- BJ’s Wholesale Club (BJ) is outperforming its larger competitors with strong technical indicators and price momentum.
- The stock has a 100% technical “buy” signal and is trading above all daily moving averages.
- BJ’s has gained 6.77% since a Trend Seeker “buy” signal on March 6.
- Analysts are bullish with 12 “Strong Buy” and 9 “Hold” ratings.
Today’s Featured Stock:
Valued at $15.8 billion, BJ’s Wholesale Club is challenging competitors like Costco (COST) and the Sam’s Club division of Walmart (WMT).
What I’m Watching:
I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipchart feature to review the charts for consistent price appreciation. BJ checks those boxes. Since the Trend Seeker signaled a “buy” on March 6 , the stock has gained 6.77%.
On the chart, you can note that the stock is trading above all of its daily moving averages.
BJ Price vs. Daily Moving Averages:
Barchart Technical Indicators for BJ’s:
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
When a stock is trading above all of its daily moving averages and closed within less than 1% of its 52-week high, it won’t take much to hit another new high
- BJ’s has a 100% technical “buy” signal.
- The stock closed at $119.94 on April 14 within 0.57% of its 52-week high.
- BJ’s has a weighted alpha of +66.44
- The stock has gained 56.7% over the past year.
- Trend Seeker “buy” signal intact.
- BJ’s is trading above its 20-, 50- and 100-day moving averages.
- The stock has made 9 new highs and is up 9.4% in the last month.
- The 14-day Relative Strength Index is at 65.67%.
- The technical support level is at $117.98.
Follow the Fundamentals:
- Market capitalization of $15.8 billion.
- Trailing price-earnings ratio of 28.98x.
- Revenue is expected to grow 5.79% this year and another 6.87% next year.
- Earnings are estimated to increase 4.66% this year and an additional 10.28% next year.
Analyst and Investor Sentiment on BJ’s:
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.
It looks like not only Wall Street analysts, but also many of the popular investing advisory services, are bullish on this stock.
- Wall Street analysts issued 12 “Strong Buy” and 9 “Hold” opinions on the stock with a price target near $120.
- Value Line gives the stock its highest rating and comments: “Timely BJ’s shares offer modest potential for long-term returns. The company takes a disciplined approach to profit growth, as solid unit-level economics are met with relatively predictable geographic expansion.”
- CFRA’s MarketScope gives the stock a “Buy” rating and comments: “We like BJ’s unique go-to market strategy in this environment. BJ’s has a broader assortment compared to Costco and Sam’s Club, especially in grocery and consumables, but about 25% lower prices on average compared to conventional grocers.”
- MorningStar thinks the stock is 81% overvalued and comments: “Despite operating amid a fiercely competitive retail industry in which price competition is pertinent and customer switching costs are virtually nonexistent, BJ’s Wholesale has managed to protect its position as a regional retailer along the East Coast. BJ’s is one of the few major warehouse club chains in the US, a business model that is predicated on stringently managing costs and driving strong sales volume per store.”
- Motley Fool investors are bullish. Of the 30 investors following the stock on Motley Fool, all 30 investors think the stock will beat the market.
- 9,400 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”
The Bottom Line:
Currently BJ’s has market momentum but it will have a hard time taking market share from some much bigger rivals.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten had a position in: BJ . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
