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BJ vs COST
Which Stock Would AI Choose? BJ's Wholesale Club (BJ) vs. Costco Wholesale Corporation (COST) Stock Comparison
Key Takeaways
- BJ's Wholesale Club reported stronger recent quarterly sales growth of 15.9% year-over-year compared to Costco's 9.9% August sales increase.
- Both stocks have experienced modest one-year declines of approximately 6-7%, reflecting broader retail sector pressures.
- BJ benefits from membership expansion to a record 8.5 million and raised full-year earnings guidance, while Costco maintains higher analyst price targets amid scale advantages.
- BJ trades at a lower price-to-earnings ratio near 20 versus Costco's approximately 45, highlighting valuation differences.
- Recent market activity shows both companies navigating consumer spending caution, with BJ demonstrating more pronounced earnings beats.
- Relative performance favors BJ in the near term due to operational momentum, though Costco's larger scale supports long-term stability.
Introduction
BJ's Wholesale Club (BJ) and Costco Wholesale Corporation (COST) represent two prominent players in the warehouse club retail sector, offering membership-based shopping models focused on value and bulk purchases. This comparison examines their recent stock behavior, operational results, and market positioning to assist investors and traders evaluating exposure within consumer staples. The analysis draws on verifiable developments from the past several weeks, providing context on relative performance and sentiment for those monitoring discount retail dynamics in the current environment.
BJ Overview and Recent Performance
BJ's Wholesale Club Holdings, Inc. operates membership warehouse clubs primarily in the eastern United States, emphasizing groceries, general merchandise, and gasoline. In recent market activity, the company delivered robust second-quarter fiscal 2026 results, with net sales rising 15.9% year-over-year to approximately $6.1 billion and adjusted earnings per share reaching $1.36, exceeding consensus estimates. Membership fee income grew 9.9% to a record level, supported by an increase to 8.5 million members. The firm raised its full-year adjusted earnings per share guidance to a range of $4.60 to $4.80 while maintaining comparable club sales expectations. These factors contributed to positive sentiment, though the stock has traded near $91-$92 amid a one-year decline of roughly 7%.
COST Overview and Recent Performance
Costco Wholesale Corporation runs a global network of membership warehouses offering a wide array of merchandise with an emphasis on high-volume, low-margin sales. Recent performance included August net sales of $23.70 billion, up 9.9% year-over-year, and full fiscal 2026 net sales reaching $297.3 billion, a 10.2% increase. Comparable sales trends remained resilient despite some cooling noted in prior periods. The stock has hovered near $905, reflecting a one-year decline of approximately 6%, with shares trading below moving averages in recent sessions. Analyst consensus maintains a moderate buy rating, supported by ongoing digital sales strength and membership renewal rates above 90% in key markets.
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Head-to-Head Comparison
BJ's Wholesale Club and Costco Wholesale Corporation both utilize membership-driven warehouse models within consumer staples, yet differ in scale and geographic focus. Costco operates a significantly larger global footprint with market capitalization exceeding $400 billion, providing substantial buying power and international diversification. BJ maintains a more concentrated U.S. eastern presence and smaller market capitalization near $11.6 billion, offering greater expansion potential in select regions. Recent momentum has tilted toward BJ following earnings outperformance and guidance increases, while Costco demonstrates steadier but moderating comparable sales growth. Valuation metrics show BJ at a lower price-to-earnings ratio around 20 compared to Costco near 45. Risk factors for both include sensitivity to consumer discretionary spending and gasoline price fluctuations, with BJ carrying higher relative debt levels. Market sentiment reflects institutional interest in both, though Costco benefits from broader analyst coverage and dividend yield.
Tickeron AI Verdict
Based on observable factors such as recent earnings consistency, membership growth trends, and relative valuation positioning, Tickeron’s AI models would currently assign a probabilistic edge to BJ over COST. Stronger quarterly sales acceleration and raised guidance provide clearer near-term catalysts, while lower multiples may support relative stability in volatile conditions. Costco’s scale and established market position continue to offer defensive qualities, suggesting balanced consideration depending on investor time horizon and risk parameters. This assessment relies on documented performance metrics rather than forward projections.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is BJ is a Hold and COST is a Hold.
