What Happened?
Shares of membership-only discount retailer BJ’s Wholesale Club (NYSE: BJ) fell 3.7% in the morning session as investors reacted to competitive pressures after Amazon (NASDAQ: AMZN) announced an aggressive expansion of its same-day grocery delivery service. The e-commerce giant's aggressive push to expand same-day grocery delivery to over 3,300 U.S. cities intensified competitive concerns across the grocery sector. Amazon's service will include perishable items like produce, meat, and dairy, directly challenging established players. The news impacted several grocery-related stocks, with Instacart (CART) and Kroger (KR) also seeing declines.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy BJ's? Access our full analysis report here, it’s free.
What Is The Market Telling Us
BJ’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 13.2% on the news that the company wrapped up a strong fourth-quarter (fiscal 2024), exceeding analysts' expectations for EPS despite revenue coming in line with estimates. The standout metric was a 4.6% jump in comparable club sales (excluding gas), fueled by stronger foot traffic and a 26% surge in digital sales. That's a good sign customers are staying engaged. However, total sales dipped 1.5% from the previous year because there was one less week in the quarter. Looking ahead, BJ's full-year EPS guidance missed Wall Street's forecasts, raising concerns about margin pressures and economic uncertainty. Still this was a strong quarter.
BJ's is up 19.3% since the beginning of the year, but at $105.23 per share, it is still trading 12.3% below its 52-week high of $119.94 from April 2025. Investors who bought $1,000 worth of BJ’s shares 5 years ago would now be looking at an investment worth $2,591.
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