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.

Сильный индекс, незначительно упал. Быки в растерянности.

Strong index, slightly down. The bulls are confused.

Сильный индекс, значительно вырос. Рынок на стороне быков.

Strong index, significantly up. The market is on the bulls' side.

Сильный индекс, значительно вырос. Приток средств в лонги на высоком уровне.

Strong index, significantly up. Inflow of funds into longs at a high level.

Target Corporation’s TGT digital business is becoming much more than an online sales channel. Instead, the company is steadily building a broader digital ecosystem in which shopping, memberships, advertising and marketplace offerings reinforce one another.
Digital comparable sales rose 8.9% in the first quarter of fiscal 2026, comfortably outpacing store comparable growth of 4.7%. The strongest contributor was same-day delivery, which rose more than 27%, supported by growing adoption of Target Circle 360. At the same time, non-merchandise revenues climbed nearly 25%, driven by Roundel advertising, Target Circle 360 membership revenues and the expanding Target+ marketplace.
Management’s commentary revealed that these businesses are becoming increasingly interconnected. First-party digital sales advanced nearly 9%, while Target+ gross merchandise volume jumped nearly 60%. Target also highlighted that higher-margin businesses such as Roundel and Target+ contributed to gross margin improvement, demonstrating that digital expansion is creating value beyond transaction growth.
Another noteworthy aspect is that Target continues to leverage its store network to strengthen digital capabilities rather than replace physical retail. More than 95% of sales are fulfilled through stores, allowing investments in remodels and supply-chain improvements to enhance both in-store shopping and digital fulfillment. Management is also simplifying fulfillment processes and investing in technology to support rising digital demand without compromising store operations.
These developments indicate that Target is building an integrated digital structure that helps it engage customers across multiple touchpoints.
How Target Compares With Walmart and BJ’s Wholesale
Walmart Inc. WMT is also strengthening its digital ecosystem by integrating e-commerce, marketplace, advertising and membership into a unified platform. Walmart reported 26% global e-commerce growth, with U.S. advertising up 36%, marketplace sales rising nearly 50% and Walmart+ delivering record first-quarter net additions. Management also highlighted faster store-fulfilled delivery and expanding AI capabilities, reinforcing how Walmart is creating multiple digital engagement and monetization channels beyond traditional retail sales.
BJ's Wholesale Club Holdings, Inc. BJ is taking a membership-led approach to digital ecosystem expansion. BJ’s Wholesale delivered 28% digitally enabled comparable sales growth, supported by stronger adoption of curbside pickup, same-day delivery and ExpressPay. Management noted that most digital orders are fulfilled through clubs, while ongoing AI investments are improving operations and member convenience. By combining digital services with its membership model, BJ’s Wholesale is steadily deepening engagement across multiple shopping touchpoints.
What the Latest Metrics Say About Target
Target has seen its shares jump 7.6% over the past three months against the industry’s decline of 1.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 15.88, lower than the industry’s ratio of 30.58. However, TGT is trading above its 12-month median level of 14.05.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Target’s current financial-year sales and earnings per share implies year-over-year growth of 3.9% and 10.3%, respectively. For the next fiscal year, the consensus estimate indicates a 2.9% rise in sales and 6.4% growth in earnings.
The consensus estimate for earnings per share for the current and next fiscal year has increased by 2 cents and 3 cents to $8.35 and $8.89, respectively, over the past 60 days.
Image Source: Zacks Investment Research
Target currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Target Is Quietly Building a Stronger Digital Ecosystem Than Expected

Key Points
BJ's offers Costco's membership-driven model with a smaller footprint, lower valuation, and greater expansion potential.
Costco remains the higher-quality business, but its premium valuation may limit future investment returns.
Growth-oriented investors may find BJ's a better value, accepting higher risk for potentially stronger long-term upside.
There is a reason Costco Wholesale (NASDAQ: COST) is one of the most beloved stocks in retail. Its membership model prints reliable, high-margin profit, its renewal rates sit above 90%, and it keeps opening warehouses around the world.
Costco is a genuinely compelling investment. But it is also expensive, and I think a smaller rival running the same playbook could be an even better buy today: BJ's Wholesale Club (NYSE: BJ).
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Why Costco is so compelling
Costco's magic is that it barely relies on selling merchandise for profit. It makes its money on membership fees, a recurring and sticky revenue stream that holds up in any economy. With more than 900 warehouses worldwide and members who almost never leave, Costco is a dependable compounding machine. The only knock is the price tag. The stock trades at a rich premium, which means a lot of future success is already baked in.
Why BJ's could be an even better buy
BJ's also runs the warehouse-club model, charging annual fees for access to bulk goods and cheap gas, and its membership income is growing at a healthy clip near 10%. Here is the key difference: scale. BJ's operates roughly 263 clubs, mostly in the eastern United States, versus Costco's more than 900. That smaller base is the opportunity, because BJ's has far more room to grow relative to its size. Its recent push into new markets like Texas is running well ahead of plan, and each new club it opens moves the needle far more than a new warehouse does for a company of Costco's size.
Just as important, BJ's trades at a meaningfully cheaper valuation than Costco. You get the same attractive membership economics, a longer runway of store expansion ahead, and a friendlier entry price. For an investor focused on growth, that combination can translate into better returns.
The catch worth naming
I would not pretend that BJ's is the higher-quality business. Costco is more proven, more global, boasts stronger renewal rates, and has a wider moat. BJ's is regional and more concentrated, its margins are thinner, and after a strong run, its shares are no longer dirt cheap on their own history. This is the higher-upside, higher-risk pick, not the safer one.
If you want the bluest of blue chip retailers, Costco remains a wonderful, if pricey, choice, and there is nothing wrong with owning it. But if you are hunting for the better value with more room to grow, BJ's Wholesale offers the same winning membership model at a fraction of the size and a lower price. To me, that makes it the more compelling buy right now, as long as you are comfortable with a smaller, regional challenger still proving how far it can expand.
Should you buy stock in BJ's Wholesale Club right now?
Before you buy stock in BJ's Wholesale Club, consider this:
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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 Is a Compelling Investment Opportunity, but This Stock Could Be an Even Better Buy

Costco Wholesale Corporation COST continues to demonstrate that its membership model remains one of the strongest drivers of profitability. The biggest opportunity lies in expanding the executive membership base rather than simply adding more members. While total paid memberships increased 4.1% year over year to 82.9 million during the third quarter of fiscal 2026, executive memberships climbed a much faster 9.6%, reflecting stronger adoption of the premium tier. This trend matters because executive members typically shop more often, spend more during each visit and generate higher recurring membership income, creating a more attractive earnings mix.
Management highlighted that membership fee income rose 10.7% year over year to $1,373 million, with part of the improvement coming from the September 2024 fee increase. Excluding the fee increase and foreign exchange, membership income still advanced 7%, driven by membership growth and continued upgrades into executive memberships.
Costco ended the quarter with 41.2 million paid executive memberships. Executive members accounted for 75% of worldwide sales. The company also launched the executive program in China during the quarter and described early adoption as stronger than expected, creating another avenue for premium membership expansion.
Management also noted that executive growth is being supported by both existing Gold Star members upgrading and new customers choosing the premium tier from the outset. Enhanced benefits, including extended warehouse hours and Instacart incentives, are encouraging higher adoption. Continued penetration of executive members has the potential to steadily strengthen Costco's earnings profile through richer membership income and higher member engagement.
How WMT & BJ's Membership Growth Compares With Costco
Costco is not the only retailer benefiting from a stronger membership ecosystem. Walmart Inc. WMT continues to deepen engagement through Walmart+, with membership fee revenues rising 17.4% globally in the first quarter of fiscal 2027 and Walmart+ recording a record level of net additions. Management noted that membership has become an increasingly important profit stream, with members spending significantly more than non-members and utilizing benefits such as fuel savings and faster delivery.
BJ's Wholesale Club Holdings, Inc. BJ reported robust membership trends. Membership fee income increased 9.9% year over year to a record $132.4 million during the first quarter of fiscal 2026, supported by strong member acquisition, retention and higher-tier membership penetration. BJ's Wholesale emphasized that higher-tier members remain more engaged, shop more frequently and generate greater lifetime value.
Both Walmart and BJ’s Wholesale demonstrate that a growing base of loyal, higher-value members can drive recurring revenues, stronger engagement and long-term sales growth.
What the Latest Metrics Say About Costco
Costco has seen its shares tumble 5% over the past three months compared with the industry’s decline of 1.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 42.84, higher than the industry’s ratio of 30.91. However, it is trading below its 12-month median level of 46.39, indicating some moderation in valuation despite sustained investor confidence in the stock.
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 9.4% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.8% rise in sales and 10.2% growth in earnings.
The consensus estimate for earnings per share for the current and next fiscal year has increased by 5 cents and 6 cents to $20.38 and $22.46, respectively, over the past 30 days.
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 Executive Penetration Could Unlock More Earnings

