- Catalyst Watch: Nvidia blockbuster, PMIs, GTA 6 watch, and the Apple Store turns 25
May 15, 2026
[Skyline of Lower Manhattan]
Art Wager
Welcome to Seeking Alpha's Catalyst Watch - a breakdown of some of next week's actionable events that stand out. Read more about the events that may impact stock prices next week.
MONDAY - MAY 18
* VOLATILITY WATCH - Intel (INTC [https://seekingalpha.com/symbol/INTC]) and Ondas (ONDS [https://seekingalpha.com/symbol/ONDS]) are set up for another volatile week of trading based on options volatility. The most overbought stocks per their 14-day relative strength index include Robo.ai (AIIO [https://seekingalpha.com/symbol/AIIO]), Bandwidth (BAND [https://seekingalpha.com/symbol/BAND]), and Vishay Precision (VPG [https://seekingalpha.com/symbol/VPG]). The most oversold stocks per their 14-day Relative Strength Index include SunCar (SDA [https://seekingalpha.com/symbol/SDA]), EPAM Systems (EPAM [https://seekingalpha.com/symbol/EPAM]), and Zoetis (ZTS [https://seekingalpha.com/symbol/ZTS]). Short interest is elevated on PureCycle Technologies (PCT [https://seekingalpha.com/symbol/PCT]) and Sunrun (RUN [https://seekingalpha.com/symbol/RUN]) again.
* EARNINGS WATCH - Notable companies due to report include Baidu (BIDU [https://seekingalpha.com/symbol/BIDU]).
* DIVIDEND WATCH - Companies that have an ex-dividend date coming next week include Carnival Corporation (CCL [https://seekingalpha.com/symbol/CCL]), Chevron (CVX [https://seekingalpha.com/symbol/CVX]), Alcoa (AA [https://seekingalpha.com/symbol/AA]), and Valero Energy (VLO [https://seekingalpha.com/symbol/VLO]).
* INDE UPDATES - Lumentum Holdings (LITE [https://seekingalpha.com/symbol/LITE]) will be officially added to the Nasdaq 100 Index. SharkNinja (SN [https://seekingalpha.com/symbol/SN]) will jump to the S&P MidCap 400 Index, replacing Flowers Foods (FLO [https://seekingalpha.com/symbol/FLO]), which is simultaneously moving into the S&P SmallCap 600.
* IPO WATCH - Investment bank Lincoln International (LCLN [https://seekingalpha.com/symbol/LCLN]) is expected to price its IPO during the week and begin to trade. The quiet periods expire for Yesway (YSWY [https://seekingalpha.com/symbol/YSWY]), X-Energy (XE [https://seekingalpha.com/symbol/XE]), Elmet Group (ELMT [https://seekingalpha.com/symbol/ELMT]), and National Healthcare Properties (NHP [https://seekingalpha.com/symbol/NHP]) to free up analysts to post ratings. SpaceX's (SPACE [https://seekingalpha.com/symbol/SPACE]) IPO prospectus could be released during the week.
* ALL WEEK - Dell Technologies World 2026 will begin in Las Vegas, Nevada. The conference will feature keynote addresses from Dell (DELL [https://seekingalpha.com/symbol/DELL]) management and will also include a presentation from NVIDIA (NVDA [https://seekingalpha.com/symbol/NVDA]) CEO Jensen Huang.
* ALL DAY - The two-day GamesBeat Summit will feature updates from entertainment and technology executives.
* ALL DAY - The three-day J.P. Morgan Global Technology, Media, and Communications Conference will begin. IBM (IBM [https://seekingalpha.com/symbol/IBM]), CoreWeave (CRWV [https://seekingalpha.com/symbol/CRWV]) and Mastercard (MA [https://seekingalpha.com/symbol/MA]) are among the notable companies presenting.
TUESDAY - MAY 19
* EARNINGS WATCH - Notable investor events include Home Depot (HD [https://seekingalpha.com/symbol/HD]), Toll Brothers (TOL [https://seekingalpha.com/symbol/TOL]), CAVA Group (CAVA [https://seekingalpha.com/symbol/CAVA]), and Amer Sports (AS [https://seekingalpha.com/symbol/AS]). Options trading implies double-digit swings for Hesai (HSAI [https://seekingalpha.com/symbol/HSAI]) and Canaan (CAN [https://seekingalpha.com/symbol/CAN]) after their reports are released.
