4-Star Stocks Poised to Pop: Whole Foods Market

Updated

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 (NAS: WFM) has earned a respected four-star ranking.

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

Whole Foods facts

Headquarters (founded)

Austin, Texas (1978)

Market Cap

$15.6 billion

Industry

Food retail

Trailing-12-Month Revenue

$10.5 billion

Management

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

Return on Equity (average, past 3 years)

11.2%

Cash/Debt

$849.2 million / $19.3 million

Dividend Yield

0.7%

Competitors

Kroger
Safeway
Trader Joe's


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

On CAPS, 88% of the 4,698 members who have rated Whole Foods believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, GorGecko99, tapped the stock as a particularly special selection:

Let's be honest, people with money will always shop at Whole Foods. People with less money will stop in and buy selected products. People with no money will shop at Whole foods when they can afford it. There is just too many specialty items that consumers, rich and poor alike, can't get anywhere else. The wine and [sushi bars] have become social places to go. This is also one of the few companies that know what customer service is all about.

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. Of course, despite a strong four-star rating, Whole Foods may not be your top choice.

We've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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. The Motley Fool owns shares of Whole Foods. Motley Fool newsletter services have recommended buying shares of 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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