This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

5 Stocks That Make for Healthy Investments

Stocks in this article: WFMTFMHAINBNNYGNC

MILLBURN, N.J. ( Stockpickr) -- With obesity, diabetes and heart disease on the rise in the U.S., consumers are getting the message, seeking out healthier foods and diet supplements.

The companies that stand to benefit range from food producers and processors to supermarkets to specialty retail and weight-management programs.

With that in mind, here are five stocks that will keep you fit and your investment account healthy.

Whole Foods

Whole Foods (WFM) might not be one of the largest supermarkets in the nation, but it is amongst the fastest-growing. The company is also the largest publically owned chain that exclusively sells natural and organic groceries and fresh food.

The company has locations in 39 states and the District of Columbia. Whole Foods operates 310 stores and 10 distribution centers in the U.S., Canada and United Kingdom. Sixty-seven of the company's stores are concentrated in California, and only 15 reside outside the U.S.

>>5 Stock Trades for a Confusing Market

For comparison's sake, grocery chain Kroger (KR) has about 2,400 stores, and Safewy has about 1,700, but those chains can't compare to Whole Foods in terms of quality. Other high-end and natural/organic supermarkets include Trader Joe's, with about 350 stores in 31 states, and The Fresh Market (TFM), with 115 stores concentrated in 21 states.

As you can see, there is ample opportunity for Whole Foods to grow. Check out its past and projected sales and earnings growth:

Should the company begin to ramp up expansion, and I believe that it will come 2013 and 2014, then Whole Foods would be the stock to own for the next decade.

The Fresh Market

The Fresh Market (TFM) is a smaller competitor to Whole Foods in the organic and natural foods business, and in that respect, the company also makes a compelling investment. But TFM's estimated growth rates -- 17% for sales in the current year and 18% in the following year, and 21% for EPS in the current year and 25% in the following year -- could make it an even more compelling investment.

There is another factor worth considering. Several years ago, in 2007, Whole Foods purchased a smaller competitor, Wild Oats Markets, for $700 million. The market capitalization of The Fresh Market is $2.5 billion. While I am not saying that Whole Foods would acquire The Fresh Markets, it is quite conceivable that one of the larger domestic national supermarket chains or an international chain seeking to get into the organic and natural food retail business could.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs