Core Viewpoint - The investment strategy focuses on long-term investments while also utilizing short-term shorts to identify alpha opportunities through bottom-up analysis of individual companies' fundamentals [1] Group 1: Investment Strategy - The approach emphasizes medium to long-term investment duration [1] - The goal is to identify companies with strong fundamentals, sustainable competitive advantages, and growth potential [1]

Core Viewpoint - BJ's Wholesale Club is facing challenges in growth and competition, while TJX Companies presents a more attractive long-term investment opportunity due to its strong performance and adaptability in uncertain economic conditions [1][3]. BJ's Wholesale Club - BJ's stock is currently priced at $94.66 with a market cap of $12 billion and a year-to-date increase of 5% [2]. - The company reported a modest sales increase of 1.1% in the third quarter and 0.8% for the first nine months of fiscal year 2025 compared to the previous year [6]. - BJ's faces competition from larger players like Costco and Walmart, lacking the scale and international presence that these competitors have [7]. - The company operates fewer than 300 stores, primarily on the East Coast, which limits its market reach [7]. TJX Companies - TJX has seen a significant year-to-date stock increase of nearly 30% and has exceeded sales and margin expectations in its latest quarter [7]. - The company has raised its guidance for the upcoming year and anticipates a strong holiday season [7]. - TJX operates under an off-price retail model, which is particularly appealing in times of economic uncertainty as consumers seek discounts [9]. - The company reported a 1% increase in gross profit margins from the previous year's third quarter, indicating strong financial health [10].

Group 1 - BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) is rated as a 'Buy' or equivalent by slightly more than half of the analysts covering the stock, with a median price target of $115 indicating an upside potential of 23.44% [1] - The company reported its third-quarter results on November 21, achieving revenue in line with estimates and earnings $0.06 above guidance, with net sales increasing by 4.8% year over year [2] - Analysts have revised their outlook following the Q3 results, with UBS lowering its price target to $120 from $125 while maintaining a 'Buy' rating, and Baird reducing its target to $115 from $130 while keeping an 'Outperform' rating [3] Group 2 - BJ's Wholesale Club operates membership warehouse clubs primarily in the eastern United States and has been focusing on value and digital innovation to enhance consumer engagement [2][3]

Company Overview - BJ's Wholesale Club Holdings, Inc. (BJ) is experiencing significant attention from investors due to high implied volatility in its options market, particularly the Jan 16, 2026 $50 Call option [1] - The company currently holds a Zacks Rank 3 (Hold) in the Consumer Products – Staples industry, which is positioned in the Bottom 24% of the Zacks Industry Rank [3] Market Expectations - Implied volatility indicates that the market anticipates a substantial movement in BJ's stock price, suggesting potential upcoming events that could lead to significant price changes [2] - Over the past 30 days, the Zacks Consensus Estimate for BJ's current quarter earnings has decreased from 94 cents per share to 92 cents per share, reflecting a slight downward adjustment in expectations [3] Trading Strategies - The high implied volatility may present trading opportunities, as options traders often seek to sell premium on options with elevated implied volatility, aiming to benefit from the decay of option value [4]

Core Insights - TimesSquare Capital Management's "U.S. Focus Growth Strategy" reported a gross return of 4.00% and a net return of 3.78% for Q3 2025, outperforming the Russell Midcap Growth Index's return of 2.78% [1] Company Overview - BJ's Wholesale Club Holdings, Inc. operates warehouse clubs offering groceries, general merchandise, gasoline, and ancillary services, with a market capitalization of $12.17 billion as of December 11, 2025 [2] - The stock price of BJ's Wholesale Club Holdings, Inc. closed at $92.37 per share, reflecting a one-month return of -2.13% and a 52-week loss of 5.30% [2] Performance Analysis - BJ's Wholesale Club Holdings, Inc. experienced a 14% drop in stock value, despite second-quarter profits and earnings exceeding consensus expectations; however, revenues and same-store sales fell short [3] - The company's Northeast and Mid-Atlantic stores were adversely affected by unseasonable weather, impacting general merchandise sales, although groceries and sundries performed well [3] - Membership rolls for BJ's Wholesale Club continue to grow, indicating potential for future revenue [3] Market Position - BJ's Wholesale Club Holdings, Inc. was held by 37 hedge fund portfolios at the end of Q3 2025, a decrease from 44 in the previous quarter, suggesting a decline in popularity among hedge funds [4] - While the company shows investment potential, certain AI stocks are perceived to offer greater upside potential with less downside risk [4]

Core Insights - The BBH Select Series - Mid Cap Fund experienced a total return decrease of -0.9% in Q3 2025, underperforming the Russell Midcap Index, which returned 5.3% [1] - Year-to-date, the fund's total return is -1.8%, compared to the Index's 10.4% [1] - The third quarter saw a continuation of the low-quality rally that began late last year, gaining momentum throughout 2025 [1] Company Highlights - BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) was highlighted as a key stock in the fund's Q3 2025 investor letter [2] - BJ's Wholesale Club's one-month return was -4.66%, and its shares declined by 9.05% over the past 52 weeks [2] - As of December 10, 2025, BJ's stock closed at $89.61 per share, with a market capitalization of $11.806 billion [2] Investment Actions - The fund initiated new positions in ITT Inc. and BJ's Wholesale Club Holdings, Inc. during Q3 2025 [3] - The fund exited positions in Globant, Bruker, and Bright Horizons Family Solutions Inc. [3]

