Whole Foods Market, Inc. (WFMI)

Worldfrog (< 20) Submitted: 7/20/06 3:09 PM : Start Price: $56.46 WFMI Score: -66.72

Another growth pick. This one has almost no debt, generates strong FCF, growing sales and EPS, and has lots of room to expand. Margins show strength despite the entry of other competitors, including the warning of entry by huge food retailer Walmart. I suspect that the quality of the WFMI product and the brand name will account for much of the appeal. On the downside, growth estimates are baked into the stock price, despite the recent drawback, so future returns are contingent upon continued good performance. Nonetheless, prices are at a low, and this is a good time to pick them up on sale.

Report this Post Replies: 2 | Reply