BJ - BJ's Wholesale Club: Still Losing To Costco
2024-03-14 07:57:00 ET
Summary
- BJ's Wholesale had another year of underperformance compared to its larger and higher-quality peers.
- The company continues to lose market share to Costco, growing revenues, memberships, and footprint at a lower pace.
- Investors should look beyond the company's relatively low P/E, and understand its discount is justified.
BJ's Wholesale Club ( BJ ) has a medium-sized club model, which seeks to benefit from the stability of the membership income while providing a differentiated proposition in the wholesale landscape.
Investors seeking exposure to the industry turn to BJ's because of its relatively low valuation compared to the likes of Costco ( COST ) and Walmart ( WMT ), but so far, the decision to prefer valuation over quality has led to underperformance....
BJ's Wholesale Club: Still Losing To Costco