Why Whole Foods Is Still Worth The Watch

Whole Foods Market, Inc. (WFM) storm has finally passed as investors saw new options arise for the September 4th expiration. The put contract at the $41.00 strike price currently has a bid of $1.55. For investors that are interested in purchasing Whole Foods Market shares, the $41.00 strike/share represents an almost 1 percent discount to the current stock trading price.

Whole Foods Market's shares were down more than 18% year to date following its  second-quarter earnings report in which comparable store-sales growth of 3.6% fell short of analyst expectations.
The company has been working to regain its all-time highs near $65.

“Our Whole Foods Market brand has helped lead the shift in consciousness toward fresh, healthy foods by offering the highest quality, broadest selection, and best customer service, and we believe we can triple the number of Whole Foods Market stores in the United States. At the same time, we also see an opportunity to leverage our long history of retail innovation and extend our reach in the marketplace,” said John Mackey, co-founder and co-chief executive officer of Whole Foods Market.

The retailer has promising long term growth opportunities for investors. Whole Foods just announced in June that its new streamlined, value-focused brand: 365 by Whole Foods Market will begin launching in 2016. The company's new stores will offer everyday low prices and convenience on organic and  natural and organic products. “We are excited to introduce 365 by Whole Foods Market to bring healthy foods to even more communities with a fresh, quality-meets-value shopping experience that's fun and convenient,” Jeff Turnas said. “A modern, streamlined design with innovative technology and a carefully curated product mix will offer an efficient and rewarding way to grocery shop.” Turnas will serve as president of 365 by Whole Foods Market.

Whole Foods new 365 stores are poised to perform beyond expectations. The company currently operates 422 stores with 403 stores in the United States, 10 stores in Canada and  9 stores in the UK. Whole Foods price to earnings ratio of 24.77 is trading at a discount of nearly 10 points lower than the company's 3 year average price to earnings ratio of 34.16.


Published on Jul 28, 2015
By Jennifer Lynn

Copyrighted 2020. Content published with author's permission.

Posted in ...