BJ's Wholesale Club Holdings, Inc. (BJ)

BJ stock forecast: buy or sell

BJ stock outlook

  • After marking all-time highs on Thursday, BJ's Wholesale Club closed on Friday at $41.96 barely changing a 0.41%
  • BJ's Wholesale Club Holdings, Inc., together with its subsidiaries, operates warehouse clubs on the East Coast of the United States.
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Please read:
The viewpoints written in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this text does not have an understanding of the specific circumstances of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are published for educative reasons only

BJ stock chart overview

Should I buy BJ's Wholesale Club stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is BJ stock a buy?

In the current situation of BJ's Wholesale Club there is not any eligible buy setup. This doesn't mean we expect a selloff for BJ in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell BJ's Wholesale Club stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies allow us to avoid impulsive decisions based on our sentiments or the noise that surrounds the market. Our trading system selects very simple strategies to guide us on when is the best moment to sell a stock. Be aware that these strategies should not be used for shorting BJ stock

As a golden rule, you must never mantain a trading operation that produces losses greater than those expected by the time of the buy. When to sell shares must always be determined by the stop-loss (automatic or manual)

Is it time to sell BJ's Wholesale Club stock?

Currently, BJ's Wholesale Club stock doesn't match any of our preferred sell setups, so if you own BJ's Wholesale Club shares and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell BJ's Wholesale Club stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the previous 30 days we couldn't find any rating for BJ's Wholesale Club

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Technical analysis

Since last February, BJ's Wholesale Club has been drawing an uptrend that so far marked an amazing 122.72%. The chart shows higher highs and higher troughs, and along the way gave some buy points for those who wanted to trade in. Latest low was in mid-June, when price bounced at $32.84. In early July, BJ's Wholesale Club broke out above its last top ($38.35) giving a good buy point

BJ at Highs

On Thursday, BJ's Wholesale Club marked all-time highs (ATH) again at $43.10

SMAs overview

Moving averages are simple tools for traders to detect momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Technical analysts use supports and resistances as a way to spot price points on a chart that tend to act as obstacles, preventing the price of an asset to move in certain direction. A support level is a level where the price may find support as it falls. Price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down this level, it is likely to continue declining until meeting another support level. On the other hand, resistances are where the price tends to find resistance as it rises. Likewise, the price is more likely to "rebound" at this level, and if it finally crosses this level, it will rally easily until it approaches the next resistance

Price is at all-time highs and there are not upper resistances.

The current supports are:

  • S1: $38.35 (-8.6% below)
  • S2: $32.84 (-21.73% below)
  • S3: $31.19 (-25.67% below)
  • Bollinger bands

    This is an indicator that was created in the 1980s by John Bollinger. Essentially, the Bollinger Bands are lines that run around a centralmoving average, ranging the distance from the bottom to the top depending on market volatility. They are usually drawn by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price surpassed the upper band on Wednesday, the price corrected downwards by 1.39%. The price is moving very close to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a sell point, as price can move in these levels for many days and weeks

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that gauges price movements to detect when the share or financial asset is overbought or oversold. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 on July 23 after just crossing to the overbough zone for just one day (weak signal). The RSI value on Friday was 62.94. Since then, BJ's Wholesale Club shares inched a 1.25%

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    Earnings and financials

    First-quarter shareholders event was hosted by BJ last March after posting the earnings report. BJ presented Q1 earnings of $0.40 per share on revenue of $3.5 billion. The analysts estimate was $0.40 per share on revenue of $3.5 billion.

    This compares to earnings of $0.44 per share same quarter last year, so current EPS means a decrease of -9.09%. Looking at sales, figures just changed compared to $3.4B same quarter last year.

    BJ releases Q2 financial report on Thursday next week. Wall Street predicts earnings of %s per-share of $0.57, compared to previous quarter that made $0.40. Financial reporting day has a more than usual risk for stock investors as the results provided can soar and sink the stock price with exceptionally low liquidity and not respecting your buy or stop-loss orders. Check company's website to confirm time and details on the earnings call and the earnings report.

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