Here's Why BJ's Restaurants (BJRI) is a Strong Value Stock
BJ’sBJ’s(US:BJRI) ZACKS·2025-12-26 15:41

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score identifies attractive stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score leverages price trends and earnings estimate changes to identify favorable investment opportunities [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with the best value, growth potential, and momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.81%, significantly outperforming the S&P 500 [8] Stock Selection Strategy - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] - Stocks with a 3 (Hold) rank should also have A or B Scores to maximize upside potential [10] Earnings Estimate Revisions - The direction of earnings estimate revisions is crucial in stock selection, as stocks with lower ranks may still have high Style Scores but declining forecasts [11] Company Spotlight: BJ's Restaurants - BJ's Restaurants operates a chain of high-end casual dining establishments and currently holds a 3 (Hold) Zacks Rank with a VGM Score of A [12] - The company has a forward P/E ratio of 18.75, making it attractive to value investors [12] - Recent upward revisions in earnings estimates have increased the Zacks Consensus Estimate for fiscal 2025 to $2.19 per share, with an average earnings surprise of +155.6% [13]