Group 1 - BJ's Wholesale Club is part of the Consumer Discretionary sector, which includes 265 individual stocks and holds a Zacks Sector Rank of 2 [2] - The Zacks Rank system highlights stocks with characteristics to outperform the market, and BJ's currently has a Zacks Rank of 2 (Buy) [3] - BJ's year-to-date return is 18.6%, outperforming the average return of 8.7% for Consumer Discretionary companies [4] Group 2 - BJ's Wholesale Club belongs to the Consumer Services - Miscellaneous industry, which has gained about 7.1% this year, indicating BJ's better performance within this group [6] - Peloton, another stock in the Consumer Discretionary sector, has a year-to-date return of 12.3% and also holds a Zacks Rank of 2 (Buy) [5] - The consensus EPS estimate for BJ's has remained unchanged over the past three months, suggesting stable analyst sentiment [4]

Core Insights - BJ's Wholesale Club Holdings, Inc. is positioned for growth through digital innovation and an expanding membership base, enhancing its competitive edge in the membership warehouse club industry [1] Digital Innovation - BJ's has invested significantly in its digital infrastructure to improve member connectivity and streamline shopping experiences, including same-day delivery, curbside pickup, and buy-online, pick-up-in-club services [2] - The company has developed a digital ecosystem with platforms like BJs.com, BerkleyJensen.com, WellsleyFarms.com, and a mobile app, allowing members to browse, purchase products, use digital coupons, and track savings [2] Delivery and Convenience - BJ's has partnered with DoorDash, Instacart, and Roadie for on-demand delivery services and introduced the Same-Day Select program, offering members flexible delivery options [3] - Digitally engaged members shop more frequently and have higher average purchase values, with digitally enabled comparable sales increasing by 30% in Q3 of fiscal 2024 [4] Membership Model - BJ's has refined its marketing and merchandising strategies, diversifying private-label offerings and expanding into high-demand product categories, leading to increased membership signups and renewals [5] - In Q3 of fiscal 2024, BJ's reported an 8.4% year-over-year increase in membership fee income, driven by strong renewal rates and successful acquisition efforts [6] Financial Outlook - BJ's anticipates continued growth in membership revenues as it opens new clubs, with the first membership fee increase in seven years effective January 1, 2025 [6] - The company projects mid-single-digit percentage growth in total revenue and low-to-mid single-digit percentage increases in comparable club sales, excluding gasoline sales [9]

Core Insights - BJ's Wholesale Club is expanding its distribution capabilities with a new 500,000-square-foot distribution center in Commercial Point, OH, set to open in early 2027, which will enhance its supply chain and support its growing network of clubs [1][7][9] - The company has opened over 30 new clubs in the last five years, with the upcoming launch of its 250th club in Louisville, KY, marking a significant milestone in its expansion strategy [2][4] - BJ's has seen an 8.4% year-over-year increase in membership fee income in Q3 of fiscal 2024, with total membership growing by 35% over the past five years, reaching 7.5 million members [4] Distribution Center and Supply Chain - The new distribution center will utilize advanced automation solutions from Swisslog, including automated pallet storage and mixed-case pallet building, aimed at improving logistical efficiency and inventory management [3][7] - The facility is located on a 125-acre site, allowing for future expansion, which will further enhance BJ's logistical capabilities and support its expanding network [8] Growth Strategy - BJ's Wholesale Club is focused on simplifying product assortments, enhancing marketing and merchandising, and expanding into high-demand categories to drive growth [4][9] - The company is building a strong own-brand portfolio and investing in omnichannel capabilities, which has led to increased membership signups and renewals [4][9] Stock Performance - Over the past three months, BJ's stock has gained 16.1%, outperforming the industry and the S&P 500, which grew by 3.8% and 4%, respectively [10]

Core Insights - BJ's Wholesale Club Holdings, Inc. is set to open its 250th club in Louisville, KY, on January 31, 2025, marking its first location in Kentucky and expanding its presence to the 21st state [1] - The company offers significant savings to members, with discounts of up to 25% off regular grocery prices and a risk-free shopping experience backed by a 100% money-back membership guarantee [2] - BJ's continues to enhance its omnichannel capabilities, resulting in an 8.4% year-over-year increase in membership fee income for Q3 of fiscal 2024, with total membership reaching 7.5 million, a 40% increase since 2018 [5] Membership and Sales Performance - BJ's comparable club sales (excluding gas) increased by 3.8% in the fiscal third quarter, driven by strong traffic, which contributed over 4 percentage points to this growth [6] - The company's digital transformation efforts have led to a 30% growth in digitally enabled comparable sales in the fiscal third quarter, supported by services like buy-online-pickup-in-club and curbside pickup [7] Stock Performance and Valuation - BJ's shares have gained 14% over the past three months, outperforming the industry and the S&P 500, which grew by 1% and 4.4%, respectively [8] - The stock is currently trading at a forward 12-month price-to-earnings ratio of 23.31, significantly above the industry average of 7.47, indicating a premium valuation [11]