* INDEX UPDATES - F&G Annuities & Life (FG [https://seekingalpha.com/symbol/FG]) will be added to the S&P SmallCap 600 to replace Mister Car Wash (MCW [https://seekingalpha.com/symbol/MCW]).
* ALL DAY - It is the 25th anniversary of the opening of the first Apple (AAPL [https://seekingalpha.com/symbol/AAPL]) store.
* ALL DAY - Vertiv (VRT [https://seekingalpha.com/symbol/VRT]) will hold a two-day investor conference to provide updates on the company's strategic initiatives, latest innovations, financial outlook, and overall market trends.
* ALL DAY - Shareholders of Two Harbors Investment (TWO [https://seekingalpha.com/symbol/TWO]) are scheduled to meet to vote on the highly contested merger agreement with CrossCountry Mortgage.
* ALL DAY - Alphabet (GOOG [https://seekingalpha.com/symbol/GOOG]) (GOOGL [https://seekingalpha.com/symbol/GOOGL]) will hold its annual Google I/O developer conference in Mountain View, California. The conference will showcase Google's latest AI breakthroughs and product updates across the company, including Gemini, Android, and other technologies, with keynote addresses from Google leaders.
* 1:00 P.M. Expedia Group (EXPE [https://seekingalpha.com/symbol/EXPE]) will webcast the general opening session of Explore 26, which is its annual partner event where the company will share innovations focused on improving the complete travel experience.
WEDNESDAY - MAY 20
* EARNINGS WATCH - Notable companies due to report include Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]), Analog Devices (ADI [https://seekingalpha.com/symbol/ADI]), TJX Companies (TJX [https://seekingalpha.com/symbol/TJX]), Lowe's (LOW [https://seekingalpha.com/symbol/LOW]), and Target (TGT [https://seekingalpha.com/symbol/TGT]). Options trading implies double-digit swings for e.l.f. Beauty (ELF [https://seekingalpha.com/symbol/ELF]) and Aevex (AVEX [https://seekingalpha.com/symbol/AVEX]) after their reports are released.
* ALL DAY - Notable events include the Sohn Hong Kong Investment Leaders Conference in Hong Kong, Citigroup's (C [https://seekingalpha.com/symbol/C]) annual meeting, Amazon's (AMZN [https://seekingalpha.com/symbol/AMZN]) annual meeting, and the B. Riley Securities Investor Conference.
* ALL DAY - IEA will publish its Global EV Outlook report.
* ALL DAY - Circana will release U.S. video game sales results for the period covering April 5 to May 2.
* 2:00 P.M. The Federal Reserve will release the minutes from its last meeting.
* 5:00 P.M. Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) will hold its earnings conference call. Analysts expect the focus on the call will be data center performance, hyperscaler and sovereign AI capex visibility, and management’s commentary on AI compute demand. Options trading implies a 6% share price move for Nvidia after the report drops. Stocks that have been jolted in the past during Nvidia's update include AMD (AMD [https://seekingalpha.com/symbol/AMD]), Intel (INTC [https://seekingalpha.com/symbol/INTC]), Super Micro Computer (SMCI [https://seekingalpha.com/symbol/SMCI]), and Broadcom (AVGO [https://seekingalpha.com/symbol/AVGO]). Major Nvidia suppliers Fabrinet (FN [https://seekingalpha.com/symbol/FN]) and Astera Labs (ALAB [https://seekingalpha.com/symbol/ALAB]) will also be on watch.
THURSDAY - MAY 21
* EARNINGS WATCH - Notable companies due to report include Walmart (WMT [https://seekingalpha.com/symbol/WMT]), Deere (DE [https://seekingalpha.com/symbol/DE]), Ross Stores (ROST [https://seekingalpha.com/symbol/ROST]), Take-Two Interactive (TTWO [https://seekingalpha.com/symbol/TTWO]), NIO (NIO [https://seekingalpha.com/symbol/NIO]), Workday (WDAY [https://seekingalpha.com/symbol/WDAY]), and Ralph Lauren (RL [https://seekingalpha.com/symbol/RL]). Options trading implies a double-digit swing for Lionsgate (LION [https://seekingalpha.com/symbol/LION]) and Advance Auto Parts (AAP [https://seekingalpha.com/symbol/AAP]) after they report.
