4-Star Stocks Poised to Pop: The Fresh Market

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, perishable-food retailer The Fresh Market (NAS: TFM) has earned a respected four-star ranking.

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

Fresh Market facts

Headquarters (Founded)

Greensboro, N.C. (1981)

Market Cap

$1.9 billion

Industry

Grocery stores

Trailing-12-Month Revenue

$1.1 billion

Management

President/CEO Craig Carlock (since 2009)
CFO Lisa Klinger (since 2009)

Trailing-12-Month Operating Margin

4.6%

Cash/Debt

$9.7 million / $76 million

Competitors

Kroger (NYS: KR)
Wal-Mart (NYS: WMT)
Whole Foods Market (NAS: WFMI)

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

On CAPS, 97% of the 102 members who have rated Fresh Market believe the stock will outperform the S&P 500 going forward. These bulls include Nalakensho and Clint35.

Earlier this month, Nalakensho tapped Fresh Market as a tasty growth opportunity:

High end market. Consumers are demanding fresh, whole foods. Expensive, but high quality foods. North Carolina company that I have watched grow from a little store in Greensboro to a chaining the Carolinas. It will perform well on the larger stage.

Over the next five years, in fact, Fresh Market is expected to grow its bottom line at a brisk rate of 21% annually. That's faster than much larger rivals like Kroger (11%), Wal-Mart (10%), and Whole Foods (18%).

CAPS member Clint35 elaborates on the Fresh Market bull case:

It looks expensive but I don't care. They're really just getting started. Plenty of room for more growth and share price appreciation. The concept of fresh high quality food will probably become more popular as the company continues to grow.

What do you think about Fresh Market, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

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

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of The Fresh Market, Wal-Mart, and Whole Foods, as well as creating a diagonal call position in Wal-Mart. The Fool owns shares of Wal-Mart and Whole Foods. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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