BJ's Wholesale Club Holdings, Inc., together with its subsidiaries, operates warehouse clubs on the eastern half of the United States. It provides groceries, general merchandise, gasoline and other ancillary services, coupon books, and promotions. The company sells its products through the websites BJs.com, BerkleyJensen.com, and Wellsleyfarms.com, as well as the mobile app. The company was formerly known as Beacon Holding Inc. and changed its name to BJ's Wholesale Club Holdings, Inc. in February 2018. BJ's Wholesale Club Holdings, Inc. was founded in 1984 and is based in Marlborough, Massachusetts.

BJ's Wholesale Club Holdings, Inc.

Key Points
Costco’s membership fees essentially cover all operating expenses, giving it pricing power competitors can’t match.
Renewal rates above 90% underpinned by a loyalty flywheel that's next to impossible to replicate.
Even at a premium valuation, Costco’s steady double-digit growth and fortress-like business model justify the price.
Costco (NASDAQ: COST) isn't just a retailer -- it's a phenomenon. From $1.50 hot dogs to cavernous warehouses and famously cheap rotisserie chickens, Costco has built an almost cult-like following in North America.
The company's unique business model has allowed it to thrive in an industry known for razor-thin margins and price-sensitive shoppers.
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Membership first, margin later
Costco's real secret weapon isn't on the shelves. The firepower lies in its membership model.
Customers pay $65 annually for a basic membership or $130 for an executive membership , which comes with extra rewards. As of the last quarter, the company had more than 81 million paid memberships -- driving $5.3 billion of revenue in the fiscal year (ending on August 31, 2025).
Membership revenue isn't just a nice bonus. It covers about one-fifth of overhead expenses, allowing the company to sell products at lower gross margins on a unit-basis.
That's why shoppers can consistently find prices that competitors can't match, and why Costco doesn't rely on high markups to generate profits.
An irreplaceable loyalty engine
Memberships are not only plentiful and growing, but they are sticky too.
Costco's renewal rates are extraordinary. Around 90% of members renew every year globally , and the rate is even higher in the U.S. This creates a virtuous cycle:
Low prices bring in shoppers.
Shoppers are happy and renew their memberships.
Renewals give Costco scale.
Scale allows for even lower prices.
Rinse and repeat.
Once customers are in the Costco ecosystem, they tend to stay. It's difficult for competitors to replicate this flywheel because it's built on decades of trust, scale, and consistent execution, not flashy marketing.
A long runway for growth
Even though Costco already operates 890 warehouses worldwide, it's not slowing down. Management expects to increase that number to 914 by the end of fiscal 2025 and to 944 by fiscal 2026 (six percent growth).
This disciplined expansion strategy focuses on high-return locations rather than aggressive, margin-eroding growth.
Strong financial foundation
Costco's financial results reflect its steady, reliable model. Last year, the company generated $275 billion in revenue (+8% y/y) and $8.1 billion in net income (+10% y/y), while producing $7.8 billion in operating free cash flow . Return on invested capital is a robust +20%, and has been steadily increasing; showing that the company doesn't just grow--it grows efficiently.
Again, the $5.3 billion membership fees last year are almost pure profit and are what make Costco's thin-margin retail operations sustainable, turning what would be a low-margin store model into a cash machine.
Valuation reflects its quality
The stock trades at about 46× forward earnings , which is expensive compared to most retailers, like Walmart (NYSE: WMT) at 34x, BJ's Wholesale Club (NYSE: BJ) at 19x and Target (NYSE: TGT) at just 11x.
But Costco has earned that premium. Earnings have grown at an average of +10% for years , and the company's high renewal rates and expansion plans make that growth stronger more predictable than most in the sector. For example, Target has seen its revenues flat-line and earnings trend down in the last three years.
Over the past decade, Costco's stock has appreciated more than 500% , rewarding long-term investors handsomely.
If the company keeps executing, there's no issue with it continuing to grow earnings into its valuation. At a 10% earnings growth rate, the P/E goes from 46x to 29x within five years.
Risks and resilience
A pullback in consumer spending is always a risk in retail, but Costco tends to shine when times get tough. Shoppers often trade down to its bulk bargains, keeping sales steady even when others struggle.
That said, inflation and currency swings can pressure margins, especially if Costco holds prices low to protect its value reputation.
Costco's model is rooted in its consistency. Membership fees make up most of its profit, giving it a steady income stream that cushions against volatility. It's a simple formula -- low prices, loyal members, and reliable recurring revenue -- but it's proven to work in good times and bad.
However, in my mind the sharpest risk stems from the company's reliance on membership revenues. While renewal rates hover above 90%, a prolonged slowdown could deal a double whammy of less membership fee revenue and fewer physical sales.
This doesn't seem to be showing any sign of slowing anytime soon though.
The Foolish bottom line
Costco has built a retail fortress powered by membership loyalty and unmatched value. Its model flips the traditional retail profit equation: instead of squeezing margins on goods, it wins with recurring membership revenue.
For long-term investors, Costco offers a rare mix of growth, resilience, and customer devotion that few competitors can match.
In a world where most retailers fight for thin margins and fleeting traffic, Costco's unique and cult-like membership model, relentless focus on value and enormous scale have poured the foundation for a sustainable competitive advantage for years to come.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How a $5 Rotisserie Chicken and a $65 Membership Are Powering an Unstoppable Retail Juggernaut