* ALL DAY - Flash PMIs for economies around the world will give investors a chance to assess the economic impact of the Middle East conflict.
* ALL DAY - Notable events include Stellantis' (STLA [https://seekingalpha.com/symbol/STLA]) Investor Day, Amkor's (AMKR [https://seekingalpha.com/symbol/AMKR]) Investor Day, Cummins' (CMI [https://seekingalpha.com/symbol/CMI]) Analyst Day, Badger Meter's (BMI [https://seekingalpha.com/symbol/BMI]) Investor Day, and Tenable's (TENB [https://seekingalpha.com/symbol/TENB]) Investor Day.
* 8:30 A.M. The Philadelphia Fed Index report will be released. Economists will be watching to see if the index stays in expansionary territory.
* 4:30 P.M. Take-Two Interactive (TTWO [https://seekingalpha.com/symbol/TTWO]) will hold its earnings call. The stock could be volatile amid growing speculation that the company will release a new trailer for Grand Theft Auto 6 during the week and allow retailers to start taking pre-orders. Options trading implies a post-earnings move of more than 9%.
FRIDAY - MAY 22
* EARNINGS WATCH - Notable companies due to report include BJ's Wholesale (BJ [https://seekingalpha.com/symbol/BJ]).
* ALL DAY - FTSE Russell will publish the preliminary lists of companies that are slated to be added to or removed from the Russell indexes, based on their market capitalizations and other eligibility criteria. Stocks slated for addition often see increased demand, while those facing deletion may experience selling pressure.
_Seeking Alpha Editor Josh Fineman contributed to this article._
MORE ON THE MARKETS
* Summer Stock Plunge? I'm 99% Convinced A Major Recession Is Coming, Let Me Convince You [https://seekingalpha.com/article/4905216-summer-stock-plunge-im-99-percent-convinced-a-major-recession-is-coming-let-me-convince-you]
* The Hindenburg Omen Flashes A Warning Sign [https://seekingalpha.com/article/4905184-hindenburg-omen-flashes-warning-sign]
* How To Build A $6,300/Mo Income Using Nuveens's 7.61% Yielding 37 CEFs [https://seekingalpha.com/article/4905136-how-to-build-a-6300mo-income-using-nuveenss-7-61-percent-yielding-37-cefs]
* SOX rally rivals Mississippi, dot-com manias as BofA warns on June [https://seekingalpha.com/news/4593855-sox-rally-rivals-mississippi-dot-com-manias-as-bofa-warns-on-june]
* Wall Street rally masks rising number of oversold S&P 500 stocks [https://seekingalpha.com/news/4593819-wall-street-rally-masks-rising-number-of-oversold-s-and-p-500-stocks]
- Grocery Outlet Holding Corp. (GO) Q1 Earnings and Revenues Surpass Estimates
May 13, 2026
Grocery Outlet Holding Corp. (GO) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +122.22%. A quarter ago, it was expected that this supermarket company selling discount, overstocked and closeout products would post earnings of $0.21 per share when it actually produced earnings of $0.19, delivering a surprise of -9.52%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Grocery Outlet, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $1.17 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.15%. This compares to year-ago revenues of $1.13 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Grocery Outlet shares have lost about 21.2% since the beginning of the year versus the S&P 500's gain of 8.1%.
What's Next for Grocery Outlet?
While Grocery Outlet has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Grocery Outlet was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Story Continues
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.15 on $1.18 billion in revenues for the coming quarter and $0.51 on $4.66 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, BJ's Wholesale Club (BJ), has yet to report results for the quarter ended April 2026. The results are expected to be released on May 22.
This wholesale membership warehouse operator is expected to post quarterly earnings of $1.05 per share in its upcoming report, which represents a year-over-year change of -7.9%. The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level.
BJ's Wholesale Club's revenues are expected to be $5.39 billion, up 4.6% from the year-ago quarter.
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This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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- 1 Cash-Producing Stock Worth Investigating and 2 Facing Challenges
May 12, 2026
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Luckily for you, we built StockStory to help you separate the good from the bad. Keeping that in mind, here is one cash-producing company that reinvests wisely to drive long-term success and two that may face some trouble.
