If you’re looking for a stock with a proven track record of exceeding earnings expectations, BJ’s Wholesale Club (BJ) is worth considering. This wholesale membership warehouse operator has consistently outperformed analysts’ projections, particularly in the last two quarters. Its average surprise for the past two quarters stands at a healthy 3.56%.
In the most recent quarter, BJ’s surpassed expectations by reporting $0.85 per share, exceeding the anticipated $0.83 per share by 2.41%. Similarly, in the preceding quarter, the company delivered $1.11 per share, exceeding the consensus estimate of $1.06 per share by 4.72%.
This history of exceeding expectations has led to a trend of increasing estimates for BJ’s. Furthermore, the stock’s positive Zacks Earnings ESP (Expected Surprise Prediction) strengthens the likelihood of another earnings beat. This metric, when combined with a favorable Zacks Rank, indicates a high probability of exceeding earnings expectations. Research suggests that stocks with a positive Earnings ESP and a Zacks Rank #3 (Hold) or better have a 70% success rate in beating consensus estimates.
BJ’s currently boasts an Earnings ESP of +1.24%, signifying a recent surge in analyst optimism regarding the company’s earnings prospects. Coupled with the stock’s Zacks Rank #2 (Buy), this positive Earnings ESP signals a strong possibility of another earnings beat. BJ’s is scheduled to release its next earnings report on August 22, 2024.
While a negative Earnings ESP might reduce the predictive power of this metric, it doesn’t necessarily imply an earnings miss. Numerous companies have exceeded consensus EPS estimates, contributing to positive share price movements. Additionally, some stocks maintain stability even if they fall short of consensus estimates.