Costco Wholesale Corporation’s COST core membership model faced a slight hiccup in the final quarter of fiscal 2025, with the worldwide renewal rate easing to 89.8% from 90.2% in the preceding quarter. U.S. and Canada membership renewal rate stood at 92.3%, down 40 basis points on a sequential basis. This figure is a marginal step down from previous high-water marks and raises the question of whether this is a temporary blip or a signal of market saturation.
The decline, attributed to a rising share of online sign-ups, follows a surge in digital membership growth, including a large Groupon campaign in December 2023 that introduced younger members to the brand. While management emphasized that online members renew at slightly lower rates, it also views this trend as a positive evolution that expands Costco’s reach to a new demographic.
Nearly half of new members are now under 40, signaling an important generational turnover within the company’s member base. Costco’s challenge will be to engage these digital-first shoppers effectively through auto-renewal programs and targeted communication that deepens brand loyalty beyond initial discounts.
The renewal rate remains historically strong but could see minor pressure as the new mix of online members continues to flow through the system. Management expects this dynamic to persist for a few quarters before stabilizing. For a company known for decades of consistency in membership metrics, the shift underscores a new balancing act between digital expansion and retention discipline.
The question now is whether Costco’s push into online acquisition marks a temporary dip in loyalty or the beginning of a redefined membership model in the digital era. Costco reported a 14% year-over-year increase in membership fee income during the fourth quarter of fiscal 2025, reaching $1,724 million.
Walmart & BJ’s Wholesale Snapshot on Membership Income
Walmart Inc. WMT is leaning heavily into membership economics as Walmart+ and Sam’s Club continue to deliver outsized growth. In the second quarter of fiscal 2026, Walmart reported a 15.3% surge in global membership fee income, outpacing overall sales growth. Walmart+ delivered double-digit growth in fee income, while Sam’s Club posted a 7.6% rise fueled by higher Plus member penetration. Management emphasized that Walmart’s membership strength is now a critical profit lever alongside advertising and e-commerce, giving Walmart the flexibility to offset rising costs and reinforce its price leadership.
BJ's Wholesale Club Holdings, Inc. BJ is also showing notable traction in membership fees, supported by its digital ecosystem. BJ’s Wholesale posted record membership income of $123.3 million in the second quarter of fiscal 2025, up 9% from last year, with total membership reaching 8 million. BJ’s Wholesale noted that digitally engaged members are twice as valuable as in-club-only shoppers, underscoring how technology integration and higher-tier penetration, now at 41%, are fueling loyalty and retention.
What the Latest Metrics Say About Costco
Costco stock has risen 4.7% over the past year, underperforming the industry’s growth of 6.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 46.02, higher than the industry’s ratio of 29.94. COST carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 7.7% and 11%, respectively.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Costco's Renewal Rate Slips to 89.8%: Temporary Dip or New Normal?

