We recently published an article titled, Jim Cramer is Talking About These 12 Stocks. In this article, we are going to take a look at where BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) stands against the other stocks that Jim Cramer has talked about.

During September 30’s episode of Mad Money, CNBC’s Jim Cramer delved into the previous three months and the market’s events. He identified some positive developments amidst the turbulence in the market.

Cramer highlighted that Dow inched up 17%, the S&P 500 went up 42% while Nasdaq gained 38% during the months. He remarked, “For once, good news was actually good news and interesting.” He went on to say that miracles still happened in the stock market’s third quarter. He pointed out that July, August, and September yielded remarkable returns, even highlighting the typically troublesome month of September, which saw the broader market rising significantly.

Cramer elaborated on the lead-up to the Federal Reserve’s decision to cut rates by 50 basis points. He characterized the economic landscape as having “no landing at all,” explaining that the economy continued to grow, inflation decreased, and unemployment ticked up. He suggested that the central bank laid the groundwork for a significant rate cut, which was the reason that there was no panic on Wall Street after the cut. The former hedge fund manager also praised Federal Reserve Chair Jerome Powell for achieving the challenging feat of a double rate cut without shocking the markets.

Moving on, Cramer talked about how the market’s breadth expanded as well, with many sectors gaining traction beyond the dominant Magnificent Seven tech stocks. He noted that a variety of industries, including banks, utilities, retail, healthcare, housing, and transportation, enjoyed their moment in the spotlight.

As for the upcoming election, he referenced Michael Cembalest of J.P. Morgan Asset Management, who described it as “the most polarized election in 100 years.” Cramer observed that, despite the political drama surrounding the elections, Wall Street remained largely unfazed, even in response to significant events like Vice President Kamala Harris potentially replacing President Biden on the Democratic ticket and the attempted assassination of former President Donald Trump.

Cramer also highlighted a shift in the housing market, pointing out the first signs of relief from formerly soaring inflation figures. He suggested that an increase in available homes could be the breakthrough needed to address this intractable asset class that has resisted price declines.

In terms of international markets, he noted that the Chinese market staged a rally, even in light of dismal economic news, owing some of this movement to government-ordered buybacks and influxes of capital.

Cramer commented on the ongoing speculation about stagflation, particularly concerning oil prices, reminiscent of the oil crisis in 1973. He addressed the ongoing conflict in the Middle East, mentioning that Saudi Arabia had abandoned its unofficial price target of $100 per barrel in favor of increasing production.

While many believe that oil prices could soar at any moment, Cramer expressed skepticism, suggesting that although a spike could still occur due to geopolitical factors, he thinks those fears may be overstated.

Reflecting on the past nine months, he concluded that despite the potential for stagflation, 2024 has surprisingly turned out to be a great year for the stock market, defying expectations.

Our Methodology

For this article, we compiled a list of 12 stocks that Jim Cramer mentioned during his episode of Mad Money on September 30. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

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.”

Overall, BJ ranks 8th on our list of stocks Jim Cramer is talking about. While we acknowledge the potential of BJ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BJ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Read Next: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. This article is originally published at Insider Monkey.