Whole Foods: 4-Star Plungers Worth Pouncing On

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 and see what CAPS investors are saying about the stock right now.

Whole Foodsfacts

Headquarters (founded)

Austin, Texas (1978)

Market Cap

$16.4 billion

Industry

Food retail

Trailing-12-Month Revenue

$11.7 billion

Management

Co-Founder/Co-CEO John Mackey

Co-CEO Walter Robb

Return on Equity (average, past 3 years)

12.5%

Cash / Debt

$1.2 billion / $24.1 million

Dividend Yield

0.9%

Competitors

Kroger (NYS: KR)

Safeway (NYS: SWY)

Trader Joe's


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

On CAPS, 88% of the 4,878 members who have rated Whole Foods believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, mwlove, tapped the stock as a rather timely bargain opportunity:

I'm a horrible [CAPS] player in part because I've never rated some of my biggest winners. The recent pull-back gives me a chance to rectify that mistake with respect to Whole Foods. Yes, the stock looks expensive, but there are good reasons: superb management, excellent growth, and the highest margins in the grocery business. ... Its customers are loyal and the base is growing as organic and healthy foods become more popular. Use the express lane and buy this stock while it's cheap.

If you want market-thumping returns, you need to put together the best portfolio you can. 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.

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The article Whole Foods: 4-Star Plungers Worth Pouncing On originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Whole Foods Market. Motley Fool newsletter services recommend Whole Foods Market. 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 Motley Fool has a disclosure policy.

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