February 15th 2011

(WFMI) Whole Foods Market Analyst Rates Shares Outperform

Being one of the leading natural and organic foods supermarkets, Whole Foods Market Inc. (WFMI) offers investors one of the strongest growth profiles in the industry with its strong brand image and marketing and merchandising expertise. The stock is poised to surge as the demand for healthier and natural food improves.

Whole Foods has been spurring its revenues through new store openings, acquisitions and comparable-store sales growth. Given the food retailing industry is highly fragmented, the company has been able to maintain a track record of successful integration of its regional acquisitions.

The stringent cost-control measures, effective inventory management, and improved store-level performance are driving earnings growth. Whole Foods recently posted better-than-expected first-quarter 2011 results on the back of strong sales as shoppers flocked to the grocery chain.

The quarterly earnings of 51 cents a share surpassed the Zacks Consensus Estimate of 45 cents, and jumped 59.4% from 32 cents earned in the prior-year quarter.

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August 31st 2010

Don’t Underestimate Whole Foods

It’s hard to believe that Whole Foods Market (NASDAQ:WFMI) was trading in the $50 range just one year ago. Today, the stock is struggling to stay above $10 a share. Of course these days, few stocks are immune from the global economic implosion we’re dealing with now. But Whole Foods has become that one company that I can’t help but to defend. You see, when Whole Foods first went public, it was a punching bag for every armchair analyst and media blowhard that took some kind of sick pleasure in the fact that in the first nine months of its IPO, the stock had dipped more than 30 percent. Of course, we cheered (and profited), after the stock enjoyed a meteoric rise in the years that followed. But now that the stock has been beaten back down again, the naysayers are back with a vengeance.

Now I won’t dispute Whole Foods’ less-than-stellar short-term outlook for investors.

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