The shares of this gourmet grocer have had their ups and downs this year, with analysts decidedly mixed on their attraction. In the last few weeks, two analysts have changed their ratings on the company’s shares: Northcoast downgraded them to ‘Sell’, but Credit Suisse upgraded them to ‘Outperform’. Motley Fool just published a report from an analyst who said the stock was a great one to own for ‘the next two decades.’ And our contributor believes it continues to have great promise for investors.
Whole Foods Market, Inc. (WFM)
From The Wealth Advisory
Whole Foods Market, Inc. (WFM) operates natural and organic foods supermarkets. Its stores offer produce, packaged goods, bulk, frozen, dairy, meat, bakery, prepared foods, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, body care, pet foods, grocery, and household goods.
Most Recent Earnings Report: Quarter 1 2016 (next report 7/27 – 8/1/2016)
• EPS of $0.44 beats estimates by $0.03.
• Revenue of $3.7B misses estimates by $40M.
• Comparable store sales fell by 3%.
In addition to growing a great brand and establishing a company that’s become the model for its industry, management here has been growing revenues at a breakneck pace—they’re up over 50% in only the past five years.
And because of the efforts of a top-notch management team, that pace shows no signs of slowing. Behind any great company, you’ll find great management running streamlined operations and making strategic moves to ensure the company is always one step ahead of its competition. And that’s exactly what we’re seeing at WFM. As the millennial generation continues to amass more and more buying power, that growth will only accelerate for Whole Foods Markets.
Even after some serious weakness in April, shares have skyrocketed back up (over 12% in just the past four weeks). I hope everyone added to their positions during the dip. Whole Foods Market’s stock is still such a strong buy that I’m raising my limit to $40. Price target going up a little, too—now $57.50.
Briton Ryle, The Wealth Advisory, www.angelpub.com, 877-303- 4529, June 2016