Costco Wholesale Corporation COST reported a 14% year-over-year increase in membership fee income during the fourth quarter of fiscal 2025, reaching $1,724 million. Adjusted for currency, the growth was 13.6%. The September 2024 membership fee increase in the United States and Canada contributed to less than half of the quarterly growth, highlighting that most of the rise came from new sign-ups and member upgrades. Excluding the membership fee increase and foreign exchange effects, membership income grew 7% from the same period last year.
Paid memberships ended the fiscal year at 81 million, up 6.3%, with executive memberships climbing 9.3% to 38.7 million. Executive memberships now account for 47.7% of paid members and 74.2% of worldwide sales.
Renewal rates remain high at 92.3% in the United States and Canada and 89.8% globally, but both figures slipped modestly. Management attributed the decline to a greater share of digital sign-ups, including promotional campaigns such as the large Groupon initiative. Younger and digitally acquired members renew at slightly lower rates, creating some pressure on the metrics even as overall membership revenue expands. Younger members now account for nearly half of new sign-ups.
The company is countering this challenge through auto-renewal features, more targeted digital communication, and new perks such as extended warehouse hours and a $10 monthly credit on Instacart purchases for executive members. These benefits have already fueled stronger upgrade activity. The fee increase, coupled with broadening membership appeal, signals ongoing strength. However, the sustainability of double-digit fee growth hinges on balancing new member acquisition with retention stability.
Walmart & BJ’s Wholesale Snapshot on Membership Income
Walmart Inc. WMT is leaning heavily into membership economics as Walmart+ and Sam’s Club continue to deliver outsized growth. In the second quarter of fiscal 2026, Walmart reported a 15.3% surge in global membership fee income, outpacing overall sales growth. Walmart+ delivered double-digit growth in fee income, while Sam’s Club posted a 7.6% rise fueled by higher Plus member penetration. Management emphasized that Walmart’s membership strength is now a critical profit lever alongside advertising and e-commerce, giving Walmart the flexibility to offset rising costs and reinforce its price leadership.
BJ's Wholesale Club Holdings, Inc. BJ is also showing notable traction in membership fees, supported by its digital ecosystem. BJ’s Wholesale posted record membership income of $123.3 million in the second quarter of fiscal 2025, up 9% from last year, with total membership reaching 8 million. BJ’s Wholesale noted that digitally engaged members are twice as valuable as in-club-only shoppers, underscoring how technology integration and higher-tier penetration, now at 41%, are fueling loyalty and retention.
What the Latest Metrics Say About Costco
Costco stock has risen 4.8% over the past year, underperforming the industry’s growth of 6.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 45.34, higher than the industry’s ratio of 29.49. COST carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 7.8% and 11.2%, respectively.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Costco's Membership Fees Rise 14%: Sustainable Growth or Peak?

