"When Wall Street hasn't caught up to a growing company - I see a buy opportunity." Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance Twelve quarters in a row. That's how long this Walmart and Costco competitor has been taking market share from its rivals. Yet Wall Street is still treating it like it's about to stumble. I'm referring to BJ's Wholesale (BJ), and it's one of the most undervalued companies in the markets right now. Aside from its 12 strong quarters, the retailer has built a loyal fanbase. It currently boasts more than 8 million members. The numbers also back up this momentum… Over the last three years, the stock has gained 33.2%. Stretch it to five years, and you're looking at a 131.6% return... driven primarily by membership growth. Plus, it's expanding, with its biggest growth plan in history. Management is targeting 15% unit growth, adding new clubs across the Southeast and Midwest - markets where the warehouse club model still has significant white space. Yet despite the company's growth, the market hasn't caught up. Looking at a discounted cash flow model, the estimated intrinsic value of the stock is $119.17. But it's been trading at a discount to its projected fair value... today the stock is priced around $100. BJ's Wholesale has been trading in a tight consolidation pattern since late August. The current price is a bargain. If BJ's membership growth and expansion plan help push the stock through resistance, that could signal the start of a breakout. |
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