BJ’s Wholesale Club (BJ) ZACKS·2024-12-20 18:16Core Insights - BJ's Wholesale Club has opened its 40th club in Florida, featuring an on-site gas station and a Fuel Saver Program to provide low fuel prices [1] - The company is expanding its footprint, having opened three new clubs and four gas stations in Q3 of fiscal 2024, aiming to exceed its goal of 250 clubs by the fiscal year-end [2] Membership and Savings - BJ's members can maximize savings by combining BJ's coupons with manufacturers' coupons, and enjoy low fuel prices at its 182 gas locations through the Fuel Saver Program [3] - The company offers savings of up to 25% on grocery prices, with a 100% money-back membership guarantee [4] Growth Factors - BJ's growth is driven by simplifying product assortments, enhancing marketing, and expanding into high-demand categories, resulting in an 8.4% year-over-year increase in membership-fee income in Q3 of fiscal 2024 [5] - Membership reached 7.5 million, supported by strong renewal rates and effective member acquisition strategies [5] Operational Performance - The company reported a 3.8% growth in comparable club sales (excluding gas) in Q3, with traffic contributing over 4 percentage points to this increase [6] - Despite challenges like the East Coast port strike and hurricanes, BJ's exceeded expectations, demonstrating the resilience of its business model [6] Market Performance - BJ's shares have increased by 15.4% over the past three months, outperforming the industry's decline of 1.8% and the S&P 500's growth of 3.3% [14] - The stock is currently priced at a premium, with a forward price-to-earnings ratio of 22.59X compared to the industry's 7.33X, indicating that growth potential may already be reflected in the stock price [15]