Two Stocks to Sell:
BJ's (BJ)
Trailing 12-Month Free Cash Flow Margin: 1.5%
Appealing to the budget-conscious individual shopping for a household, BJ’s Wholesale Club (NYSE:BJ) is a membership-only retail chain that sells groceries, appliances, electronics, and household items, often in bulk quantities.
Why Does BJ Give Us Pause?
Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand Gross margin of 18.5% is below its competitors, leaving less money for marketing and promotions Subpar operating margin of 3.8% constrains its ability to invest in process improvements or effectively respond to new competitive threats
At $95.46 per share, BJ's trades at 20.5x forward P/E. Dive into our free research report to see why there are better opportunities than BJ.
Centene (CNC)
Trailing 12-Month Free Cash Flow Margin: 3.6%
Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE:CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.
Why Does CNC Worry Us?
Customer additions have disappointed over the past two years, indicating the company’s value proposition may not be resonating Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 15.2% annually Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Centene is trading at $54.86 per share, or 15.3x forward P/E. Read our free research report to see why you should think twice about including CNC in your portfolio, it’s free.
One Stock to Watch:
Cadence Design Systems (CDNS)
Trailing 12-Month Free Cash Flow Margin: 25.9%
Powering the chips behind everything from smartphones to AI accelerators for over 35 years, Cadence Design Systems (NASDAQ:CDNS) provides essential computational software, hardware, and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors.
Story Continues
Why Does CDNS Catch Our Eye?
Superior software functionality and low servicing costs are reflected in its best-in-class gross margin of 87.1% User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs CDNS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Cadence Design Systems’s stock price of $353 implies a valuation ratio of 15.3x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
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- Procter & Gamble Drops 9% in 3 Months: Buy the Dip or Sell the Stock?
May 11, 2026
The Procter & Gamble Company PG has witnessed a decline over the past three months, with its shares falling 9.2%. The stock underperformed the S&P 500 index, which gained 9.4% during the same period, but performed better than the Consumer Staples sector, which declined 11.6%. Meanwhile, the broader Consumer Products – Staples industry fell 6.7%.
Procter & Gamble’s recent stock weakness reflects investor concerns over moderating sales growth, persistent cost pressures and a cautious near-term earnings outlook. Although the company delivered better-than-expected third-quarter fiscal 2026 earnings, revenue growth remained modest, and management indicated that full-year earnings are likely to land toward the lower end of its guidance range.
PG's 3-Month Price PerformanceZacks Investment Research
Image Source: Zacks Investment Research
PG’s performance is notably weaker than that of its competitors, BJ's Wholesale Club BJ, Colgate-Palmolive Company CL and Church & Dwight Co., Inc. CHD, which declined 7.5%, 8.9% and 6.5%, respectively, in the past three months.Zacks Investment Research
Image Source: Zacks Investment Research
Closing at $146.42, PG stock stands almost 14.4% below its 52-week high of $170.99 attained on May 30, 2026. The company is trading below its 50 and 200-day simple moving averages of $146.8 and $148.4, respectively, signaling bearish sentiment in maintaining the recent performance levels.
PG Trades Below 50 & 200-Day Moving AveragesZacks Investment Research
Image Source: Zacks Investment Research
What’s Behind PG’s Dismal Stock Run?
PG has faced a dismal stock run due to a combination of macroeconomic pressures, rising costs and investor concerns about future profitability. Although the company delivered solid third-quarter fiscal 2026 results with organic sales growth above 3% and broad-based category expansion, investors remain worried about mounting inflationary pressures and geopolitical disruptions. The conflict in the Middle East has sharply increased commodity-linked input costs, logistics expenses and supply chain disruptions, creating an estimated $1 billion after-tax headwind for the 2026.
Another major factor behind the weak stock performance is uncertainty regarding earnings growth and margins. Management acknowledged that while innovation-led growth remains strong, the company may not fully offset inflation through productivity improvements alone. PG expects earnings to land near the lower end of its guidance range of $6.83-$7.09 for fiscal 2026 as rising oil prices, transportation expenses and sourcing inefficiencies pressure margins. Investors are also cautious because the company continues to increase investments in marketing, innovation and consumer promotions despite the challenging cost environment, which could weigh on short-term profitability.