Key Points
It has a resilient business model that does well in all kinds of economic conditions.
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Many dividend stocks offer the safety and passive income that investors need to protect their portfolios in uncertain times. Whether you're looking for a safe stock or reliable passive income at all times, Realty Income (NYSE: O) is an excellent candidate.
1. The resilient model
Realty Income is a real estate investment trust (REIT), and it's one of the largest in the world, with nearly 15,600 global properties. It's a retail REIT, which means it leases its properties to retailers, and it works with tenants that sell essentials, which is why they're largely resilient. More than 20% of properties are grocery and convenience stores, which can do well in any economy. Some of its top clients include Dollar General, BJ's, and Tractor Supply.
Even during the worst of the COVID-19 pandemic, when many stores closed their doors, and some couldn't pay their rent, Realty Income's occupancy rate fell to 97.9%. Today, it's 98.9%.
Over the past few years, Realty Income has entered new industries to expand its business and diversify. Today, retail accounts for almost 80% of the total, and it has a presence in industrials, gaming, and more. It's also moving more into Europe, and the U.K. accounts for nearly 15% of the total portfolio.
The company has a large pipeline of new properties to buy to keep it in growth mode, and it has a high selectivity rate to ensure quality. It sourced more than $500 billion in volume from 2019 through 2026 and deployed $72 billion in capital.
It also sees a $14 trillion addressable market, including new opportunities in data centers, which implies a long growth runway.
2. The high yield
REITs are a financial structure where companies pay 90% of their earnings in dividends, which is why you'll frequently see REITs in a great dividend investment portfolio. Realty Income's dividend yield is 5.3% at the current price, or nearly five times the S&P 500 average of 1.1%.
Dividend investors love high yields because they get a higher return on their investment, meaning their money works harder for them while they enjoy the passive income.
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Sometimes, a high yield can be a warning. Many of the top dividend companies offer a low yield because they're past their high growth stages and are using their earnings for operations. They have other attractive features, like growth and reliability.
Realty Income, though, has a long and reliable track record in addition to its high yield. It also has an extra, unusual perk: It pays the dividend monthly. It has been paying a dividend for 672 months, which translates into 56 years, without skipping a beat. That's under all kinds of economic conditions, indicating impeccable trust. Realty Income has also raised the dividend for the past 115 consecutive quarters, or more than 28 years.
Despite the challenging real estate environment, Realty Income continues to perform well. Adjusted funds from operations (AFFO), the standard bottom-line metric for REITs, increased 6.6% year over year to $1.13 in the first quarter, and its rent recapture rate, which is how much more it's getting for released properties, was 103.4%.
With this kind of performance, shareholders know they can count on Realty Income to continue providing passive income and creating long-term shareholder value.
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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.