The S&P 500 Index ($SPX) (SPY) on Wednesday closed up +0.34%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.09%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.49%. December E-mini S&P futures (ESZ25) rose +0.30%, and December E-mini Nasdaq futures (NQZ25) rose +0.42%.
Stock indexes recovered from early losses on Wednesday and rallied, with the S&P 500 and Nasdaq 100 posting new all-time highs, and the Dow Jones Industrial Average reaching a one-week high. Stock indexes rallied on Wednesday after the September ADP employment change report unexpectedly contracted for a second consecutive month, which knocked the 10-year T-note yield -5 bp to a 1.5-week low. Signs of a weaker labor market also boosted the chances of a Fed rate cut at the October 28-29 FOMC meeting to 100%, according to swaps markets.
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Stocks also found support on Wednesday after the Sep ISM manufacturing index rose more than expected to a 7-month high. In addition, strength in chipmakers supported gains in the broader market, and pharmaceutical stocks rose for a second day on hopes that Pfizer's deal with the US government, which gives it a three-year reprieve from pharmaceutical tariffs, will set a path for other pharmaceutical makers to follow.
Stocks initially moved lower on Wednesday due to the US government shutdown, following lawmakers' failure to pass a continuing resolution to fund the government. The dollar index fell to a one-week low on Wednesday, and gold prices climbed to a record high as the government shutdown sparked a risk-off sentiment in asset markets. The shutdown also means a delay in government reports, including Thursday's weekly jobless claims report and Friday's monthly payroll report. A prolonged shutdown could also delay the government's inflation data, scheduled for release on October 15.
US MBA mortgage applications fell -12.7% in the week ended September 26, with the purchase mortgage sub-index down -1.0% and the refinancing sub-index down -20.6%. The average 30-year fixed rate mortgage rose +12 bp to 6.46% from 6.34% in the prior week.
The US Sep ADP employment change unexpectedly fell -32,000, weaker than expectations of a +51,000 increase and the largest decline in 2.5 years. Also, Aug was revised lower to -3,000 from the previously reported +54,000.
The US Sep ISM manufacturing index rose +0.4 to a 7-month high of 49.1, stronger than expectations of 49.0. The Sep ISM prices paid sub-index fell -1.8 to an 8-month low of 61.9, weaker than expectations of 62.7.
The White House warned last Wednesday that a government shutdown would trigger widespread dismissals of employees in government programs that don't align with President Trump's priorities. Bloomberg Economics estimates that 640,000 federal workers will be furloughed during a shutdown, which would expand jobless claims and push the unemployment rate up to 4.7%.
Rising corporate earnings expectations are a bullish backdrop for stocks. According to Bloomberg Intelligence, more than 22% of companies in the S&P 500 provided guidance for their Q3 earnings results that are expected to beat analysts' expectations, the highest in a year. Also, S&P companies are expected to post +6.9% earnings growth in Q3, up from +6.7% as of the end of May.
The markets are pricing in a 100% chance of a -25 bp rate cut at the next FOMC meeting on Oct 28-29.
Market focus this week will be on any new trade or tariff news. On Thursday, if the US government reopens, weekly initial unemployment claims are expected to increase by +7,000 to 225,000. Also, Aug factory orders are expected to increase by +1.4% m/m. On Friday, if the US government reopens, Sep nonfarm payrolls are expected to increase by +51,000, and the Sep unemployment rate is expected to remain unchanged at 4.3%. Also, Sep average hourly earnings are expected to increase by +0.3% m/m and +3.7% y/y. Finally, the Sep ISM services index is expected to slip -0.2 to 51.8.
Overseas stock markets on Wednesday settled mixed. The Euro Stoxx 50 climbed to a new record high and closed up +0.94%. China's Shanghai Composite did not trade and is closed for the week-long Lunar New Year holiday. Japan's Nikkei Stock 225 fell to a 2.5-week low and closed down -0.85%.
Interest Rates