Consumer spending trends have also contributed to investor pessimism. Persistent inflation across food, healthcare and energy has weakened consumer purchasing power globally, especially in value-sensitive categories. Although PG emphasized that innovation and premium products like SK-II and Tide are driving growth, there are concerns that consumers may increasingly trade down to cheaper alternatives if inflation remains elevated. Competitive intensity in retail channels and the gradual return of promotional activity to pre-COVID levels have further added pressure on the company’s pricing power and market share outlook.
Finally, the market remains uncertain about PG’s ability to sustain long-term growth amid restructuring efforts and global volatility. Management itself admitted that fiscal 2027 visibility remains limited due to unpredictable macroeconomic conditions and geopolitical risks. As a result, despite strong brands and stable demand fundamentals, concerns over inflation, margins and execution risks have weighed heavily on PG’s recent stock performance.
Story Continues
PG Not Devoid of Tailwinds
Despite near-term pressures, PG is not devoid of tailwinds, as the company continues to demonstrate strong brand resilience and broad-based organic growth. In the latest quarter, all 10 product categories posted organic sales growth, while regions such as North America, Latin America and Greater China delivered solid performances. Premium brands like SK-II, Tide and Pampers continue to gain traction due to superior product innovation and strong consumer loyalty. Management also highlighted improving market share trends across several key categories, indicating that the company’s innovation-led strategy is beginning to gain momentum.
Another important tailwind is PG’s aggressive focus on productivity, automation and supply-chain modernization. The company’s “Supply Chain 3.0” initiative, which includes automation, AI-enabled analytics, digital manufacturing and warehouse operations, is helping improve operational efficiency and supply resilience. Management noted that these initiatives are enabling faster reformulation, diversified sourcing and improved inventory management during periods of geopolitical disruption. Over time, these technology-driven efficiencies could help offset inflationary pressures and support margin recovery.
PG’s Estimate Revision Trend
The Zacks Consensus Estimate for PG’s fiscal 2026 and 2027 earnings per share has inched down 6 cents and 19 cents to $6.91 and $7.09, respectively, over the past 30 days.Zacks Investment Research
Image Source: Zacks Investment Research
PG’s Premium Valuation
Despite the considerable decline in its share price, Procter & Gamble still trades at a significant premium to industry peers with a forward 12-month price-to-earnings (P/E) multiple of 20.73X. The current valuation is below its five-year high of 26.67X but ahead of the broader industry’s multiple of 17.87X.
At a forward 12-month P/E of 20.73X, Procter & Gamble is trading at a higher valuation than BJ's Wholesale Club, which has a multiple of 20.12X. However, PG is trading below peers such as Colgate-Palmolive and Church & Dwight, which have forward 12-month P/E ratios of 22.40X and 24.27X, respectively.Zacks Investment Research
Image Source: Zacks Investment Research
How to Play PG Stock Now?
PG is facing mounting near-term pressures from rising commodity and logistics costs, geopolitical uncertainty, slowing consumer demand and persistent margin headwinds. Earnings estimate cuts and management’s cautious outlook have also weakened investor confidence, while the stock still trades at a premium valuation compared with the broader industry. Although PG continues to benefit from strong brands, innovation and productivity initiatives, these positives may take time to materially improve financial performance. Given the uncertain earnings outlook and limited upside potential in the near term, this Zacks Rank #4 (Sell) stock appears less favorable at current levels.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
Colgate-Palmolive Company (CL) : Free Stock Analysis Report
BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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- Why Costco's E-commerce Gains Could Drive Higher Valuation
May 11, 2026
Costco Wholesale Corporation’s COST rapidly expanding e-commerce business is increasingly becoming a factor that could support a richer market valuation for the retailer. While the company has long been associated with warehouse traffic and membership loyalty, the latest sales update suggests its digital business is now contributing to growth in a more material way.
Digitally enabled comparable sales increased 18.8% in April and climbed 21.6% for the first 35 weeks ended May 3, 2026. Even after adjusting for gasoline prices and foreign exchange, digitally enabled comparable sales still rose 18.4% in April and 21.1% for the first 35 weeks. Those figures significantly outpaced the company’s overall comparable sales growth of 11.6%, indicating that Costco’s online ecosystem is scaling faster than its core warehouse business.
