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BJ's Wholesale Club Holdings Inc

BJ's Wholesale Club Holdings Inc

BJ
$93.40USD↑+0.35%+0.33 today

MARKET CAP

11.9B

P/E (TTM)

21.4x

FWD P/E

19.5x

DAY RANGE

$92 – $96

52W RANGE

$83
$111

AI Summary

Stalk
Buy NowHigh

BJ has transitioned into a Stage 2 advancing phase, with price reclaiming and holding above the 9, 20, and 50 EMAs on elevated volume. The active Lockout Rally reflects forced short covering and institutional demand, sustaining momentum despite overbought conditions. EMAs are aligned and acting as support, confirming continuation potential. In line with the Stable strategy’s emphasis on controlled engagement, immediate participation on continuation is warranted.

  • ↑Q1’26 revenue grew 10% YoY to $5.5B driven by increased traffic.
  • ↑Memberships rose 500K, taking total to 8M and boosting fee income 10% ($132M).
  • ↓Merchandise gross margin fell 10bps YoY, pressuring earnings.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

BJ's Wholesale Club Holdings, Inc. (NYSE: BJ) is a leading operator of membership-based wholesale clubs on the East Coast of the United States, providing an extensive selection of products including groceries, general merchandise, and fuel. The company focuses on delivering affordability and value to families, leveraging membership engagement and digital capabilities to enhance the shopping experience. BJ's is part of the broader trend towards value-oriented retailing amid economic challenges, facing strong competition from other wholesale giants like Costco and Sam's Club.

Bull says

  • ↑Q1’26 revenue grew 10% YoY to $5.5B driven by increased traffic.
  • ↑Memberships rose 500K, taking total to 8M and boosting fee income 10% ($132M).
  • ↑Digital sales jumped 28% YoY via curbside pickup and same-day delivery.
  • ↑Plans to open 25–30 new clubs in two years expand footprint.
  • ↑Inventory per club down 2%, aiding operational efficiency and cost control.
  • ↑Strong earnings revisions and profitability metrics support growth outlook.

Bear says

  • ↓Merchandise gross margin fell 10bps YoY, pressuring earnings.
  • ↓Inflation drives value-seeking behavior, potentially curbing spending.
  • ↓New market entries face stiff competition in Texas and beyond.
  • ↓Short interest elevated, signaling investor skepticism on growth execution.
  • ↓Earnings yield weak and momentum low, hinting at valuation risk.
  • ↓Cost inflation and tariff uncertainties may erode future margins.

Investment themes with BJ

Others↑ +0.32%

Miscellaneous or uncategorized companies

ATAI · SVIX · SVXY

Earnings Call · Q1 2025 · Mgmt. Guidance

Updated 07-18-2026neutral

Transcript signals

Bull points

  • Net sales in the first quarter were $5 billion, increasing 4.7% year over year. Merchandise comp sales, which exclude gas sales, increased by 3.9% year over year, led by traffic and units as our value prop continues to resonate with our members.
  • Digitally enabled comp sales in the quarter grew 35% year-over-year, contributing significantly to our overall sales growth.
  • Membership fee income, or MFI, grew 8.1% to approximately $120.4 million in the first quarter, led by strong membership acquisition and retention across the chain. MFI also benefited from a fee increase that went into effect on January 1st, 2025.

Bear points

  • SG&A expenses in the first quarter were approximately $760.9 million, resulting in approximately 10 basis points of year-over-year deleverage as a percentage of net sales. This was primarily driven by our continued investments to drive our strategic priorities, and more specifically, in outsized growth in depreciation as we accelerate new club openings.
  • the range of potential outcomes have become wider since we issued our annual guidance. We expect the current environment to increasingly influence costs and consumer spending patterns, which may ultimately impact our financial performance.
  • obviously we've seen some impact of costs within the construction portfolio.
Read full transcript analysis ›