With its footprint mostly on the East Coast, investors in much of the country may know little about BJ's Wholesale (NYSE: BJ) . The regional warehouse club has often struggled to gain traction amid intense retail competition. However, the pandemic may have become a long-term game changer for the regional warehouse retailer, setting it up for a sturdier, more successful future.
Before the pandemic, BJ's did not look like a stock worth buying. It has long faced heavy debt levels, negligible sales growth, and modest cash flows. Moreover, the international presence and more rapid growth of Costco (NASDAQ: COST) and Walmart 's (NYSE: WMT) Sam's Club overshadowed the regional retailer.
Nonetheless, BJ's growth prospects changed almost overnight as the pandemic brought customers into its warehouses and sent growth dramatically higher. Given customers' unprecedented demand for groceries, cleaning supplies, and paper products, the company credits BJ's value, bulk sizes, and product selection with its recent success.
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