Trade-Ideas: Whole Foods Market (WFM) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified Whole Foods Market ( WFM) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Whole Foods Market as such a stock due to the following factors:
- WFM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $190.4 million.
- WFM is up 2.1% today from today's close.
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More details on WFM: Whole Foods Market, Inc. operates natural and organic foods supermarkets. Its stores offers produce, packaged goods, bulk, frozen, dairy, meat, bakery, prepared foods, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, body care, pet foods, grocery, and household goods. The stock currently has a dividend yield of 1.9%. WFM has a PE ratio of 2. