Core Viewpoint - Philip Morris International Inc. is expected to show growth in both revenue and earnings for the first quarter of 2025, with revenue estimates around $9 billion, reflecting a 1.8% increase year-over-year [1]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for quarterly earnings is $1.61 per share, indicating a 7.3% increase from the previous year [2]. - The company has a trailing four-quarter earnings surprise average of 4% [2]. Smoke-Free Product Performance - Smoke-free products contributed 40% to the company's net revenues in Q4 2024, showcasing the success of its IQOS device and other innovations like IQOS ILUMA, ZYN nicotine pouches, and VEEV ONE e-vapor [3]. - The estimated revenue from smoke-free products for Q1 2025 is $3,576.89 million, up from $3,296 million in the same quarter last year [4]. Cost Management and Strategic Initiatives - Philip Morris has implemented cost-saving measures and strategic initiatives that have positively impacted its margins [4]. Currency Impact and Regulatory Challenges - The company anticipates a 4-cent unfavorable impact on adjusted EPS due to volatile currency movements [5]. - Strict government regulations, including mandatory precautionary labels and self-critical advertisements, are challenges that may affect cigarette consumption [5]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for Philip Morris, with a Zacks Rank of 3 and an Earnings ESP of -1.83% [6].

BJ's Wholesale Club (BJ) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual ...

Core Viewpoint - BJ's Wholesale Club has shown strong performance in 2025, with a stock increase of 34.3% year to date, significantly outperforming the industry and the S&P 500 [1][2]. Membership and Revenue Growth - The company has surpassed 7.5 million members, achieving a renewal rate of 90%, which has contributed to a 7.9% year-over-year increase in membership fee income in Q4 of fiscal 2024 [6][7]. - Membership fee income is expected to grow at approximately 10.2% for fiscal 2025 [7]. Digital and Operational Advancements - BJ's has enhanced its digital capabilities, offering services like same-day delivery and curbside pick-up, which have led to a 26% year-over-year growth in digitally enabled comparable sales in Q4 of fiscal 2024 [8][9]. - The company plans to open 25 to 30 new clubs over the next two fiscal years, targeting high-growth regions and underserved markets [3]. Financial Performance and Valuation - The Zacks Consensus Estimate for earnings per share has been revised upward, indicating expected growth rates of 4.4% for the current fiscal year and 10% for the next fiscal year [10]. - BJ's forward 12-month price-to-earnings ratio is 27.79, higher than the industry average of 20.78, reflecting investor confidence in the company's growth potential [11][12]. Long-term Financial Guidance - The company has guided for mid-single-digit percentage growth in total revenue and low-to-mid single-digit percentage increases in comparable club sales, excluding gasoline sales [13].

Company Overview - BJ's Wholesale Club Holdings, Inc. has become a preferred destination for shoppers seeking essentials and other items, focusing on simplifying assortments, expanding its own-brands portfolio, enhancing digital capabilities, and providing value to customers [12] - The company carries approximately 7,000 active stock keeping units and consistently offers 25% or more savings on a representative basket of manufacturer-branded groceries compared to traditional supermarket competitors [12] Investment Insights - BJ is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of B, indicating a solid position in the market [13] - The Momentum Style Score for BJ is B, with shares having increased by 7.6% over the past four weeks [13] - Six analysts have revised their earnings estimates upwards in the last 60 days for fiscal 2026, with the Zacks Consensus Estimate increasing by $0.04 to $4.23 per share [13] - BJ has an average earnings surprise of 12%, suggesting potential for positive performance [13] Conclusion - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, BJ's Wholesale Club should be considered for investors' short lists [14]