3 Reasons Realty Income Stock Belongs in Every Dividend Investor's Portfolio

BJ's Wholesale Club Holdings, Inc. BJ is solidifying its position as a compelling retail stock to watch, supported by record-breaking membership metrics. The company generated $132.4 million in membership fee income in the first quarter of fiscal 2026, up 9.9% from the prior year, as total members reached an all-time high. Management attributed the gain to acquisition, retention and higher-tier membership penetration across both new and existing clubs.
The membership base is expanding and becoming more valuable. Management said higher-tier members are more engaged, shop more often and deliver greater lifetime value. The company maintained a 90% tenured membership renewal rate and reported more than 8 million members, with 42% higher-tier penetration.
This strong membership foundation also underpins steady customer traffic and ongoing market share gains. This was evident as BJ’s expanded operations in Texas, its 22nd state. In May 2026, BJ indicated that membership acquisition across the four new Texas clubs was running an impressive 33% ahead of plan, amassing approximately 100,000 members in the Dallas-Fort Worth region alone.
BJ's noted that membership fee income has grown every year for more than 25 years. The metric has expanded at an 8% CAGR from fiscal 1997 through fiscal 2025. That kind of consistency gives the latest quarter more weight, especially in a retail environment where consumer spending remains uneven. Management did caution that membership fee income growth should moderate as the company laps last year's fee increase. However, the underlying health of this engine remains exceptionally strong.
The committed shoppers provide BJ’s with a recurring membership-fee stream. The reliable, high-margin revenues generated by these loyal members give the warehouse club operator a distinct competitive advantage and substantial financial durability during dynamic economic periods.
Walmart & Costco: Membership Momentum Remains Strong
Walmart Inc. WMT continues to deepen engagement through Walmart+, with membership fee revenues rising 17.4% globally in the first quarter of fiscal 2027 and Walmart+ recording a record level of net additions. Management noted that membership has become an increasingly important profit stream, with members spending significantly more than non-members and utilizing benefits such as fuel savings and faster delivery.
Costco Wholesale Corporation’s COST membership model appears to be gaining strength not simply through member additions, but through deeper engagement. Costco’s membership fee income increased 10.7% year over year to $1,373 million during the third quarter of fiscal 2026. Executive members reached 41.2 million at quarter-end, up 9.6% from the prior year, far outpacing overall paid membership growth of 4.1%. With executive members representing 75% of sales and early adoption strong in China, Costco continues to benefit from loyalty and higher-tier penetration.
What the Latest Metrics Say About BJ's Wholesale
BJ's Wholesale has seen its shares tumble 26.5% over the past year compared with the industry’s decline of 10.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, BJ's forward 12-month price-to-earnings ratio stands at 17.99, lower than the industry’s ratio of 18.13 and the median level of 20.57. BJ carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BJ’s current financial-year sales and earnings per share implies year-over-year growth of 9.3% and 2.5%, respectively. For the next fiscal year, the consensus estimate indicates a 7.1% rise in sales and 8.5% growth in earnings.
Image Source: Zacks Investment Research
BJ 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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Why Membership Trends Make BJ's Wholesale a Retail Stock to Watch