December 10-year T-notes (ZNZ5) on Wednesday closed up +11 ticks. The 10-year T-note yield fell -4.6 bp to 4.104%. Dec T-notes climbed to a 1-week high on Wednesday, and the 10-year T-note yield fell to a 1.5-week low of 4.085%. T-notes rallied on Wednesday on signs of weakness in the US labor market after the Sep ADP employment change unexpectedly declined for a second month. The shutdown of the US government also boosted safe-haven demand for T-notes. An easing of price pressures also supported T-notes after the Sep ISM prices paid sub-index fell more than expected to an 8-month low.
European government bond yields on Wednesday were mixed. The 10-year German bund yield rose +0.2 bp at 2.713%. The 10-year UK gilt yield fell -0.3 bp to 4.696%.
The Eurozone Sep S&P manufacturing PMI was revised upward by +0.3 to 49.8 from the previously reported 49.5.
Eurozone Sep CPI rose +2.2% y/y from +2.0% y/y in Aug, right on expectations. Sep core CPI was unchanged from Aug at +2.3% y/y, right on expectations.
Swaps are discounting a 1% chance for a -25 bp rate cut by the ECB at its next policy meeting on October 30.
US Stock Movers
Pharmaceutical stocks rallied for a second consecutive day on Wednesday, in hopes that Pfizer's deal with the US government, which grants it a three-year reprieve from pharmaceutical tariffs, will set a path for other pharmaceutical makers to follow. As a result, AstraZeneca Plc (AZN) closed up more than +9% to lead gainers in the Nasdaq 100, and Eli Lilly (LLY) closed up more than +8%. Also, Merck & Co. (MRK) closed up more than +7% to lead gainers in the Dow Jones Industrials. In addition, Regeneron Pharmaceuticals (REGN), Pfizer (PFE), and Moderna (MRNA) closed up more than +6%, and Biogen (BIIB), Amgen (AMGN), and Bristol-Myers Squibb (BMY) closed up more than +5%.
Chip makers and AI-infrastructure stocks moved higher on Wednesday, a supportive factor for the broader market. Super Micro Computer (SMCI) closed up more than +9%, and Micron Technology (MU) closed up more than +8%. Also, Intel (INTC) closed up more than +7%, and Applied Materials (AMAT), Lam Research (LRCX), and ARM Holdings Plc (ARM) closed up more than +6%. In addition, KLA Corp (KLAC) closed up more than +4%, and ASML Holding NV (ASML) closed up more than +3%.
Cryptocurrency-exposed stocks are climbing today, with the price of Bitcoin up more than +2% at a 1.5-week high. As a result, Coinbase Global (COIN), Galaxy Digital (GLXY), MARA Holdings (MARA), and Strategy (MSTR) closed up more than +2%.
Lithium Americas (LAC) closed up more than +23% after Secretary of Energy Wright told Bloomberg TV that the US government agreed to acquire a stake in the company.
AES Corp (AES) closed up more than +16% to lead gainers in the S&P 500 on news that BlackRock's Global Infrastructure Partners LP is in advanced talks to acquire the company.
Nike (NKE) closed up more than +6% after reporting Q1 revenue of $11.72 billion, stronger than the consensus of $11.02 billion.
Carvana (CVNA) closed up more than +5% after Jeffries upgraded the stock to buy from hold with a price target of $475.
Samsara Inc (IOT) closed up more than +2% after Evercore ISI upgraded the stock to outperform from in line with a price target of $50.
Corteva (CTVA) closed down more than -9% to lead losers in the S&P 500 after saying it plans to split its seed and pesticide businesses into separate companies.
MercadoLibre (MELI) closed down more than 8% to lead losers in the Nasdaq 100 on concerns over future sales after rival Amazon Brazil said it will waive all logistics fees, including inbound, storage, and last-mile fees for retail sellers, effectively making its marketplace free through the peak holiday season.
Doximity (DOCS) closed down more than -3% after Goldman Sachs downgraded the stock to sell from neutral with a price target of $64.
Grocery retailers declined on Wednesday after Amazon.com announced the launch of a new private-label food brand, featuring more than 1,000 items. As a result, Dollar Tree (DLTR) closed down more than -4% and Dollar General (DG) closed down more than -3%. Also, BJ's Wholesale Club Holdings (BJ) closed down more than -2%, and Kroger (KR) and Walmart (WMT) closed down more than -1%.
GE Vernova (GEV) closed down more than -1% after RBC Capital Markets downgraded the stock to sector perform from outperform.
Earnings Reports(10/2/2025)
AngioDynamics Inc (ANGO) and Golden Matrix Group Inc (GMGI).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Rally as Weak US Jobs News Reinforces Fed Rate Cut Hopes

