We recently published a list of Top 8 Discount Stores Stocks For 2025. In this article, we are going to take a look at where BJ’s Wholesale Club Holdings Inc. (NYSE:BJ) stands against other top discount stores stocks for 2025.
When Donald Trump announced tariffs on China, Canada, and Mexico, stocks of most of the retail stores went down. The tariffs are likely to increase inflation and hurt the country’s economy if they continue for the duration of Trump’s term.
For investors, it is vital to keep an eye on companies that are either taking a hit on revenue directly through tariffs or losing popularity among consumers in the foreign countries involved. Some companies can take a financial hit better than others. Take for instance a company that makes branded clothing. Such a company can raise the prices of its products and its loyal consumers won’t mind. Now imagine a retail store that sells the same product. When consumers see a 10% rise in the price of the product, they blame the store, not the brand. It is the retail store that loses value in this case and that’s why the tariffs hurt them, even if they aren’t directly exposed to China.
We decided to take a look at 8 discount stores as investments in 2025. To come up with our list of 8 discount stores as investments in 2025, we only considered stocks with a market cap of at least $2 billion.
A customer happily filling up their tank at the Wholesale Club’s gasoline station.
BJ’s Wholesale Club Holdings Inc. (NYSE:BJ)
BJ’s Wholesale Club Holdings Inc. (NYSE:BJ) manages a membership-based warehouse club chain that offers a wide range of products including general merchandise, groceries, gasoline, and other services. BJ’s Wholesale Club (NYSE:BJ) sells its products through mobile apps and websites, BerkleyJensen.com, BJs.com, and Wellsleyfarms.com.
The company’s stock is trading at all-time highs. The Q3 results showed a 3.7% revenue surge with expanding margins, resulting in an 18% YoY increase in profitability. The strong performance in the first three quarters has meant that the full fiscal 2024 growth targets are now between 2.5% to 3% compared to the previous 1% to 2%. It is this exceptional performance that has seen the stock gain 60% in a year.
On top of the financial performance, the company continues to reward shareholders with buybacks. In November, the company authorized a $1 billion buyback, which was 10% of its market cap at that time. No wonder the stock’s trading at all-time highs. Even the threat of tariffs and inflation hasn’t dented the stock price!
Overall, BJ ranks 8th on our list of top discount stores stocks for 2025. While we acknowledge the potential of BJ as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as BJ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.