Costco Wholesale Corporation’s COST membership model appears to be gaining strength not simply through member additions, but through deeper engagement. The latest quarter saw high renewal rates, rising executive membership penetration and solid membership income growth, suggesting member loyalty remains intact.
Membership fee income increased 10.7% year over year to $1,373 million during the third quarter of fiscal 2026. While part of the gain reflected the membership fee increase implemented in September 2024, management noted that membership income still grew 7%, excluding the fee increase and foreign exchange impacts, driven by member growth and executive membership upgrades.
The most notable development was the continued expansion of executive memberships. Executive members reached 41.2 million at quarter-end, up 9.6% from the prior year, far outpacing overall paid membership growth of 4.1%. The company also launched its executive membership program in China and reported stronger-than-expected early adoption. Executive members accounted for 75% of sales, underscoring their importance to the overall membership ecosystem.
Management emphasized that executive members typically shop more often and spend more than standard members, making this mix shift particularly meaningful for the overall membership ecosystem.
Renewal metrics also remained exceptionally strong. Costco reported a 92.2% renewal rate in the United States and Canada and an 89.7% renewal rate worldwide. Management highlighted that targeted digital communication and retention initiatives helped offset pressure from the growing mix of online sign-ups, which historically renew at lower rates.
Taken together, rising executive penetration, resilient renewals and sustained membership income growth indicate that Costco is not only retaining members effectively but also increasing the value it derives from each membership relationship.
Walmart & BJ’s Wholesale: Membership Momentum Remains Strong
Costco is not the only retailer benefiting from a stronger membership ecosystem. Walmart Inc. WMT continues to deepen engagement through Walmart+, with membership fee revenues rising 17.4% globally in the first quarter and Walmart+ recording a record level of net additions. Management noted that membership has become an increasingly important profit stream, with members spending significantly more than non-members and utilizing benefits such as fuel savings and faster delivery.
BJ's Wholesale Club Holdings, Inc. BJ reported robust membership trends. Membership fee income increased 9.9% year over year to a record $132.4 million, supported by strong member acquisition, retention and higher-tier membership penetration. Management emphasized that higher-tier members remain more engaged, shop more frequently and generate greater lifetime value.
Like Costco, both Walmart and BJ’s Wholesale are demonstrating that a growing base of loyal, higher-value members can drive recurring revenues, stronger engagement and long-term sales growth.
What the Latest Metrics Say About Costco
Costco has seen its shares tumble 1.4% over the past three months against the industry’s growth of 2.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 43.14, higher than the industry’s ratio of 31.26. However, it is trading below its 12-month median level of 46.55, indicating some moderation in valuation despite sustained investor confidence in the stock.
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 9.4% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.8% rise in sales and 10.2% growth in earnings.
The consensus estimate for earnings per share for the current and next fiscal year has increased by 5 cents and 6 cents to $20.38 and $22.46, respectively, over the past 30 days.
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.

Is Costco Wholesale's Membership Model Getting Even Stronger?

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BJ's (BJ) Q1 2026 Earnings Call Transcript