Core Insights - BJ's Wholesale Club Holdings, Inc. is experiencing strong performance driven by membership growth and digital innovations [1] - The company is focused on enhancing member loyalty, refining product assortments, improving digital capabilities, and expanding its club network [1] Membership Growth - In Q4 of fiscal 2024, BJ's reported a record membership exceeding 7.5 million, with a renewal rate of 90% [2] - Membership fee income increased by 7.9% year-over-year in the same quarter [2] - BJ's has implemented a multifaceted membership strategy, including enhancements to its credit card program and additional benefits for Club Plus members, resulting in nearly 40% penetration of higher-tier memberships [3] Value Proposition - BJ's offers pricing that is up to 25% better than grocery competitors, appealing to value-conscious consumers [4] - The company maintains a curated assortment of products across various categories, enhancing its value-driven model [4] Digital Transformation - Digitally enabled comparable sales grew by 26% year-over-year in Q4 of fiscal 2024, significantly contributing to overall sales growth [6] - The BJ's mobile app is utilized by 60% of members, featuring coupon clipping, store navigation, and Express Pay Checkout, which enhances the shopping experience [7] Expansion Strategy - BJ's opened seven new clubs and 12 gas stations in fiscal 2024, with plans to open 25 to 30 new clubs over the next two fiscal years [9] Financial Outlook - BJ's projects mid-single-digit percentage growth in total revenue and low-to-mid single-digit percentage increases in comparable club sales, excluding gasoline sales [10] - The company anticipates a high-single to low-double-digit percentage increase in earnings per share in the long run [10]

Core Viewpoint - The Nasdaq has experienced significant growth over the past two years, driven by optimism regarding lower interest rates benefiting high-growth companies, particularly in artificial intelligence and quantum computing [1] Group 1: Market Overview - Recently, the Nasdaq index has faced a correction, dropping more than 10% from its peak due to economic concerns, particularly related to tariffs imposed by President Trump on imports from China, Canada, and Mexico [2] - Although the Nasdaq has moved out of correction territory, many top stocks remain undervalued, presenting buying opportunities for investors [2] Group 2: Company Analysis - Intuitive Surgical - Intuitive Surgical is a leader in robotic surgery, with its da Vinci platform generating billions in annual revenue and maintaining a strong competitive advantage due to widespread surgeon training on the platform [4] - The company generates significant revenue not only from selling or leasing robotic platforms but also from recurring sales of disposable surgical instruments and accessories [5] - In the latest quarter, Intuitive Surgical reported double-digit increases in revenue, installed systems, and procedure volume, indicating strong growth [6] - Despite a recent drop of over 9% in share price, Intuitive Surgical's stock is trading at 64 times forward earnings estimates, down from over 75 earlier this year, reflecting its market dominance and competitive moat [7] Group 3: Company Analysis - Costco - Costco generates most of its profits from membership sales, which are high-margin and have renewal rates consistently above 90%, providing visibility on future earnings [8] - The company offers two membership tiers, with the higher-priced executive membership increasing by over 9% in the most recent quarter, now representing 47% of all memberships and over 70% of global sales [9] - Costco has demonstrated consistent earnings growth and improved return on invested capital, indicating effective investment decisions [10] - While tariffs may exert some pressure on Costco, the impact is expected to be limited, as only about one-third of its U.S. sales come from imports, with less than half from the affected countries [11] - Following an 8% loss last week, Costco's stock is trading at 53 times forward earnings estimates, down from nearly 60 times, making it a valuable long-term investment despite not being the cheapest option [12]

Core Viewpoint - Costco Wholesale Corp reported mixed fiscal second-quarter results, leading to a decline in shares despite strong sales growth and positive analyst outlooks [1][10]. Financial Performance - Total sales grew by 9.1% to $62.5 billion, while EBIT increased by 12.3% to $2.3 billion [9]. - Earnings per share were $4.03, missing the consensus estimate of $4.11 [2]. - Earnings grew approximately 3% year-on-year during the fiscal second quarter, with high-single-digit growth excluding a tax benefit from the previous year [4]. Analyst Ratings and Price Targets - Goldman Sachs maintained a Buy rating and raised the price target from $1,087 to $1,102 [2]. - JPMorgan reaffirmed an Overweight rating and increased the price target from $1,065 to $1,070 [4]. - BMO Capital Markets maintained an Outperform rating with a price target of $1,175 [6]. - Telsey Advisory Group reiterated an Outperform rating and set a price target of $1,100 [8]. Sales and Membership Insights - Same-store sales, excluding gas, grew by 9.1%, surpassing the consensus of 6.3% [2]. - E-commerce sales increased by 22%, marking the fifth consecutive quarter of high-teens percentage growth [6]. - Membership renewal rates reached record levels, with executive member sales penetration at 74% [6][7]. - The company has a large membership base of approximately 141 million members, contributing to its strong sales and high renewal rates [10]. Market Position and Growth Potential - Analysts noted that Costco's core margins contracted due to supply chain investments and changes in product mix [3][7]. - The company is expected to continue gaining market share due to its strong sales performance and disciplined approach to value and quality in retail [5][7].