Freshpet Inc (FRPT) - Manufactures, distributes, and markets natural fresh meals and treats for dogs and cats [3] - Currently carries a Zacks Rank 2 [3] - Trailing four-quarter earnings surprise of 144.5% on average [3] - Zacks Consensus Estimate for current financial-year sales and earnings implies growth of 27.2% and 228.6% respectively [18] BJ's Wholesale Club Holdings Inc (BJ) - Membership fee income increased by 8.4% year-over-year in Q3 fiscal 2024 [4] - Expects to operate more than 250 clubs by the end of fiscal 2024 [4] - Digitally enabled comparable sales rose 30% in Q3 fiscal 2024 [17] - Clubs fulfill more than 90% of digitally enabled sales [17] - Announced first membership fee increase in seven years, effective Jan 1, 2025 [12] - Annual Club membership fee to rise by $5 to $60, Club+ membership fee to increase by $10 to $120 [12] - Introduced new perk for Club+ members including two free same-day deliveries on eligible orders of $50 or more [12] - Shares advanced 13.3% against industry decline of 1.2% [13] - Guided total revenue growth of mid-single-digit percentage [16] - Projected low-to-mid single-digit percentage increase in comparable club sales excluding gasoline sales [16] - Expects high-single to low-double-digit percentage increase in earnings per share in the long run [16] Sprouts Farmers Market Inc (SFM) - Engaged in retailing of fresh, natural, and organic food products [8] - Currently sports a Zacks Rank 1 (Strong Buy) [8] - Trailing four-quarter earnings surprise of 15.3% on average [8] - Zacks Consensus Estimate for current financial-year sales and earnings implies growth of 12.2% and 29.6% respectively [19] Ingredion Incorporated (INGR) - Manufactures and sells sweeteners, starches, nutrition ingredients, and biomaterial solutions derived from wet milling and processing corn and other starch-based materials [15] - Currently carries a Zacks Rank 2 (Buy) [15] - Trailing four-quarter earnings surprise of 9.5% on average [15] - Zacks Consensus Estimate for current financial year's earnings indicates growth of 12.4% from the year-ago reported number [9]

Core Insights - BJ's Wholesale Club has opened its 40th club in Florida, featuring an on-site gas station and a Fuel Saver Program to provide low fuel prices [1] - The company is expanding its footprint, having opened three new clubs and four gas stations in Q3 of fiscal 2024, aiming to exceed its goal of 250 clubs by the fiscal year-end [2] Membership and Savings - BJ's members can maximize savings by combining BJ's coupons with manufacturers' coupons, and enjoy low fuel prices at its 182 gas locations through the Fuel Saver Program [3] - The company offers savings of up to 25% on grocery prices, with a 100% money-back membership guarantee [4] Growth Factors - BJ's growth is driven by simplifying product assortments, enhancing marketing, and expanding into high-demand categories, resulting in an 8.4% year-over-year increase in membership-fee income in Q3 of fiscal 2024 [5] - Membership reached 7.5 million, supported by strong renewal rates and effective member acquisition strategies [5] Operational Performance - The company reported a 3.8% growth in comparable club sales (excluding gas) in Q3, with traffic contributing over 4 percentage points to this increase [6] - Despite challenges like the East Coast port strike and hurricanes, BJ's exceeded expectations, demonstrating the resilience of its business model [6] Market Performance - BJ's shares have increased by 15.4% over the past three months, outperforming the industry's decline of 1.8% and the S&P 500's growth of 3.3% [14] - The stock is currently priced at a premium, with a forward price-to-earnings ratio of 22.59X compared to the industry's 7.33X, indicating that growth potential may already be reflected in the stock price [15]

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are unde ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________ _______________________________ Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, par value $0.01 BJ New York Stock Exchange FORM 10-Q _______________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 2, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF T ...

Core Viewpoint - BJ's Wholesale Club has experienced significant stock performance, with a 15.3% increase over the past month and a 47.6% rise since the beginning of the year, outperforming both the Zacks Consumer Discretionary sector and the Zacks Consumer Services - Miscellaneous industry [1] Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $1.18 against a consensus estimate of $0.91 in its last earnings report [2] - For the current fiscal year, BJ's is projected to achieve earnings of $3.94 per share on revenues of $20.79 billion, reflecting a -0.51% change in EPS and a 4.65% change in revenues [3] - The next fiscal year forecasts an EPS of $4.20 on revenues of $22 billion, indicating a year-over-year growth of 6.58% in EPS and 5.82% in revenues [3] Valuation Metrics - BJ's currently trades at 25X current fiscal year EPS estimates, which is above the peer industry average of 20.1X [7] - On a trailing cash flow basis, the stock trades at 17.2X compared to the peer group's average of 7.5X [7] - The stock has a PEG ratio of 4.64, suggesting it is not among the top value stocks [7] Zacks Rank and Style Scores - BJ's holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, aligning with investment recommendations for stocks with Zacks Rank of 1 or 2 and Style Scores of A or B [8] - The company has a Value Score of B, with Growth and Momentum Scores of C and D, respectively, resulting in a combined VGM Score of B [6]

Numerous stock buyback or repurchase authorization announcements were made throughout 2024. For the most part, they have become commonplace. A buyback authorization is not an obligation or requirement to buy back stock but more so permission to repurchase shares. The company has the option to buy stock whenever it chooses under the conditions of the buyback plan. This distinction is critical as investors tend to believe a stock repurchase authorization means the company is immediately and furiously buying i ...