BJ's (BJ) Q2 2025 Earnings Call Transcript

BJ’s Wholesale Club Holdings, Inc. BJ delivered first-quarter fiscal 2026 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Results reflected strong membership trends, robust fuel demand, accelerating digital engagement and continued traffic growth. Management highlighted momentum in higher-tier memberships, strength in newly opened clubs and continued market-share gains, particularly in fuel and digitally enabled sales.
BJ’s First-Quarter Insights
BJ’s Wholesale Club reported adjusted earnings of $1.10 per share, which beat the Zacks Consensus Estimate of $1.04. However, the metric declined 3.5% from the year-ago quarter due to lapping a prior-year tax benefit tied to stock-based compensation.
This operator of membership warehouse clubs generated total revenues of $5,661.5 million, which increased 9.9% year over year and surpassed the Zacks Consensus Estimate of $5,435 million. Net sales climbed 9.9% to $5,529.1 million, while membership fee income rose 9.9% to $132.4 million, driven by strong member acquisition, retention and higher-tier membership penetration. We had expected membership fee income growth of 7%.
Total comparable club sales increased 6.3% year over year in the reported quarter. Excluding gasoline sales, comparable club sales improved 1.5%, reflecting healthy merchandise demand and traffic growth. However, it came below our estimate of 1.7% growth. Digitally enabled comparable sales jumped 28%, following two-year stacked growth of 63%, supported by higher adoption of curbside pickup, same-day delivery and ExpressPay services.
Management noted that fuel volumes remained particularly strong during the quarter, with comparable gasoline gallons increasing nearly 8%, significantly outperforming the broader market. The company also highlighted positive traffic growth and market-share gains across its business.
BJ's Wholesale Club Holdings, Inc. Price, Consensus and EPS Surprise
BJ's Wholesale Club Holdings, Inc. price-consensus-eps-surprise-chart | BJ's Wholesale Club Holdings, Inc. Quote
A Look at BJ’s Margins
Gross profit increased to $1.03 billion in the first quarter from $969.5 million in the year-ago period. However, the merchandise gross margin rate, excluding gasoline sales and membership fee income, declined nearly 10 basis points year over year. The decrease was primarily due to continued investments in pricing, partially offset by tariff refund benefits recognized during the quarter.
Operating income rose 2.1% year over year to $207.9 million. Adjusted EBITDA increased 4.3% to $298.1 million, reflecting solid operational execution and continued leverage from membership growth.
Selling, general and administrative expenses jumped to $806 million from $760.9 million in the prior-year quarter. The increase mainly reflected higher labor, occupancy and operational costs associated with new club and gas station openings, along with higher depreciation expenses due to an increase in owned clubs.
BJ’s Membership Strength & Expansion Efforts
BJ’s Wholesale Club continued to expand the size and quality of its membership base during the quarter. Membership fee income reached an all-time high, supported by strong acquisition trends, retention and higher-tier membership penetration. The company maintained a 90% tenured membership renewal rate and reported more than 8 million members.
During the quarter, BJ’s opened one new club and six new gas stations, including its first club in Texas, expanding operations into its 22nd state. In May, the company opened three additional Texas clubs and indicated that membership in the Dallas-Fort Worth market is running well ahead of expectations. Management stated that the Texas openings are among the strongest in the company’s history, with membership tracking 33% ahead of plan.
The company reiterated plans to open 25-30 new clubs over fiscal 2027 and 2028 combined while remaining on track to open 12 clubs in fiscal 2026.
BJ’s Wholesale Financial Snapshot
BJ’s Wholesale Club ended the quarter with cash and cash equivalents of $27.8 million, while total debt stood at $774.2 million. Stockholders’ equity totaled $2,126.3 million.
Net cash provided by operating activities was $140 million in the quarter. Adjusted free cash flow came in at negative $42 million due to elevated capital expenditures tied to club expansion and distribution network investments. Capital expenditures totaled $182 million during the quarter.
During the first quarter, BJ’s repurchased approximately 2.1 million shares for $206.6 million. About $545 million remained available under the company’s existing repurchase authorization at quarter-end.
Here’s What BJ Guided
BJ’s Wholesale Club reiterated its fiscal 2026 guidance. Management continues to expect comparable club sales, excluding gasoline sales, to increase 2-3% year over year. Adjusted earnings per share are still projected in the range of $4.40-$4.60 compared with $4.40 reported in fiscal 2025.
The company also continues to expect capital expenditures of roughly $800 million in fiscal 2026, reflecting ongoing investments in new club openings and supply-chain enhancements, including its new ambient distribution center project.
Management emphasized confidence in the company’s long-term strategy, highlighting continued investments in value, membership growth, digital capabilities and expansion into new markets despite a dynamic consumer environment.
Shares of this Zacks Rank #3 (Hold) company have fallen 10.5% over the past three months compared with the industry’s decline of 13.3%.
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BJ's Q1 Earnings Beat Estimates as Membership Income Jumps 10%