| BJ | COST | BJ / COST | |
| Capitalization | 11.6B | 401B | 3% |
| EBITDA | 1.16B | 14.5B | 8% |
| Gain YTD | 1.622 | 5.383 | 30% |
| P/E Ratio | 20.02 | 45.51 | 44% |
| Revenue | 22.8B | 294B | 8% |
| Total Cash | 30M | 20B | 0% |
| Total Debt | 2.77B | 8.14B | 34% |
BJ | COST | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 19 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 92 Overvalued | 99 Overvalued | |
PROFIT vs RISK RATING 1..100 | 43 | 19 | |
SMR RATING 1..100 | 35 | 35 | |
PRICE GROWTH RATING 1..100 | 58 | 61 | |
P/E GROWTH RATING 1..100 | 55 | 62 | |
SEASONALITY SCORE 1..100 | 50 | 75 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
BJ's Valuation (92) in the Specialty Stores industry is in the same range as COST (99). This means that BJ’s stock grew similarly to COST’s over the last 12 months.
COST's Profit vs Risk Rating (19) in the Specialty Stores industry is in the same range as BJ (43). This means that COST’s stock grew similarly to BJ’s over the last 12 months.
COST's SMR Rating (35) in the Specialty Stores industry is in the same range as BJ (35). This means that COST’s stock grew similarly to BJ’s over the last 12 months.
BJ's Price Growth Rating (58) in the Specialty Stores industry is in the same range as COST (61). This means that BJ’s stock grew similarly to COST’s over the last 12 months.
BJ's P/E Growth Rating (55) in the Specialty Stores industry is in the same range as COST (62). This means that BJ’s stock grew similarly to COST’s over the last 12 months.
| BJ | COST | |
|---|---|---|
| RSI ODDS (%) | N/A | 4 days ago 81% |
| Stochastic ODDS (%) | 4 days ago 67% | 4 days ago 58% |
| Momentum ODDS (%) | 4 days ago 58% | 4 days ago 41% |
| MACD ODDS (%) | 5 days ago 60% | 4 days ago 50% |
| TrendWeek ODDS (%) | 4 days ago 54% | 4 days ago 44% |
| TrendMonth ODDS (%) | 4 days ago 54% | 4 days ago 42% |
| Advances ODDS (%) | 4 days ago 58% | 22 days ago 62% |
| Declines ODDS (%) | 6 days ago 49% | 5 days ago 38% |
| BollingerBands ODDS (%) | N/A | 4 days ago 54% |
| Aroon ODDS (%) | 4 days ago 45% | N/A |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
BJ’s FA Score shows that 0 FA rating(s) are green while COST’s FA Score has 1 green FA rating(s).
- BJ’s FA Score: 0 green, 5 red.
- COST’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
BJ’s TA Score shows that 3 TA indicator(s) are bullish while COST’s TA Score has 3 bullish TA indicator(s).
- BJ’s TA Score: 3 bullish, 5 bearish.
- COST’s TA Score: 3 bullish, 6 bearish.
Price Growth
BJ (@Discount Stores) experienced а -1.82% price change this week, while COST (@Discount Stores) price change was -1.20% for the same time period.
The average weekly price growth across all stocks in the @Discount Stores industry was -1.65%. For the same industry, the average monthly price growth was -1.10%, and the average quarterly price growth was +9.48%.
Reported Earning Dates
BJ is expected to report earnings on Nov 12, 2026.
COST is expected to report earnings on Sep 24, 2026.
Industries' Descriptions
@Discount Stores (-1.65% weekly)Companies in the discount stores industry specialize in offering substantial discounts on a vast array of retail products. Some companies in this industry also operate general merchandise warehouse clubs. Products sold at discount stores are typically similar to those of any department store, but the pricing of the goods is generally much lower (and hence the name “discount”). Think Dollar General Corporation, Dollar Tree, Inc. and Five Below, Inc. Many discount stores target low-income households and/or price-sensitive consumers as their potential market. Discount stores’ profitability could hinge on factors like competitive pricing, sufficient locations, healthy revenue per square foot, and effective advertisement. These store operators could have an edge over other retailers during financial crises or recessions, when many consumers could be looking for less expensive alternatives.
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BJ and
Correlation & Price change
A.I.dvisor indicates that over the last year, BJ has been loosely correlated with COST. These tickers have moved in lockstep 48% of the time. This A.I.-generated data suggests there is some statistical probability that if BJ jumps, then COST could also see price increases.