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Why Whole Foods Is Poised to Bounce Back

By Brian Pacampara – Mar 19, 2014 at 11:59AM

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Market-trouncing returns could be written in these stars.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural and organic food retailer Whole Foods Market (WFM) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Whole Foods and see what CAPS investors are saying about the stock right now.

Whole Foods facts

Headquarters (Founded)

Austin, Texas (1978)

Market Cap

$16.3 billion

Industry

Food retail

Trailing-12-Month Revenue

$12.2 billion

Management

Co-founder/Co-CEO John Mackey
Co-CEO Walter Robb

Return on Equity (Average, Past 3 Years)

13.3%

Cash/Debt

$926.0 million / $25.0 million

Dividend Yield

0.9%

Competitors

Kroger (NYSE: KR)
Safeway
(NYSE: SWY)
Trader Joe's

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 89% of the 5,211 members who have rated Whole Foods believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, TMFCQuader, tapped Whole Foods as a particularly tasty bargain opportunity:

"Right now it is hitting some turbulence, but as people start realizing that many of their health issues are related to the foods they eat, they may start coming to Whole Foods. Whole Foods also positions its stores in urban areas, usually within walking distance of many patrons."

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Whole Foods Market. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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