Wednesday, October 1, 2025
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including International Business Machines Corp. (IBM), The Williams Companies, Inc. (WMB) and Hilton Worldwide Holdings Inc. (HLT), as well as a micro-cap stock The Eastern Company (EML). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> ADP Sees Negative -32K Jobs in September
Today's Featured Research Reports
IBM’s shares have outperformed the Zacks Computer - Integrated Systems industry over the past year (+32.1% vs. +29.1%). The company is benefiting from a surge in demand for heterogeneous, dynamic and complex infrastructure strategies, which have led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management.
The integration of HashiCorp’s cloud software capabilities has further bolstered IBM’s hybrid multi-cloud approach. The company is betting big on the Watsonx platform, which is likely to be its core technology platform for AI capabilities. In addition, IBM continues to push the boundaries of quantum technology to explore solutions to complex problems beyond the reach of classical computing.
However, declining net sales in the Consulting segment, owing to soft demand in some end markets, are straining margins. Macroeconomic headwinds are worrisome. IBM’s acquisition spree has also escalated integration risks.
(You can read the full research report on IBM here >>>)
Shares of Williams Cos have outperformed the Zacks Oil and Gas - Production and Pipelines industry over the past year (+37.6% vs. +25.6%). The company reported consistent earnings growth, with second quarter 2025 adjusted EBITDA of $1.8 billion and major Transco expansions driving long-term contracted revenues.
Strategic acquisitions like Saber Midstream and ventures into power innovation projects broaden its footprint and diversify growth. Its fee-based model, with 90% of EBITDA insulated from commodity swings, underpins stable cash flows. However, risks persist: a high 63.4% debt-to-capitalization pressures the balance sheet, while elevated valuation multiples limit upside.
Heavy reliance on regulatory approvals for large-scale projects adds uncertainty, and rising operating and capex requirements could erode margins and constrain free cash flow in weaker cycles. Consequently, the energy infrastructure provider warrants a cautious stance from investors.
(You can read the full research report on Williams here >>>)
Hilton Worldwide’s shares have outperformed the Zacks Hotels and Motels industry over the year-to-date period (+5.1% vs. -14%). The company is benefiting from strong net unit growth, hotel conversions, and recovery across international markets. Hilton Worldwide’s focus on expanding its luxury portfolio, along with growth in Hilton Honors membership, remains a key positive.
Also, its focus on a capital-light model and disciplined capital return strategy bodes well. Management highlighted growing momentum in corporate group bookings, with forward-looking group position for 2026 and 2027 up in the high single digits.
However, its dismal China performance and broader economic uncertainty remain a concern. Earnings estimates for 2025 have remained unchanged in the past 30 days, limiting the upside potential of the stock.
(You can read the full research report on Hilton Worldwide here >>>)
Shares of Eastern Co. have underperformed the Zacks Security and Safety Services industry over the past year (-26.4% vs. +29.6%). This microcap company with a market capitalization of $143.06 million has top-line pressures from backlog contraction, margin erosion due to rising input costs and weak cash flows. Elevated customer concentration adds risk. Shares are undervalued at 0.64x EV/sales and 7.34x EV/EBITDA vs. industry averages.
Nevertheless, Eastern Co. is undergoing a strategic transformation aimed at operational efficiency and financial discipline. The closure of its Dearborn facility and shift to a leaner site, along with a 60-person headcount reduction, is set to yield $4 million in annualized savings.
A disciplined capital allocation approach — marked by $2.1 million in share buybacks, $4 million net debt reduction, and a 1.23x senior leverage ratio — underscores its balance sheet strength. The divestiture of low-margin ISBM assets has sharpened focus on high-margin growth areas. A 340-quarter dividend streak reinforces income appeal.
(You can read the full research report on Eastern Company here >>>)
Other noteworthy reports we are featuring today include Entergy Corp. (ETR), GE HealthCare Technologies Inc. (GEHC) and BJ's Wholesale Club Holdings, Inc. (BJ).
Mark Vickery
Senior Editor
Note: Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Investments Aid Entergy Corporation (ETR) Amid Poor Solvency
Per the Zacks analyst, ETR Corp. makes disciplined investment to maintain and upgrade the reliability of its electric utility systems. Yet its poor financial ratios indicate weak solvency position.
Digitization Holds Key to BJ's Wholesale (BJ) Sales Growth
