My previous investment thought on BJ’s Wholesale Club Holdings (NYSE: BJ ) (published on 23 rd August) was a hold rating, mainly because of the high relative valuation that BJ traded at. I reiterate my hold rating. I believe the near-termI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the med ...

Core Viewpoint - The members-only discount store concept has gained significant popularity, leading to strong growth and record profitability for Costco Wholesale and BJ's Wholesale Club, with both companies' shares reaching all-time highs in 2023 [1]. Group 1: BJ's Wholesale Club - BJ's Wholesale Club has 7.5 million paying members and 247 club stores, which are significantly smaller than Costco's 76 million members and 891 locations [3]. - BJ's focuses on a strong regional presence, particularly in the eastern U.S., offering a greater variety of grocery items in smaller packages, appealing to everyday shoppers [4]. - In Q3, BJ's comparable club sales increased by 3.8% year-over-year, with adjusted EPS up 18%, surpassing Wall Street estimates [5]. - The company has seen a robust increase in memberships and store traffic, with digitally enabled comparable sales up 30% this year, indicating successful e-commerce investments [6]. - BJ's shares are trading at a forward P/E ratio of 24, representing a significant discount compared to Costco's forward P/E of 54, making it an attractive investment option [7][8]. Group 2: Costco Wholesale - Costco's net comparable sales increased by 6.5% year-over-year, outperforming BJ's growth rate, highlighting its size advantage and exposure to high-growth international markets [9]. - Costco offers a larger selection of premium and big-ticket items, positioning it well to capture a rebound in discretionary spending as borrowing costs decrease [10]. - Costco's brand recognition and industry leadership justify its higher valuation, despite its stock being considered expensive [11]. Group 3: Investment Decision - While Costco has strong growth trends, its stock is viewed as too expensive for immediate investment, whereas BJ's Wholesale appears to offer more value and better potential for shareholder rewards into 2025 and beyond [12].

Core Insights - BJ's Wholesale Club Holdings, Inc. reported mixed third-quarter fiscal 2024 results, with revenues missing estimates but earnings exceeding expectations, both metrics showing year-over-year improvement supported by comparable club sales growth [1][4]. Financial Performance - Adjusted earnings per share were $1.18, surpassing the Zacks Consensus Estimate of 91 cents and increasing from $1.00 in the prior year [4]. - Total revenues reached $5,099.4 million, a 3.5% increase year-over-year, but fell short of the consensus estimate of $5,126 million. Net sales rose 3.4% to $4,984.4 million, while membership fee income increased by 8.4% to $115 million [5]. - Comparable club sales grew by 1.5% year-over-year, with a 3.8% increase when excluding gasoline sales, outperforming the estimate of a 2% increase. Digitally enabled comparable sales surged by 30% [6]. Membership and Shareholder Value - The company expanded its membership base to 7.5 million and announced its first membership fee increase in seven years, effective January 1, 2025, raising the annual fee by $5 to $60 and the Club+ membership by $10 to $120 [2][12]. - A new $1 billion share repurchase program was introduced, reflecting the company's commitment to enhancing shareholder value [2][11]. Operational Efficiency - Gross profit increased to $975.5 million from $902.5 million in the previous year, with the merchandise gross margin rate expanding by 20 basis points due to effective cost management [7]. - Operating income rose by 15.1% year-over-year to $229.4 million, and the operating margin improved by 50 basis points to 4.5%. Adjusted EBITDA increased by 13.5% to $308.3 million, with the adjusted EBITDA margin also expanding by 50 basis points to 6% [8]. Guidance and Future Outlook - The company raised its fiscal 2024 guidance, projecting fourth-quarter comparable club sales growth (excluding gasoline) between 2.5% and 3%, leading to full-year growth of 2.3% to 2.4% [13]. - Management expects fourth-quarter adjusted earnings per share to range between 78 cents and 88 cents, with full-year adjusted earnings projected between $3.90 and $4.00 per share, an upgrade from previous guidance [14].

DA Davidson analyst Michael Baker reiterated the Buy rating on BJ’s Wholesale Club Holdings, Inc. BJ, raising the price forecast to $110 from $95.Yesterday, the company reported third-quarter adjusted earnings per share of $1.18, beating the street view of 91 cents. Quarterly revenues of $5.10 billion were in line with the analyst consensus.BJ’s Wholesale Club expects fourth-quarter adjusted EPS to be between $0.78 and $0.88. For FY2024, adjusted EPS is forecasted at $3.90 – $4.00, up from previous guidance ...

BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) Q3 2024 Earnings Conference Call November 21, 2024 8:30 AM ET Company Participants Cathy Park - IR Bob Eddy - Chairman & CEO Laura Felice - CFO Bill Werner - EVP, Strategy & Development Conference Call Participants Peter Benedict - Baird Robby Ohmes - Bank of America Edward Kelly - Wells Fargo Kate McShane - Goldman Sachs Simeon Gutman - Morgan Stanley Chuck Grom - Gordon Haskett Operator Welcome all and thank you for joining us for the BJ's Wholesale Club Q3 202 ...

Back in August, we told you to let BJ's Wholesale Club Holdings, Inc. (NYSE: BJ ) take a breather. We called it “healthy consolidation,” with a “long-term story [that] remains intact.” In addition, we said that “if the price dips into the $70s, it isMissed those gains? Come get moreWin with our playbook to advance your savings and retirement timeline by embracing a blended trading and investing approach at our one-stop shop.We activated our BLACK FRIDAY deal ahead of other services, so you can lock in our b ...

The cost of a BJ’s Wholesale Club membership will get pricier in January. The company plans to raise its standard membership for its warehouse stores to $60 per year and its premium Club+ membership to $120 beginning Jan. 1, BJ’s Wholesale said Thursday.Those hikes – the first in seven years – represent increases of $5 and $10, respectively, from the memberships’ current prices.  BJ'S WHOLESALE TO OPEN MORE LOCATIONS "Since the last membership fee increase, the Company has transformed its business with a re ...

In the wake of another extraordinary earnings report by semiconductor innovator NVIDIA (NVDA) , pre-market futures are positive. In actuality, NVDA shares had faded on the print yesterday, even with incredible stats such as surpassing October ’23 quarter revenues with October ’24 quarter EARNINGS.This is also the biggest day of the trading week for economic data, with Weekly Jobless Claims and manufacturing numbers from the Philly Fed index. But this has been a rather dormant week for economic reports overa ...

Key TakeawaysBJ's Wholesale Club shares rose Thursday after its third-quarter earnings beat estimates.The warehouse retailer also announced its first membership fee increase in seven years, and a new stock buyback plan.The fee increase follows a similar move from warehouse retail rival Costco that took effect in September, also the first in seven years. BJ's Wholesale Club (BJ) shares rose Thursday morning after the warehouse retailer reported better third-quarter earnings than expected despite sales fallin ...

BJ's Wholesale Club (BJ) reported $5.1 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 5.8%. EPS of $1.18 for the same period compares to $0.98 a year ago.The reported revenue represents a surprise of -0.52% over the Zacks Consensus Estimate of $5.13 billion. With the consensus EPS estimate being $0.91, the EPS surprise was +29.67%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...