Financial Data and Key Metrics Changes - Net sales for the fourth quarter reached $5.1 billion, an increase of 5.4% year over year on a comparable thirteen-week basis [6] - Merchandise comparable sales, excluding gas sales, increased by 4.6% year over year, driven by strong traffic [6] - Total comparable club sales for the fourth quarter, including gas sales, grew by 4% year over year [7] Business Line Data and Key Metrics Changes - The company reported robust traffic and market share gains across its clubs and gas stations, indicating strong performance in both areas [4] - General merchandise continues to show progress, with ongoing efforts to differentiate and grow this segment [5] Market Data and Key Metrics Changes - The company is experiencing strong traffic trends, with expectations that the first half of the fiscal year will be stronger than the second half [11] - The club industry as a whole is gaining market share as consumers seek alternatives to high grocery store prices [30] Company Strategy and Development Direction - The company’s four strategic priorities include improving member loyalty, enhancing the shopping experience, delivering value conveniently, and expanding its footprint [5] - The digital business is significantly contributing to growth, with 90% of digital orders fulfilled through clubs, enhancing convenience for members [16] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance for the fourth quarter and highlighted the importance of member value and strategic execution [4] - There are ongoing initiatives to optimize new store openings and improve overall productivity, with a focus on driving clubs to their mature run rates as quickly as possible [35] Other Important Information - The company is cautious about capital allocation and aims to grow sustainably without overextending, despite a significant capital expenditure budget for the year [30] - Management acknowledged challenges related to merchandise margins due to rising commodity prices but remains optimistic about overall performance [46] Q&A Session Summary Question: Can you provide more color around the cadence of the comp throughout the fourth quarter? - Management noted that the comp cadence was strong throughout the quarter, with positive trends in traffic [10][11] Question: How do you manage tariff risks? - Management provided context on past tariff management and indicated that they are monitoring the situation closely [14] Question: What is driving the strength of the digital business? - The strength is attributed to expanded online offerings and increased app usage, with a focus on convenience for members [15][16] Question: Can you frame your exposure to China and Mexico? - Management addressed concerns regarding exposure to these markets, particularly in relation to the food business [20] Question: What are your expectations for merchandise margins this year? - Management indicated that while margins were slightly below expectations due to rising commodity costs, they had a good year overall [46] Question: What is the long-term outlook for new store openings? - Management discussed the potential for continued growth in both existing and new markets, emphasizing a measured approach to expansion [28][30] Question: How is the Fresh 2.0 initiative performing? - Management highlighted the success of the Fresh 2.0 initiative and its positive impact on basket size and customer engagement [40]

Financial Data and Key Metrics Changes - The company reported fourth quarter net sales of $5.1 billion, an increase of 5.4% year-over-year on a comparable 13-week basis [35] - Merchandise comparable sales, excluding gas sales, increased by 4.6% year-over-year, driven by strong traffic [35][36] - Adjusted earnings per share for the quarter was $0.93, reflecting strong membership and traffic, merchandising improvements, and digital conveniences [42][47] Business Line Data and Key Metrics Changes - The perishables, grocery, and sundries division delivered over 4% comparable growth in the fourth quarter, with perishables leading the way [8] - The general merchandise and services division saw comps grow by more than 5% in the fourth quarter, outpacing consumables for the first time since the pandemic [9] - Consumer electronics experienced high-single digit comps, driven by video games, tablets, and audio [10] Market Data and Key Metrics Changes - Comparable club sales for the fourth quarter, including gas sales, grew by 4% year-over-year, with comp gallons growing 3% year-over-year [36] - Digitally enabled comp sales grew by 26% year-over-year, contributing significantly to overall growth [37][24] Company Strategy and Development Direction - The company focuses on four strategic priorities: improving member loyalty, enhancing shopping experience, delivering value conveniently, and expanding footprint [12] - Membership fee income increased by 8.5%, with a renewal rate of 90%, indicating strong member engagement [13][14] - The company plans to open 25 to 30 new clubs over the next two fiscal years, with a robust pipeline of approved new clubs [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate economic and geopolitical uncertainties while focusing on long-term growth drivers [47][54] - The company expects fiscal 2025 comparable sales growth, excluding gas, to be between 2% to 3.5% [48] - Management noted that members remain value-conscious, which has led to increased spending across all income levels [32] Other Important Information - The company ended the fourth quarter with the lowest level of debt since its IPO and no near-term maturities [45] - Capital expenditures for fiscal 2024 were approximately $588 million, supporting the growing real estate pipeline [46] Q&A Session Summary Question: Can you provide more color around the cadence of the comp throughout the fourth quarter and outlook for 2025? - Management noted strong performance throughout November and December, with January being the strongest month, and traffic momentum continuing into Q1 [63][64] Question: Can you remind us how you managed tariff risks previously? - Management indicated that tariffs could raise prices and disrupt supply chains, but periods of rising prices often lead consumers to seek value, benefiting BJ's [74][75] Question: What is driving the strength of the digital business? - The digital growth is attributed to convenience features like BOPIC, curbside pickup, and same-day delivery, along with improvements in the app and website [78][82] Question: Can you share insights on new club performance and future growth? - Management expressed confidence in new club performance, with clubs opened since 2020 contributing significantly to comp sales [29][95] Question: What is the long-term potential for club openings? - Management sees opportunities for growth in various markets and plans to continue expanding at a measured pace [110][112]

