8. BJ’s Wholesale Club Holdings (NYSE:BJ)
Number of Hedge Fund Holders: 43
BJ’s Wholesale Club Holdings (NYSE:BJ) is a membership-only warehouse chain offering an elaborate assortment of goods. These include a wide range of items, including groceries and general merchandise and services. The company also offers specialty services and operates approximately 244 clubs and 175 gas locations across 20 states.
The company reported a 1.5% year-over-year growth in comparable club sales in fiscal Q3 2024. Comparable club sales, excluding gasoline sales, increased by 3.8% year-over-year. This growth was attributed to strong traffic. Similarly, BJ’s Wholesale Club Holdings (NYSE:BJ) reported a 30.0% growth in digitally enabled comparable sales growth, reflecting a two-year stacked comparable growth of 47.0%.
BJ’s Wholesale Club Holdings (NYSE:BJ) opened four new gas stations and three new clubs in the quarter, reflecting the strength of its operations. It also delivered robust membership growth and hit a milestone of 7.5 million members. In November, the company authorized a $1 billion buyback, 10% of its market cap at the time. BJ’s Wholesale Club Holdings (NYSE:BJ) ranks eighth on our list of the 10 best discount store stocks to invest in.
ClearBridge SMID Cap Growth Strategy stated the following regarding BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) in its Q2 2024 investor letter:
“Stock selection in the consumer staples sector also proved beneficial, primarily driven by our holdings in Casey’s General Stores (CASY) and BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ). BJ’s, which operates warehouse clubs providing perishable, general merchandise, gasoline and other ancillary services, continues to exceed expectations. With inflation continuing to weigh on consumer spending, the company’s membership channel continues to grow due to its perceived value to customers.”
