BJ's Wholesale Club: Back To Its Rightful Place Following The Recent Selloff

YR Research
4.21K Followers
(6min)

Summary

  • BJ's Wholesale Club had a decent Q2 but lagged behind Costco and Walmart.
  • Despite slight revenue growth, BJ's failed to gain market share, with comparable sales and membership revenues trailing competitors.
  • BJ's valuation remains unattractive, trading at a discount to peers but still above its 5-year average, with no major improvement drivers.
  • Given mediocre results, I maintain a 'Hold' rating, expecting market-average returns at best.
BJ"s membership club entrance in Cary, NC.

StevenStarr73

It's time for our quarterly check-up on BJ's Wholesale Club (NYSE:BJ).

After starting the year with industry-leading stock performance despite relatively weak results, BJ's shares are back to their rightful place.

Let's dig into the second-quarter numbers which drove the

This article was written by

4.21K Followers
I aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to big winners. This means that often I'll rate great companies at a 'Hold' because their growth opportunity is below my threshold, or their downside risk is too high.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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