Is It Time to Buy Whole Foods Stock?

Whole Foods' (NASDAQ: WFM  ) stock has taken a dip after the company reported quarterly earnings that disappointed some investors. Does that mean that we can finally pick up shares of this stellar business on the cheap?

In the video below, Fool contributor Demitrios Kalogeropoulos says no, arguing that Whole Foods is still too expensive for his tastes -- particularly when measured against another growing grocer, Kroger (NYSE: KR  ) . So, while he's a fan of Whole Foods' business, Demitrios says he'll be watching for a more attractive purchase price before jumping into shares.

Waiting can pay
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 


Read/Post Comments (2) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 13, 2013, at 10:22 AM, PRODOD wrote:

    I agree with your caution on WFM and would take it a degree further: IMO, WFM's growth will slow because they are already pushing their new stores into less viable MSA's. The company itself admits that their 'upscale' grocery model will only work in cities of 50,000 population or more yet project growth to about 1,000 stores by 2025: The problem is that there are only about 600 cities of that size in the US. So a large percentage of projected growth will come from adding stores to existing markets ... a tactic that recently failed for WFM in the Boston MSA. Add in the competition from KR (and others) and one is forced to consider the possibility that WFM has already 'picked the low hanging fruit' of their business model and that 'growth' may be tougher to come by....

  • Report this Comment On November 18, 2013, at 10:11 AM, TMFSigma wrote:

    Good points, @prodod.I do think Kroger is an often overlooked investment here. It's seeing steady sales growth on a huge base, and carries a decent dividend to boot. Looks like a bargain at just 14 times earnings, I'd say...especially when compared to WFM's 40+.

    Best,

    Demitrios

    TMFSigma

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2724595, ~/Articles/ArticleHandler.aspx, 8/23/2014 11:39:06 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement