Last Updated: 14 Sep 2024
Executive Summary
BJs Wholesale Club Holdings Inc. (BJ) is a leading warehouse club operator on the East Coast of the United States. With a market capitalization of $10.7 billion, BJ's has a strong financial position with an EBITDA of $1.04 billion and diluted EPS of $3.96. The company's recent quarterly earnings and revenue growth rates are positive, indicating a healthy business outlook.
Company Overview
BJ's operates a network of over 230 warehouse clubs in 16 states. The company offers a wide range of products, including groceries, household items, electronics, and apparel. BJ's also provides a variety of services, such as optical, pharmacy, and auto repair.
Fundamental Analysis
BJ's financial performance has been solid in recent years. The company's revenue has grown steadily, reaching $20.4 billion in the trailing twelve months. Gross profit margin has remained stable at around 17%. Net income has also increased, resulting in a diluted EPS of $3.96.
The company's balance sheet is strong, with total assets of $10.8 billion and total debt of $2.7 billion. BJ's has a current ratio of 1.2 and a debt-to-equity ratio of 0.6, indicating a low risk of financial distress.
Technical Analysis
The technical analysis of BJ's stock price shows a bullish trend. The stock has been trading above its 50-day and 200-day moving averages, indicating a positive momentum. The stock price is currently trading at $81.47, which is below its 52-week high of $92.37 but above its 52-week low of $63.08.
Short Term Outlook
In the short term, BJ's stock is expected to continue its upward trend. The company's strong financial performance and positive analyst recommendations suggest that the stock is undervalued. The stock price is likely to rise towards its analyst target price of $88.29.
Long Term Outlook
In the long term, BJ's is well-positioned for growth. The company's focus on providing value to its members and its expansion into new markets should drive continued revenue and earnings growth. The stock is expected to continue to outperform the broader market over the next several years.
Analyst Recommendations
Analysts are bullish on BJ's stock. Six analysts have a strong buy rating, five have a buy rating, and 11 have a hold rating. The average analyst target price is $88.29, which represents a potential upside of 8.3% from the current stock price.
