Consumer goods analyst Austin Smith believes Whole Foods Market is the best grocery stock out there. Third-quarter profits are up 32%, and shares are nearing 52-week highs, but shares do look expensive. Its growth is comparable to Starbucks, which trades at a much lower multiple. A few other headwinds for Whole Foods include notoriously slim margins in groceries, no international exposure, and plenty of other competitors.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.