Update shared on27 Aug 2025
Fair value Decreased 4.52%Analysts have modestly reduced their price target for BJ’s Wholesale Club Holdings to $115.63, primarily citing slower comparable store sales growth, macroeconomic uncertainty, and valuation concerns despite strong membership and digital trends.
Analyst Commentary
- Slower-than-expected comparable store sales growth of 2.3% lagging the broader grocery industry, leading to concerns over topline momentum and tougher second half comparables.
- Ongoing macroeconomic uncertainty and adverse weather impacting sales, with several analysts viewing consensus and internal guidance as too optimistic for upcoming fiscal years.
- Record high membership growth above 8 million, rising premium tier memberships, and notable engagement underpinning confidence in the company’s underlying business trajectory.
- Some bullish analysts see the recent stock selloff as overdone, noting better-than-expected Q2 earnings, strong digital and membership growth, and raised forward guidance.
- Several analysts cite valuation concerns and the stock’s significant outperformance year-to-date, prompting downgrades or cautious outlooks despite maintaining Buy or Outperform ratings.
What's in the News
- BJ's Wholesale Club is expanding with new openings in Warner Robins, Georgia, and Springfield, Massachusetts, offering member-focused perks, community partnerships, and enhanced shopping conveniences.
- The company expects comparable club sales growth, excluding gasoline, of 2.0% to 3.5% year-over-year for the fiscal year ending January 31, 2026.
- BJ's completed the repurchase of 430,000 shares for $47.5 million under its buyback program.
- The company was added to multiple Russell growth and midcap indices, signaling increased visibility among institutional investors.
- Shareholders approved an amendment to the company's certificate of incorporation, allowing exculpation of officers as permitted by Delaware law.
Valuation Changes
Summary of Valuation Changes for BJ's Wholesale Club Holdings
- The Consensus Analyst Price Target has fallen slightly from $121.11 to $115.63.
- The Future P/E for BJ's Wholesale Club Holdings has fallen from 29.12x to 26.80x.
- The Net Profit Margin for BJ's Wholesale Club Holdings remained effectively unchanged, moving only marginally from 2.65% to 2.71%.
Disclaimer
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