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JimVanMeerten (56.71)

Whole Foods tastes double digint growth



March 21, 2011 – Comments (0) | RELATED TICKERS: WFM

This morning I took a list of companies that have had double digit growth in both sales and earnings and are projected to have that double digit growth continue and ran them against the Barchart technical indicators and Whole Foods Markets (WFMI) come up on top of the list.

Whole Foods Market (WFMI) is the largest purveyor of natural foods in the world. They own and operate the country's largest chain of natural food supermarkets. They are like an old-fashioned neighborhood grocery store, an organic farmer's market, a European bakery, a New York deli, and a modern supermarket all rolled into one! The Company also offers a wide variety of non-perishable natural products on its Web site at

If you visit one of their stores, don't expect to find one of those hippy granola bar shops of the 70's or a Pumping Iron protein drink joint.  There offer a lot of high end organic fresh food and even organic wine and beer. If you're going to drink, why not drink without guilt?

This isn't a small chain but has over 290 locations and is expected to gross over $10 billion in sales this year.  Growth as measured in same store sales has been 8.7%.  Recently during the recession some shoppers traded down but now as the economy loosens they are returning in droves.

Technical Factors:

1 - 100% Barchart technical buy signals

2 - Trend Spotter (tm) buy signal

3 - 4 new highs and up 2.39% in the last month

4 - Relative Strength Index is 68.43% and rising

5 - Trades around 14.40 with a 50 day moving average of 55.68

Fundamental Factors:

1 - Wall Street brokerage analysts have issued 9 buy and 15 hold reports recently

2 - Sales are projected to increase by 12.30% this year and 11.80% next year

3 - Earnings are projected to increase by 26.40% this year, 14.40% next year and 16.74% for the next 5 years

Investor Sentiment:
1 - This stock has extremely high and positive general investor sentiment

2 - CAPS members on Motley Fool voted 3,752 to 573 that the stock will beat the market

3 - The more experienced All Stars agree with a 1,253 to 106 vote

4 - Fool notes that the last 8 Wall Street columnists reports have been positive including a recent 2/10 recommendation by Zacks

In the US shoppers are now looking at quality as well as price. I've bought some of their products and will return.  Put this one on your watch lists.

Jim Van Meerten is an analyst for  Marketocracy Capital Management.  He shares his knowledge and experience from over 40 years of investing in stocks, mutual funds and ETFs  in his daily blog -- Barchart Portfolio Blogs.

Through Marketocracy Capital Management  you can have a Separately Managed Account that mirrors his Barchart Van Meerten New High model portfolio.

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