Is Today Your Chance to Buy Whole Foods Market for Cheap?

Shares of organic food retailer Whole Foods Market  (NASDAQ: WFM  )  got pummeled today after missing analyst expectations on a number of metrics. Revenue came in light at $3.32 billion versus expectations of $3.34 billion, and EPS was $0.38 compared to expectations of $0.41. On top of all that, Whole Foods trimmed its full-year guidance.

That said, there were some highlights in the company's report. For instance, management provided investors with its strategic initiatives through 2018, which included improving operating margins and beginning to sell lower-priced items. Management also reported that Whole Foods has experienced six consecutive years of lowering store expenses.

So, is today a chance for investors to get in on Whole Foods for cheap? On today's Stock of the Day, Motley Fool analyst Simon Erickson says today was absolutely a gift for investors. With the company still making $1,000 per square foot, and continuously redefining what grocery stores look like, Whole Foods remains a great investment going forward. 

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  • Report this Comment On May 07, 2014, at 4:11 PM, leadmoto wrote:

    Ouch!.. that hurt. I've talked with a few of my California tree hugging, health food eating friends to get their thoughts on WFM. They all agree it is way to expensive to shop there. There are better alternatives in California. I know we are supposed to be foolish, but I got a bad feeling on this one.

  • Report this Comment On May 07, 2014, at 4:48 PM, Fooledagaintoo wrote:

    The Fool lost a lot of credibility when it put the CEO of WFM on their board, particularly given Mackey's previous problems of self promoting WFM stock while bashing a competitor under an alias name on a blog. This ended up getting him in trouble with the SEC. This coupled with the Strong Buy and "CORE Portfolio" status that Motley has rated this stock causes one to question the wisdom of the entire Motley investment team, particularly in light of the reality of this stock being down over 30% for the year and the company continuing to revise downward unrealistic earnings estimates. If one were not so connected to past predictions and influences from the board, I suspect the Fool would be stating. "We blew it, time to bail on this over-priced stock as the earnings growth potential simply is not what it used to be".

  • Report this Comment On May 07, 2014, at 5:09 PM, Rolsyl wrote:

    I have to agree with the above. I don't think the MF should be promoting this stock while the CFO is on the Board of directors. Is that conflict of interest? I've been watching my investment in WFM evaporate since I took a position in it last September. Maybe I'm a different kind of fool, but I don't see this as a bargain.

  • Report this Comment On May 08, 2014, at 2:19 AM, wisemann wrote:

    I live in the Northwest and WFM is one of the closest food stores near my home. We consider ourselves a comfortable 6 person family. However, I don’t shop at WFM at all. I usually go to FredMeyer or Trader Joe’s, which have much better services and prices. Each time I go to WFM I come up empty handed since their prices do not compare with equivalent items in other stores. For example, Coho wild salmon in whole foods is almost three times the price at Fredmeyer for the same quality. It seems to me WFM doesn’t cater to the middle class. It should expand its customer base and lower prices.

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