Per the Zacks analyst, BJ's Wholesale Club has been investing in enhancing digital capabilities to better engage with members. Digitally-enabled sales rose 34% in the second quarter of fiscal 2025.
HealthEquity (HQY) Gains on HSA Strength but Faces Data Security Risks
Per the Zacks Analyst, HealthEquity benefits from strong HSA growth and a promising B2B2C model, though data security issues and intense competition remain key risks.
Emphasis on Toy Business Aids Mattel (MAT), Macro Woes Ail
Per the Zacks analyst, Mattel benefits from the toy segment's growth, driven by new product innovations and Licensing Partnership. However, uncertain macro environment is a concern.
Nektar (NKTR) Banks on Lead Pipeline Candidate Rezpeg Amid Rivalry
Per the Zacks analyst, Nektar is making progress with rezpeg, which is being developed for autoimmune diseases and offers significant opportunity. Stiff competition in the target market is a concern.
New Upgrades
GE HealthCare (GEHC) To Gain from Rising Product Demand
Per the Zacks analyst, GE HealthCare's topline is likely to driven by rising demand for its products as it cater to growing markets. However, choppy macro environment to weigh on the stock.
Expansion & Capital Strength Aid Texas Capital (TCBI)
Per the Zacks analyst, Texas Capital's 2021 strategic plan, expansion into new verticals, and technology investments drive growth. Strong capital and liquidity support sustainable shareholder returns.
New Downgrades
Rising Expenses & Slow Enrollment Drag Centene (CNC) Down
Per the Zacks analyst, Medicaid redeterminations and rising care costs weigh on Centene's performance.
Weak Housing Market Ail Builders FirstSource's (BLDR) Performance
Per the Zacks analyst, Builders FirstSource business is being hurt by the ongoing softness in the housing market. Also, declining trends in single-family and multi-family is further pressuring growth.
Beyond Nvidia: AI's Second Wave Is Here
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BJ’s Wholesale Club Holdings, Inc. BJ is making significant strides in its digital transformation, with the latest quarter underscoring how technology is reshaping member engagement. In the second quarter of fiscal 2025, digitally enabled comparable sales advanced 34% from a year ago, marking a two-year stacked increase of 56%. The success stems from services such as buy online, pick up in club, same-day delivery and ExpressPay, which blend digital convenience with BJ’s physical network.
A key advantage lies in fulfillment, with more than 90% of digital orders processed through clubs. This model not only drives efficiency but also enhances member loyalty. BJ’s sees digitally engaged customers as twice as valuable as traditional shoppers, as they spend more and renew more often. The company’s mobile app has become central to this engagement, with more than half of members using it to clip coupons, locate products and even preorder deli items. That shift supported record membership fee income of $123.3 million, up 9% year over year.
Membership continues to be a growth driver, reaching an all-time high of 8 million. Higher-tier memberships now represent 41% of the base, a sign of deeper engagement. Management emphasizes that digital adoption is not simply an add-on but a cornerstone of the company’s strategy to improve convenience and strengthen retention, particularly as consumers adapt spending habits to a tougher macroeconomic backdrop.
Peers Accelerating in the Digital Race: Walmart & Costco
Walmart Inc. WMT is aggressively scaling its digital ecosystem with second-quarter fiscal 2026 e-commerce sales soaring 25% globally, led by 26% growth in Walmart U.S. and Sam’s Club. Walmart highlighted that store-fulfilled pickup and delivery rose nearly 50%, while membership income and advertising revenues surged in double digits, reinforcing its omnichannel model. AI investments, including the launch of Sparky, Walmart’s AI assistant, aim to further personalize the shopping experience.
E-commerce continued to stand out for Costco Wholesale Corporation COST with comparable sales climbing 13.6% for the fourth quarter of fiscal 2025, or 13.5% after adjusting for fuel and currency impacts. Momentum was even stronger in August when the metric surged 18.4%. For the fiscal year, Costco reported e-commerce comparable sales growth of 15.6%, reinforcing the importance of the company’s investments in omnichannel capabilities.
Conclusion
For BJ’s, the challenge will be sustaining this momentum against formidable competitors while continuing to expand digital capabilities. The company’s hybrid approach, tightly integrating physical clubs with online services, offers a differentiated path to growth. If BJ’s can maintain its pace of digital adoption while driving deeper membership penetration, it may remain well-positioned to capture long-term opportunities in a rapidly evolving retail landscape.
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The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

BJ's Wholesale Club Digital Push Lifts Sales and Membership Growth

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Friday, shares of BJ's Wholesale Club Holdings Inc (Symbol: BJ) entered into oversold territory, hitting an RSI reading of 29.4, after changing hands as low as $91.59 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 58.2. A bullish investor could look at BJ's 29.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of BJ shares:
Looking at the chart above, BJ's low point in its 52 week range is $81.63 per share, with $121.10 as the 52 week high point — that compares with a last trade of $92.90.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

BJ's Wholesale Club Holdings Becomes Oversold (BJ)

BJ's Wholesale Club Holdings, Inc. BJ is stepping firmly into the digital era as its latest quarter underscores the growing importance of technology in shaping member engagement. In the second quarter of fiscal 2025, digitally enabled comparable sales climbed 34% year over year, with two-year stacked growth of 56%. Services like buy online pick up in club, same-day delivery and ExpressPay have been central to this momentum, integrating e-commerce with the company’s physical footprint.
Management highlighted that more than 90% of digital orders are fulfilled by clubs. The company sees digitally engaged members as twice as valuable compared to in-club-only shoppers due to larger basket sizes and stronger renewal rates. The app has become the primary touchpoint. More than half of active members now use it regularly to clip coupons, locate products or preorder deli items. This explains why membership fee income reached a record $123.3 million in the second quarter, up 9% from last year.
Importantly, the digital push aligns with BJ's Wholesale Club’s broader goal of driving convenience and improving member retention. With membership climbing to a record 8 million and higher-tier penetration hitting 41%, management views digital integration as central to sustaining growth. As macro pressures shape consumer habits, BJ’s focus on omnichannel convenience positions it well to remain relevant.
BJ's Wholesale Club is continuing to invest in digital capabilities and sees this as a cornerstone for future growth, especially as consumer preferences shift toward hybrid retail experiences.
Digital Growth at Walmart and Costco
Walmart Inc. WMT is aggressively scaling its digital ecosystem with second-quarter fiscal 2026 e-commerce sales soaring 25% globally, led by 26% growth in Walmart U.S. and Sam’s Club. Walmart highlighted that store-fulfilled pickup and delivery rose nearly 50%, while membership income and advertising revenues surged in double digits, reinforcing its omnichannel model. AI investments, including the launch of Sparky, Walmart’s AI assistant, aim to further personalize the shopping experience.
E-commerce continued to stand out for Costco Wholesale Corporation COST with comparable sales climbing 13.6% for the fourth quarter of fiscal 2025, or 13.5% after adjusting for fuel and currency impacts. Momentum was even stronger in August, when the metric surged 18.4%. For the fiscal year, Costco reported e-commerce comparable sales growth of 15.6%, reinforcing the importance of the company’s investments in omnichannel capabilities. Costco continues to integrate online and in-club experiences, using digital tools to boost convenience and member loyalty.
What the Latest Metrics Say About BJ's Wholesale Club
BJ's Wholesale Club stock has risen 24.7% over the past year, against the industry’s decline of 10.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, BJ's Wholesale Club’s forward 12-month price-to-earnings ratio stands at 21.81, higher than the industry’s ratio of 20.12. BJ carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BJ's Wholesale Club’s current financial-year sales and earnings per share implies year-over-year growth of 4.9% and 6.7%, respectively.
Image Source: Zacks Investment Research
BJ's Wholesale Club currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is BJ's Wholesale Becoming a Digital Powerhouse in Retail Clubs?

As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy -- they expect to make money. So let's look at two noteworthy recent insider buys.
At Eastman Chemical, a filing with the SEC revealed that on Wednesday, CCO Brad A. Lich bought 3,280 shares of EMN, for a cost of $68.49 each, for a total investment of $224,647. So far Lich is in the green, up about 3.1% on their purchase based on today's trading high of $70.63. Eastman Chemical is trading up about 2.9% on the day Friday. This purchase marks the first one filed by Lich in the past twelve months.
And at BJ's Wholesale Club Holdings, there was insider buying on Tuesday, by Director Steven L. Ortega who bought 2,080 shares for a cost of $96.09 each, for a trade totaling $199,867. Before this latest buy, Ortega purchased BJ at 2 other times during the past year, for a total cost of $398,897 at an average of $95.09 per share. BJ's Wholesale Club Holdings is trading up about 0.3% on the day Friday. So far Ortega is in the green, up about 1.8% on their purchase based on today's trading high of $97.81.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Friday 8/29 Insider Buying Report: EMN, BJ

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Wednesday, shares of BJ's Wholesale Club Holdings Inc (Symbol: BJ) entered into oversold territory, hitting an RSI reading of 26.9, after changing hands as low as $52.83 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 37.7. A bullish investor could look at BJ's 26.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of BJ shares:
Looking at the chart above, BJ's low point in its 52 week range is $43.25 per share, with $74.0899 as the 52 week high point — that compares with a last trade of $53.48.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

BJ's Wholesale Club Holdings, Inc.

Price history and volume

Shares 360

Investment risk — medium

Investment potential — low

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