Strong digital momentum suggests that Costco is expanding customer engagement beyond in-store bulk shopping while reinforcing convenience for existing members. The company’s e-commerce presence now spans several international markets, including the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia.
In an environment marked by inflationary pressures and uncertain consumer spending patterns, Costco’s digital growth may be strengthening investor confidence that the retailer can sustain revenue growth across multiple shopping channels. The acceleration of these digital channels serves as a powerful catalyst for a higher valuation because it diversifies revenue streams and captures a broader share of member spending.
What the Latest Metrics Say About Costco's Valuation
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 46.37, higher than the industry’s ratio of 32.36 but below its median P/E level of 46.88, observed over the past year. Although the premium multiple may appear elevated, investors often view Costco as a high-quality retail operator supported by resilient comparable sales growth, strong membership retention and expanding digital capabilities.
As long as Costco continues to deliver consistent sales growth and strengthen its omnichannel presence, its premium valuation could remain supported by investors seeking stable growth within the retail sector. Zacks Investment Research
Image Source: Zacks Investment Research
Shares of Costco have fallen 0.8% over the past year against the Retail – Discount Stores industry’s 9.6% rise. Zacks Investment Research
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 8.9% and 13%, respectively. For the next fiscal year, the consensus estimate indicates a 7.6% rise in sales and 10.2% growth in earnings.
Story Continues
Zacks Investment Research
Image Source: Zacks Investment Research
Costco’s Peer Performance: Walmart & BJ’s Wholesale
Walmart Inc. WMT continues to scale its digital ecosystem aggressively, with e-commerce sales rising 24% globally and contributing 23% of total sales during the fourth quarter of fiscal 2026. Walmart is leveraging store-fulfilled delivery, AI-driven tools and marketplace expansion to enhance convenience and drive higher basket sizes. Walmart’s comparable sales growth of 4.6% in the U.S. division reflects increased customer transactions supported by digital adoption.
BJ's Wholesale Club Holdings, Inc. BJ is also seeing robust digital traction, with digitally enabled comparable sales growing 31% during the fourth quarter of fiscal 2025. BJ’s Wholesale benefits from a club-based fulfillment model, with more than 90% of digital orders fulfilled in-club, supporting efficiency. BJ’s Wholesale continues to pair digital growth with membership expansion and traffic gains, reinforcing its omnichannel value proposition.
While Costco and BJ's Wholesale Club each carry a Zacks Rank #3 (Hold), Walmart holds a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Walmart Inc. (WMT) : Free Stock Analysis Report
BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- BJ’s Wholesale Club Continues Texas Launch with Grand Prairie Opening
May 11, 2026
Grand opening set for May 15
MARLBOROUGH, Mass. & GRAND PRAIRIE, Texas, May 11, 2026--(BUSINESS WIRE)--BJ’s Wholesale Club (NYSE: BJ) announced today that its club in Grand Prairie, Texas, will open on May 15.
In celebration of the new club at 1021 IKEA Way, BJ’s Gas in Grand Prairie will offer members $2 per gallon on gas for one day only on Wednesday, May 13, from 6:30 a.m. to 10:00 p.m. The promotional price applies to regular gas and has a 30-gallon limit.
Local shoppers can sign up now to become members at BJs.com/GrandPrairie. Limited-time membership offers start at just $20 for one year* and include 10¢ off per gallon at BJ’s Gas for the first six months. Members can combine the 10¢-off-per-gallon offer with the one-day $2 gas promotion on May 13 for even deeper savings.
BJ’s offers unbeatable value on everyday essentials in a convenient one-stop shop. Members save on fresh foods, produce, full-service deli items, fresh bakery goods, household essentials, home décor, pet supplies, toys, consumer electronics and more. BJ’s members love the true treasure-hunt shopping experience, discovering new and exciting items with each visit.
"BJ’s Wholesale Club is driven by a powerful purpose: we take care of the families who depend on us," said Brent Jacobs, Club Manager, Grand Prairie BJ’s Wholesale Club. "We’re looking forward to serving the community and the families of Grand Prairie."
