Here's Why BJ's Wholesale Club (BJ) is a Strong Growth Stock

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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why This 1 Growth Stock Should Be On Your Watchlist

For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.

BJ's Wholesale Club (BJ)

BJ's Wholesale Club Holdings, Inc. has emerged as one of the preferred destinations for shoppers when it comes to essentials and other items. The company’s focus on simplifying assortments, expanding own-brands portfolio, enhancing digital capabilities and providing value to customers has contributed to growth in membership signups and renewals. The company carries approximately 7,000 active stock keeping units. Notably, the company consistently offers 25% or more savings on a representative basket of manufacturer-branded groceries compared to traditional supermarket competitors.

BJ boasts a Growth Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Its bottom-line is projected to rise 4.4% year-over-year for 2026, while Wall Street anticipates its top line to improve by 5.8%.

Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.04 to $4.23 per share. BJ also boasts an average earnings surprise of 12%.

On a historic basis, BJ's Wholesale Club has generated cash flow growth of 17.1%, and is expected to report cash flow expansion of 5.3% this year.

Investors should take the time to consider BJ for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.

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BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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