For Immediate Release
Chicago, IL – May 22, 2026 – Today, Zacks Equity Research discusses BJ's Wholesale Club Holdings, Inc. BJ, Ollie's Bargain Outlet Holdings, Inc. OLLI, Grocery Outlet Holding Corp. GO and Krispy Kreme, Inc. DNUT.
Industry: Consumer Staples
Link: https://www.zacks.com/commentary/2924800/4-consumer-staples-stocks-worth-watching-amid-market-challenges
The Consumer Products-Staples industry is navigating a challenging demand environment as inflationary pressures and elevated living costs continue to weigh on consumer spending. Value-conscious shoppers are prioritizing essentials, trading down to lower-priced alternatives and reducing discretionary purchases, creating softer volume trends across several categories.
At the same time, industry players are managing elevated input, labor and transportation costs alongside rising SG&A expenses and ongoing digital investments. Companies such as BJ's Wholesale Club Holdings, Inc., Ollie's Bargain Outlet Holdings, Inc., Grocery Outlet Holding Corp. and Krispy Kreme, Inc. are focusing on operational efficiencies, value-driven offerings and strategic expansion initiatives to support profitability and long-term growth.
About the Industry
The Zacks Consumer Products-Staples industry includes companies that manufacture, market and distribute a broad range of everyday household and personal-use items. These offerings span personal care products, cleaning tools, stationery, bed and bath essentials and general household goods such as small appliances, cutlery and food-storage solutions.
Some players also participate in categories like batteries, lighting, pet food, treats and related supplies. Their products reach consumers through supermarkets, drug and grocery chains, department stores, mass merchandisers, warehouse clubs and other retail partners, while a growing share is now sold through digital channels. Several companies also supply items to perfume, cosmetics and personal-care manufacturers, as well as to third-party distributors.
Trends Shaping the Future of the Consumer Products-Staples Industry
Rising Cost Pressures in a Challenging Operating Environment: The consumer goods industry continues to face pressure from elevated costs across raw materials, labor and transportation. These higher input costs weigh on profit margins, particularly when companies are unable to fully offset them through pricing actions. Adding to the challenge are rising SG&A expenses and continued investments in digital transformation, technology and marketing initiatives to support long-term growth.
Many companies also remain exposed to supply-chain disruptions, which can lead to shipment delays and elevated freight costs, further pressuring margins. To protect profitability, industry players are increasingly undertaking restructuring measures and cost-optimization initiatives aimed at improving efficiency and strengthening operational resilience.
Heightened Consumer Spending Volatility: The Consumer Products-Staples industry is navigating elevated spending volatility amid an uncertain macroeconomic backdrop. Changing consumer behavior, particularly among lower-income households, is being influenced by persistent inflationary pressures, rising living costs and lower savings levels.
These financial constraints continue to pressure purchasing power and weigh on discretionary spending patterns across the sector. Given the industry's significant exposure to middle and lower-income consumers, companies remain vulnerable to economic headwinds that could lead to softer demand, weaker sales volumes and slower growth momentum.
Exposure to Currency Fluctuations: Global consumer staples companies remain highly sensitive to foreign-exchange volatility, with a stronger U.S. dollar posing a meaningful headwind. Currency fluctuations can reduce the value of international revenues when translated into U.S. dollars, negatively impacting reported sales and earnings performance. In such an environment, companies are often forced to balance pricing actions in overseas markets against the risk of margin pressure and reduced competitiveness.
Maximizing Revenues Through Strategic Optimization: Companies are actively pursuing strategic levers to strengthen their revenue base and long-term positioning. Investments in e-commerce and digital capabilities are expanding rapidly, supporting convenience-driven demand and higher-margin direct-to-consumer opportunities.
At the same time, innovation efforts remain focused on healthier product offerings, sustainable packaging and technology-enabled consumer engagement. Companies are also actively optimizing portfolios through acquisitions, divestitures and brand rationalization strategies, enabling more efficient capital allocation toward faster-growing and higher-return categories. Collectively, these initiatives are helping consumer staples companies remain competitive and drive incremental growth in an increasingly evolving marketplace.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Consumer Products-Staples industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #177, which places it in the bottom 27% of more than 244 Zacks industries.
The group's Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates dim near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry's position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually becoming less confident about this group's earnings growth potential. Since the beginning of March 2026, the consensus estimate for the industry's current financial-year earnings has decreased 0.8%.
