The Bull Case For BJ’s Wholesale Club (BJ) Could Change Following Store Expansion and Earnings Update

• In November 2025, BJ's Wholesale Club Holdings announced the opening of new locations in Mesquite, Texas, and Foley, Alabama, in addition to the relocation of its Rotterdam, New York club, updated its earnings guidance, released third quarter financial results, and disclosed completion of a significant share buyback tranche.
• These actions highlight BJ's ongoing commitment to market expansion, operational performance, and active capital management amid changing retail conditions.
• We'll explore how the company's latest club openings and updated earnings outlook reshape its investment narrative for long-term growth.

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BJ's Wholesale Club Holdings Investment Narrative Recap

To be a shareholder in BJ's Wholesale Club Holdings, you would typically believe in the resilience of the warehouse club model, the importance of recurring membership revenue, and the company's ability to expand into new markets even during economic fluctuations. The recent news, featuring new club openings, updated earnings guidance, and completed share buybacks, does not materially shift the primary short-term catalyst of physical footprint expansion, nor does it significantly alter the key risk of margin pressures from rising costs or price competition.

Of the recent announcements, the company's plan to open 25-30 new clubs over the next two years stands out as the most relevant, since physical expansion is closely tied to top-line growth and scale-driven margin benefits. These moves are expected to support recurring revenues and could help offset the challenges posed by any pressure on discretionary spending among shoppers, underscoring why store growth remains closely watched by market participants as the most immediate performance driver.

However, investors will also want to weigh the risk that, despite club growth, underperformance in general merchandise and margin pressures from competition could still impact long-term returns if...

Read the full narrative on BJ's Wholesale Club Holdings (it's free!)

BJ's Wholesale Club Holdings' narrative projects $25.2 billion in revenue and $683.1 million in earnings by 2028. This requires 6.5% yearly revenue growth and a $104.2 million earnings increase from $578.9 million currently.

Uncover how BJ's Wholesale Club Holdings' forecasts yield a $109.16 fair value, a 23% upside to its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community estimated BJ's fair value across a wide band from US$45.36 to US$144.70 per share. While some forecast much lower or higher values, the main debate centers on whether BJ's ongoing new club expansion will lead to sustained revenue gains amid looming margin risks; you can review individual viewpoints to see how expectations vary.

Explore 7 other fair value estimates on BJ's Wholesale Club Holdings - why the stock might be worth as much as 63% more than the current price!

Build Your Own BJ's Wholesale Club Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your BJ's Wholesale Club Holdings research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free BJ's Wholesale Club Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate BJ's Wholesale Club Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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