The Vanguard Group, Inc. holds 13,543,635 shares worth 13,543,635. A second-largest stockholder of BJ, BlackRock Fund Advisors, holds 11,001,929 shares, controlling over 8.22% of the firm’s shares. Putnam Investment Management LLC is the third largest shareholder in BJ, holding 4,556,260 shares or 3.40% stake. With a 3.13% stake in BJ, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 4,195,043 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.11% of BJ stock, is the second-largest Mutual Fund holder. It holds 4,169,237 shares valued at 318.4 million. Vanguard Small Cap Index Fund holds 2.63% of the stake in BJ, owning 3,516,875 shares worth 268.58 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Apr 28, 2023, BJ reported revenue of $4.50B and operating income of $150.32M. The EBITDA in the recently reported quarter was $197.43M and diluted EPS was $0.82.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BJ since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With BJ analysts setting a high price target of $97.00 and a low target of $62.00, the average target price over the next 12 months is $79.28. Based on these targets, BJ could surge 54.53% to reach the target high and fall by -1.23% to reach the target low. Reaching the average price target will result in a growth of 26.3% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded BJ stock several times over the past three months with 13 Buys and 14 Sells. In these transactions, 440,463 shares were bought while 242,130 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 52 over the past year. The total number of shares bought during that period was 508,906 while 408,090 shares were sold.

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