NEW YORK (TheStreet) -- With the S&P 500roughly flat on Thursday, it may seem like a calm day on Wall Street. But that's not the story for all stocks, Whole Foods Market (WFM) in particular. The stock is down more than 12% as it hit 52-week lows after the company reported lower-than-expected earnings and revenue.
On CNBC's "Fast Money Halftime" show, Joseph Terranova, chief market strategist for Virtus Investment Partners, said he used to love the stock and even owned it at one point. But it's a much different story now.
Whole Foods should be doing much better, with falling energy prices and a stronger dollar, because it doesn't have international exposure, Terranova explained. But it's not doing better and a management shakeup may be needed.
Investors looking for a quick trade can buy Whole Foods near $36, but for the most part, they should stay away, said Stephen Weiss, founder and managing partner of Short Hills Capital Partners LLC. The stock is still expensive, as earnings and same-store sales have declined.
Josh Brown, CEO and co-founder of Ritholtz Wealth Management, added that $36 is a "highly significant" level of support for Whole Foods. Investors, however, should avoid buying the stock, because he's not all that sure $36 will ultimately be the low this time around.
Pete Najarian, co-founder of optionmonster.com and trademonster.com, is tempted to buy at $36, but he's taking a pass for now. The company's new store concept, called 365, is attractive, but won't help the stock for at least a year. Competition is "killing" Whole Foods and the company has an image problem, he said, adding that for now, the stock is in the penalty box.
Chuck Grom, an analyst at Sterne Agee, was not happy with the results, either, downgrading the stock to neutral from buy and lowering his price target to $37 from $55. On the conference call, management didn't provide many details about 365, which makes it hard to get excited about. The stock simply has too high of a valuation, given all of the uncertainties plaguing the company now, Grom said.
Unlike Whole Foods Market, Facebook (FB) - Get Reporttopped earnings-per-share and revenue estimates, and also reported higher margins. The stock, however, is still trading lower on the day, falling 2.5%
Too many investors were looking for Facebook to make a run at $100, but the stock couldn't sustain its momentum, Terranova said. It's still a good pick for the long term, as the company's results were very impressive.
Brown agreed, saying, "I don't think you sell it." The stock is still up 20% on the year, and the company hasn't even begun to monetize other assets such as WhatsApp and Facebook Messenger.
Najarian concurred, adding that video ads and Instagram will be big contributors to Facebook's profits in the future.
Chevron (CVX) - Get Report and Exxon Mobil (XOM) - Get Report are scheduled to report earnings before the opening bell on Friday, but Najarian is avoiding the two oil juggernauts. Goldman Sachs' Jeff Currie predicts oil will head to $45 per barrel, in which case oil stocks are likely to suffer, he explained.
The exception? Najarian said investors can buy oil stocks if they are building a long-term position in the sector.
The industry is cheap, but investors need insight on where oil prices are headed before getting long, Weiss reasoned. Without that clarity, it's just too tough to invest in oil stocks now.
Brown added that investors can buy better stocks with more clarity, solid dividends and attractive share buybacks while avoiding the energy industry.
Like Najarian, Terranova said investors who are thinking longer term and want exposure to the energy sector can consider positions in Chevron and Exxon, particularly Exxon.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.