Core Insights - BJ's Wholesale Club will open three new locations in December, specifically in Springfield, Massachusetts, and Sumter, South Carolina on December 12, and in Casselberry, Florida on December 17 [1] Company Expansion - The new clubs will include on-site BJ's Gas stations, which will offer everyday low fuel prices and potential additional savings through the BJ's Fuel Savers Program [1] - The gas stations in Springfield and Sumter have already opened in November, indicating a phased approach to the expansion [1]

分组1: Retailer Performance - Costco is perceived positively by consumers, often described as a "themed park for adults," indicating strong brand loyalty and customer satisfaction [2][3] - BJ's faces operational challenges, particularly with technology and delivery services, but remains popular for its discounts and coupon offerings [3][4] 分组2: Consumer Trends - Initial reports from Black Friday indicate strong consumer spending, with high interest in high-value items such as gold, diamonds, and refrigerators [5][6][8] - The Kirkland brand is viewed as a trusted choice among Costco shoppers, contributing to consumer enthusiasm during sales events [7][8] 分组3: Gen Z Shopping Behavior - Gen Z shoppers differ significantly from traditional consumers, primarily engaging with brands through social media platforms like TikTok rather than traditional advertising methods [10][11] - Retailers need to adapt their marketing strategies to effectively reach Gen Z, who are less responsive to conventional advertising [11][12] 分组4: Costco Financials - Costco's October sales increased by 6.6%, with expectations for November sales to provide further insights into performance [13] - The stock has seen a decline of approximately 15% from its all-time highs in February, despite steady growth in sales and a recent increase in membership fees [13][14] 分组5: Investment Strategy - A conservative investment strategy is being considered for Costco, utilizing a neutral to bullish short put vertical option to capitalize on the upcoming earnings report [15][16] - The strategy involves selling a put option at the $880 strike price, with a probability of success exceeding 65% based on historical support levels [17][18]

Core Insights - Costco Wholesale Corporation and BJ's Wholesale Club operate in the warehouse retail space, with Costco having a market capitalization of approximately $396.6 billion and BJ's at roughly $11.8 billion [1][2] - Both companies are navigating a challenging consumer environment characterized by tighter budgets, with Costco leveraging its global scale and BJ's focusing on operational efficiency and market-specific execution [3] Costco's Strengths - Costco's membership-based business model provides a steady revenue stream, with membership renewal rates of 92.3% in the U.S. and Canada and 89.8% worldwide in Q4 of fiscal 2025 [3][4] - The company reported a 14% increase in membership fee income to $1,724 million in the quarter [3] - Costco's net sales for October increased by 8.6% year-over-year to $21.75 billion, demonstrating its ability to adapt to changing consumer preferences [5] - Digitally-enabled comparable sales surged by 16.6% in October, reflecting the effectiveness of Costco's digital initiatives [6] BJ's Wholesale Strengths - BJ's Wholesale has a membership-driven model with a tenured renewal rate of 90% and a higher-tier penetration level of 41%, ending Q3 of fiscal 2025 with 8 million members [7] - The company reported a 30% increase in digitally enabled comparable sales, driven by its focus on convenience and digital engagement [9] - BJ's continues to invest in curated assortments and fresh offerings, enhancing its competitive position against national brands [10] Sales and Earnings Estimates - The Zacks Consensus Estimate for Costco's current fiscal-year sales and EPS indicates year-over-year growth of 7.7% and 11%, respectively [13] - For BJ's Wholesale, the current financial-year sales and EPS estimates imply year-over-year growth of 4.5% and 7.4%, respectively [15] Stock Performance and Valuation - Costco shares have decreased by 12.2% over the past six months, while BJ's Wholesale has seen a steeper decline of 22.3% [18] - Costco's forward P/E ratio is 43.85, below its one-year median of 50.09, while BJ's stands at 19.37, below its median of 23.60 [19] Investment Outlook - Both companies carry a Zacks Rank 3 (Hold), but Costco is viewed as the stronger investment option due to its broader scale, strong member loyalty, and consistent execution in challenging consumer conditions [21]

Core Viewpoint - BJ's Wholesale Club's stock is poised for a bullish market reversal, potentially reaching $120 or higher, indicating a 33% upside from late-November trading levels [2] Technical Analysis - The stock has experienced a pullback since early 2025 but remains supported by long-term exponential moving averages (EMAs) [3] - A Head & Shoulders pattern is forming, which is a technical indicator of a potential trend reversal, characterized by three peaks [3] - The Q3 earnings release triggered a strong pre-market rally, reinforcing support at critical levels and forming the second shoulder in the pattern [4] - The critical resistance level is near the neckline at $95, which is expected to be tested before the end of 2025 [4] Market Sentiment and Performance - BJ's Wholesale Club is set for a market reversal that could add 30% or more to its stock price over the next few quarters, supported by better-than-expected earnings results and guidance [5] - Analysts and institutions are accumulating the stock, providing a strong tailwind for future performance [5] - The weekly chart indicates a bullish outlook, with price action finding support at critical levels and setting up for a trend-following signal [6] Analyst Sentiment - The decline in BJ's stock price was influenced by cooling analyst sentiment in Q2 and Q3, leading to reduced price targets and pressure on the market [8]