NEW YORK ( TheStreet) -- After Whole Foods Market (WFM - Get Report) reported earnings earlier this week, the stock has seen some selling pressure. Is this the tip of the iceberg or a buying opportunity? TheStreet's Jim Cramer and Debra Borchardt take a look.
Athough the company reported in-line results for both the top and bottom lines, analysts continued to hammer management about product pricing during the Q&A portion of the conference call.
Because of concerns about pricing and promotions and the effects they could have on margins, the stock has declined. But according to Cramer, this isn't fair, because management didn't raise the issue of the pricing and promotions. Rather, it was the analysts that kept discussing the topic.
Cramer did admit the stock was a little expensive at a price-to-earnings ratio of 35, but he said a further pullback is a buying opportunity. Nothing was wrong with the quarter, and the stock still has momentum, Cramer said.Cramer also said the company currently has 1,000 stores but could "easily" expand to 1,200 and that the conference call was not as negative as analysts are trying to spin it. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in stocks mentioned.