Let's look at the industry's performance and current valuation.
Industry vs. Broader Market
The Zacks Consumer Products-Staples industry has lagged the S&P 500 index and the broader Zacks Consumer Staples sector over the past six months.
The industry has lost 5% over this period against the broader sector's growth of 5.3%. Meanwhile, the S&P 500 index has advanced 12.4%.
Industry's Current Valuation
On the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing consumer staple stocks, the industry is currently trading at 17.46X compared with the S&P 500's 21.85X and the sector's 16.91X.
Over the past five years, the industry has traded as high as 23.39X, as low as 17.46X and at the median of 21.21X.
4 Consumer Product Stocks to Keep a Close Eye On
Krispy Kreme: The company continues to strengthen its market presence through a differentiated brand portfolio, broad fresh-delivery network and expanding global footprint. This Zacks Rank #2 (Buy) company remains focused on enhancing consumer engagement through innovation, digital initiatives and strategic partnerships that improve product accessibility across multiple retail channels.
Its asset-light franchise model, combined with disciplined cost management and ongoing operational efficiencies, supports long-term scalability and profitability potential. In addition, Krispy Kreme continues to benefit from strong brand recognition, seasonal product launches and loyalty-driven engagement, reinforcing its position within the sweet treats and quick-service retail landscape. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Krispy Kreme's current fiscal-year loss per share has remained unchanged at 2 cents in the past seven days. The projection indicates growth of 80% from the year-ago period's level. DNUT's shares have fallen 11% in the past six months.
BJ's Wholesale Club: A leading operator of membership warehouse clubs, BJ's Wholesale Club currently carries a Zacks Rank #3 (Hold). The company continues to exhibit steady momentum, supported by its strategic emphasis on membership expansion and digital transformation initiatives. BJ remains focused on strengthening its omnichannel ecosystem while reinforcing the value-focused membership model.
These efforts have supported consistent growth in member acquisition and retention, contributing to stable membership fee income. By offering convenient solutions such as same-day delivery, buy online, pick up in club and ExpressPay, the company delivers a seamless and engaging shopping experience. In addition, BJ's Wholesale Club has been methodically expanding its physical footprint, targeting attractive growth markets and underserved regions to support long-term scalability.
The Zacks Consensus Estimate for BJ's Wholesale Club's current fiscal-year earnings per share (EPS) has decreased from $4.52 to $4.50 in the past seven days. The projection indicates growth of 2.3% from the year-ago period's level. BJ's shares have gained 4.1% in the past six months.
Ollie's Bargain: Ollie's continues to strengthen its competitive standing through a disciplined, value-focused operating model backed by effective merchandising and prudent expense management. This Zacks Rank #3 company benefits from its loyalty platform, Ollie's Army, which serves as a key strategic lever by enhancing customer engagement and encouraging repeat visits, reinforcing its position in the closeout retail space. Consistent access to compelling brand-name deals, combined with ongoing investments in supply-chain capabilities and geographic expansion, supports operational efficiency and long-term growth.
The Zacks Consensus Estimate for Ollie's current fiscal-year EPS has remained unchanged at $4.48 in the past seven days. This indicates growth of 16.1% year over year. OLLI has seen its shares declined 33.8% in the past six months.
Grocery Outlet: This Zacks Rank #3 company's differentiated value model, built on opportunistic sourcing and the Independent Operator structure, gives it distinct competitive positioning in discount retail. Grocery Outlet's dynamic assortment of brand-name bargains, complemented by targeted merchandising initiatives, strengthens customer engagement and reinforces its value leadership. Strategic initiatives — from disciplined store expansion to store refresh efforts — are aimed at enhancing productivity, broadening market reach and supporting long-term profitability.
The Zacks Consensus Estimate for Grocery Outlet's current fiscal-year EPS has remained unchanged at 51 cents over the past seven days. The projection indicates a decline of 32.9% from the year-ago period's figure. GO's shares have declined 23.1% in the past six months.
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Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	BJ	Industry	BJ	Industry	Volume, $
Yesterday 90.4 - 93.4	-2.93	3.63	3.60	1.74	88.48M
Week 89.7 - 95.9	-4.75	1.73	4.55	4.00	596.92M
Month 83.8 - 95.9	0.96	2.92	11.49	5.80	2.25B
3 Months 83.2 - 99.2	-7.09	2.11	14.38	9.42	7.87B
6 Months 83.2 - 105.8	-10.45	0.21	20.01	15.91	15.62B
Year 83.2 - 110.9	-15.50	0.59	30.04	25.95	32.55B
3 years 63.1 - 121.1	34.60	3.21	50.09	52.04	73.45B
5 years 49.0 - 121.1	73.09	29.62	72.61	76.41	109.37B
All time 9.2 - 92.4	159.47	1.10	—	—	80.34B

BJ's Wholesale Club Holdings, Inc.

Price and volatility history

Risk ratios