Jim Cramer is Talking About These 12 Stocks

8. BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ)

Number of Hedge Fund Holders: 34

Talking about BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ), Cramer said that he likes the stock. Cramer said, “This thing sells 21 times earnings.” It is a Massachusetts-based company that operates a network of warehouse clubs across the eastern United States. Since its inception in 1984, the company has established a significant presence, currently managing 244 clubs and 178 BJ’s Gas locations across 20 states.

It offers a diverse range of products, including groceries, general merchandise, gasoline, and various other services. It offers its products online through its websites, BJs.com, BerkleyJensen.com, and Wellsleyfarms.com alongside a dedicated mobile app.

The second quarter marked the tenth consecutive quarter of increased customer traffic, which shows a strong upward trend in business performance. BJ’s Wholesale (NYSE:BJ) reported a 9% rise in membership fees and it was the highest growth in member count since the onset of the pandemic.

The surge was further supported by significant increases in premium tier memberships and impressive renewal rates, which is evidentiary of a positive response from the customer base. During the earnings call, management mentioned that the digital segment is also thriving, with substantial growth that positions the company well for future opportunities.

BJ’s Wholesale (NYSE:BJ) repurchased 451,982 shares of common stock in the second quarter, amounting to approximately $40.4 million. Over the first half of fiscal 2024, a total of 857,092 shares were bought back, totaling $70.6 million. With $118.7 million still available for further repurchases, the company remains focused on returning value to shareholders.

ClearBridge Investments 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.”