Why Whole Foods Is Ready to Bounce Back

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 Markethas 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
Safeway

Trader Joe's


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

On CAPS, 89% of the 5,052 members who have rated Whole Foods believe the stock will outperform the S&P 500 going forward.

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

If you care about what is in your food or are trying to avoid something specific like wheat gluten, Whole Foods Market is your store. If you care about maintaining traditional ways of farming or fishing, such as long-line salmon fishing, Whole Foods customers help keep those ways alive. And if you just enjoy a great shopping experience for food, Whole Foods has got to be it, period. ...

The stock has been unfairly punished after its Feb 2013 earnings report. There is no comparable growth story in the food retailer space, and with building more stores not even touching international plans yet, can you spell "L-O-N-G Runway"?

Of course, that short pitch doesn't even come close to telling the entire story for Whole Foods. You're in luck, though. The Fool's brand-new premium report on Whole Foods looks at all sides of one of the most compelling retail plays in the market. You can grab your copy, which comes with free updates for 12 months.

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

The article Why Whole Foods Is Ready to Bounce Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. 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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