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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Walmart Organics to Take a Bite out of Whole Foods: StockTwits

Stocks in this article: WFM WMT TFM

NEW YORK (TheStreet) -- Whole Foods (WFM) gave investors a stomachache on Wednesday.

The Mecca of organic moms, vegans and folks who read the ingredients on packaged foods is facing increased competition from the likes of Walmart (WMT), Trader Joe's and The Fresh Market  (TFM), among others. And most investors on StockTwits.com believe all the vying for healthy eaters is destined to take a bite out of prices and earnings.

Whole Foods fell more than 1.8% by 3 p.m. Sentiment on the stock is 64% bearish, according to StockTwits' analytics.

$WFM don't like the story here walked in yesterday and left after 20 mins w/nothing in hand. hit Trader's for 1/2 price -- organic to boot. -- abaris (@abaris) Apr. 16 at 02:20 PM

In a statement this week, Walmart said that it would bring "everyday low prices" to its organic products. "As part of our strategy of being relevant to customers, we want them to know that we have these products, and that we have them at prices that are better than those offered by the competition," the company said. "In organic food products, as in all of our categories, our aim is to bring customers everyday low prices, and to offer them the best prices in the marketplace on those products."

The fighting words from Walmart, which is known to take losses on some products in order to gain market share, sent Whole Foods through its 200-day moving average. Some investors said that Whole Foods' $48 stock didn't have support for another few dollars and called for further declines.

$WFM - The stock is very weak and lots o compaies doing the same thing now. If it breaks $48.50 by end of day Monday we go to $43.85 -- Todd Spigel (@tspigel) Apr. 13 at 08:16 PM

$WFM short yesterday. Increasing competition in organic food, poor charts. Thanks to @RiskReversal for first pointing it out back in Feb. -- Matt Schoner (@ms82494) Apr. 15 at 12:41 PM

Bullish investors said that shoppers would still flock to the store, regardless of cheaper alternatives. Health-conscious consumers are more likely to trust Whole Foods to deliver on non-genetically modified, raw, healthy foods than a mega-retailer known for selling inexpensive goods manufactured in China.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

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