Financial Data and Key Metrics Changes - The company reported fourth quarter net sales of $5.1 billion, an increase of 5.4% year over year on a comparable thirteen-week basis [27] - Merchandise comparable sales, excluding gas sales, increased by 4.6% year over year, driven by strong traffic [27] - Adjusted earnings per share for the quarter was $0.93, reflecting strong membership and traffic, merchandising improvements, and digital conveniences [31] Business Line Data and Key Metrics Changes - The perishables, grocery, and sundries division delivered over 4% comparable growth in the fourth quarter, with perishables leading the way [8] - General merchandise and services division comparable sales grew by more than 5% in the fourth quarter, with notable performance in consumer electronics and toys [10][11] - Digitally enabled comparable sales grew by 26% year over year, contributing significantly to overall growth [28] Market Data and Key Metrics Changes - Membership reached an all-time high of over 7.5 million members, with a renewal rate of 90% [7] - The company opened seven new clubs and 12 gas stations in fiscal 2024, marking entry into its 21st state [21] - The company expects to open 25 to 30 clubs across the next two fiscal years, indicating robust growth plans [21] Company Strategy and Development Direction - The company focuses on four strategic priorities: improving member loyalty, enhancing shopping experience, delivering value conveniently, and expanding footprint [12] - Investments in digital conveniences and merchandising strategies are aimed at driving member engagement and loyalty [19][20] - The company is committed to maintaining a strong pricing position, offering up to 25% better pricing than grocery competitors [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties and consumer behavior changes, emphasizing the importance of delivering value [24] - The company anticipates comp sales growth excluding gas of 2% to 3.5% for fiscal 2025, aligning with long-term growth expectations [36] - Management highlighted the importance of maintaining strong member engagement and loyalty as key drivers for future growth [19] Other Important Information - The company reported a year-over-year decrease in merchandise gross margins by approximately 10 basis points, attributed to rising costs in key products [30] - Capital expenditures for fiscal 2024 were approximately $588 million, supporting the growing real estate pipeline [33] - The company ended the fourth quarter with the lowest levels of debt since its IPO, indicating a strong balance sheet [33] Q&A Session Summary Question: Can you provide more color around the cadence of the comp throughout the fourth quarter and the outlook for 2025? - Management noted strong performance throughout the fourth quarter, with November and December being particularly good months, and January being the strongest [46] - Traffic momentum has continued into Q1, although there is increased sensitivity to discretionary purchasing due to economic uncertainty [47] Question: Can you remind us how you managed tariff risks in the past and your current thoughts on it? - Management acknowledged that tariffs could raise prices and disrupt supply chains but emphasized that periods of rising prices often benefit the company as consumers seek value [55] Question: What is driving the strength of the digital business? - The digital business is driven by convenience, with services like BOPIC, curbside pickup, and same-day delivery contributing to increased member spending [56] Question: Can you provide insights on the exposure to China and Mexico? - The company has limited exposure to China, with only a few percent of its business imported directly, while exposure to Canada and Mexico is greater but not negatively impactful [66] Question: How is the performance of new clubs and the confidence in accelerating growth? - Management expressed strong satisfaction with the performance of new clubs, which are exceeding plans on both top and bottom lines, and highlighted a robust pipeline for future openings [70]