BJ's Wholesale Club Holdings, Inc. (BJ) Hit a 52 Week High, Can the Run Continue?

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]