BJ’s has a long-standing commitment to nourishing its communities. For over 15 years, it has worked with Feeding America and its network of food banks, providing more than 165 million meals for those in need. In Grand Prairie, BJ’s is partnering with North Texas Food Bank to help local agency partners Grand Prairie United Charities and The Flanagan Foundation increase their food distribution capacity to serve more families.
BJ’s members can choose from several time-saving options, whether shopping online or in-club. Curbside pickup, in-club pickup, same-day delivery** and shipping are available on BJs.com. Members shopping in-club can use ExpressPay*** through the BJ’s mobile app to scan products as they shop and skip the checkout line.
Additional member perks include:
Unbeatable grocery prices: Members can save up to 25% off grocery store prices every day A risk-free membership: Shoppers can try BJ’s risk-free with the company’s 100% money-back guarantee BJ’s coupons + manufacturers’ coupons: Members can combine BJ’s coupons with many manufacturers’ coupons to maximize savings BJ’s Gas: Members can fill up at any BJ’s Gas station at low prices. Plus, members can save even more through BJ’s Fuel Savers Program
Story Continues
Learn more at BJs.com/GrandPrairie.
About BJ's Wholesale Club Holdings, Inc. BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) is a leading operator of membership warehouse clubs focused on delivering significant value to its members and serving a shared purpose: "We take care of the families who depend on us." The company provides a wide assortment of fresh foods, produce, a full-service deli, fresh bakery, household essentials, various exclusive offerings, gas and more to deliver unbeatable value to smart-saving families. Headquartered in Marlborough, Massachusetts, the company pioneered the warehouse club model in New England in 1984 and currently operates 266 clubs and 205 BJ's Gas® locations in 22 states. For more information, please visit us at BJs.com or on Facebook, or Instagram.
All BJ’s memberships are subject to BJ’s current membership terms; ask in-club or visit BJs.com/terms.
*Requires BJ’s Easy Renewal®
**Not available in all ZIP codes. Log in to your account to confirm availability.
***Terms apply. Visit bjs.com/expresspay for more details.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260511524964/en/
Contacts
Media:
Kirk Saville
Head of Corporate Communications
BJ’s Wholesale Club
ksaville@bjs.com
774-512-5597
Ryan Carney
External Communications Manager
BJ’s Wholesale Club
rcarney@bjs.com
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- BJ's Wholesale Club Continues Texas Launch with Grand Prairie Opening
May 11, 2026 · businesswire.com
MARLBOROUGH, Mass. & GRAND PRAIRIE, Texas--(BUSINESS WIRE)--BJ's Wholesale Club (NYSE: BJ) announced today that its club in Grand Prairie, Texas, will open on May 15. In celebration of the new club at 1021 IKEA Way, BJ's Gas in Grand Prairie will offer members $2 per gallon on gas for one day only on Wednesday, May 13, from 6:30 a.m. to 10:00 p.m. The promotional price applies to regular gas and has a 30-gallon limit. Local shoppers can sign up now to become members at BJs.com/GrandPrairie. Lim.
- BJ'S WHOLESALE CLUB CONTINUES TEXAS LAUNCH WITH GRAND PRAIRIE OPENING
May 11, 2026
MARLBOROUGH, MASS. & GRAND PRAIRIE, TEXAS--(BUSINESS WIRE)--BJ'S WHOLESALE CLUB (NYSE: BJ) ANNOUNCED TODAY THAT ITS CLUB IN GRAND PRAIRIE, TEXAS, WILL OPEN ON MAY 15. IN CELEBRATION OF THE NEW CLUB AT 1021 IKEA WAY, BJ'S GAS IN GRAND PRAIRIE WILL OFFER MEMBERS $2 PER GALLON ON GAS FOR ONE DAY ONLY ON WEDNESDAY, MAY 13, FROM 6:30 A.M. TO 10:00 P.M. THE PROMOTIONAL PRICE APPLIES TO REGULAR GAS AND HAS A 30-GALLON LIMIT. LOCAL SHOPPERS CAN SIGN UP NOW TO BECOME MEMBERS AT BJS.COM/GRANDPRAIRIE. LIM.
- A Look At BJ's Wholesale Club Holdings (BJ) Valuation As Signals On Upside Potential Appear Mixed
May 10, 2026
Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide.
