NEW YORK (TheStreet) -- Grocery superstar Whole Foods Market's (WFM - Get Report) shine faded after the company reported disappointing earnings after the market closed Tuesday. The market reacted quickly, sending shares to less than $40 for the first time since July 2012.
In Jim Cramer's book Get Rich Carefully, he writes about buying shares in companies that beat estimates and raise guidance. It's a one-two punch combination that historically is very profitable. The flip-side is selling shares in companies that miss and lower their outlooks. Unfortunately for Whole Foods shareholders, more continued pressure should be anticipated.
Analysts were quick to adjust, and no less than nine adjusted their outlook and or price targets.
- Canaccord Genuity - Lowered price target from $63 to $49
- Jefferies Group - cut rating from a buy to a hold and lowered price target from $61 to $46
- Cantor Fitzgerald - lowered rating from hold to sell
- BMO Capital Markets - lowered rating from outperform to market perform
- Deutsche Bank - changed rating from buy to hold
- Sterne Agee - cut rating from buy to neutral
- Piper Jaffray - lowered rating from overweight to neutral
WATCH: More market update videos on TheStreet TV | More videos from Brittany Umar Bucking the trend of downgrades, Argus views the falling share price as a buying opportunity and upgraded Whole Foods from hold to buy. Argus may prove it's the smartest analyst in the room, but investors should proceed with caution. I will explain why.