What BJ's Wholesale Club Holdings Stock Performance Tells You Now
BJ's Wholesale Club Holdings (BJ) has drawn fresh attention after recent trading left the stock showing mixed returns, including a modest gain over the past month but a double digit decline over the past year.
See our latest analysis for BJ's Wholesale Club Holdings.
At a share price of $94.33, BJ's Wholesale Club Holdings has seen short term share price momentum cool, with a 6.05% 90 day share price decline alongside a 5 year total shareholder return of 105.11%. This points to a stock where earlier enthusiasm has eased as investors reassess growth prospects and risk.
If you are comparing BJ's with other opportunities in retail, warehouse clubs, or adjacent sectors, it can help to widen the search and see how other companies stack up on quality, growth, and balance sheet strength using a focused screener like 18 top founder-led companies
So with BJ's Wholesale Club Holdings trading at $94.33, sitting at a 23.39% intrinsic discount and about 10.89% below the average analyst target, is this a genuine opportunity or is the market already pricing in future growth?
Most Popular Narrative: 9.8% Undervalued
With BJ's Wholesale Club Holdings last closing at $94.33 against a narrative fair value of $104.60, the current setup reflects a modest valuation gap that rests on specific assumptions about future growth and profitability.
Analysts expect earnings to reach $665.0 million (and earnings per share of $5.3) by about May 2029, compared to $578.4 million today. The analysts are largely in agreement about this estimate.
Read the complete narrative.
Want to see what sits behind that earnings curve and fair value? The narrative describes measured revenue growth, stable margins, and a richer future earnings multiple. The exact mix of those inputs is where things get interesting.
Result: Fair Value of $104.60 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, there is still a risk that ongoing underperformance in general merchandise and rising SG&A pressure from new club openings could limit margins and investor enthusiasm.
Find out about the key risks to this BJ's Wholesale Club Holdings narrative.
Another Way To Look At BJ's Valuation
The fair value narrative points to BJ's Wholesale Club Holdings being 23.4% below an intrinsic value estimate. However, the current P/E of 21.1x is higher than the US Consumer Retailing industry at 17.9x, the peer average at 19.7x, and even its own fair ratio of 20.5x. That kind of premium can limit upside if expectations cool, so which signal do you put more weight on?
Story Continues
See what the numbers say about this price — find out in our valuation breakdown.NYSE:BJ P/E Ratio as at May 2026
Next Steps
Mixed signals on value and expectations can be hard to read, so it is worth checking the full picture for yourself, including 3 key rewards and 1 important warning sign.
Looking for more investment ideas?
If BJ's has sharpened your focus on fundamentals, do not stop here. Broaden your watchlist now so you are not playing catch up later.
Target reliable compounding potential by checking companies screened for resilient payouts through 12 dividend fortresses. Upgrade your watchlist with companies that combine quality, financial strength, and attractive pricing using the 51 high quality undervalued stocks. Reduce unpleasant surprises by focusing on companies flagged for balance sheet resilience and solid fundamentals in the solid balance sheet and fundamentals stocks screener (44 results).
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include BJ.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- ARKO Corp. (ARKO) Reports Q1 Loss, Beats Revenue Estimates
May 7, 2026
ARKO Corp. (ARKO) came out with a quarterly loss of $0.07 per share versus the Zacks Consensus Estimate of a loss of $0.16. This compares to a loss of $0.12 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +56.25%. A quarter ago, it was expected that this company would post a loss of $0.01 per share when it actually produced break-even earnings, delivering a surprise of +100%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
ARKO, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $1.77 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 7.27%. This compares to year-ago revenues of $1.83 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
ARKO shares have added about 43.6% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for ARKO?
While ARKO has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for ARKO was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.15 on $1.86 billion in revenues for the coming quarter and $0.26 on $7.27 billion in revenues for the current fiscal year.
Story Continues
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
BJ's Wholesale Club (BJ), another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on May 21.
This wholesale membership warehouse operator is expected to post quarterly earnings of $1.05 per share in its upcoming report, which represents a year-over-year change of -7.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
BJ's Wholesale Club's revenues are expected to be $5.39 billion, up 4.6% from the year-ago quarter.
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This article originally published on Zacks Investment Research (zacks.com).
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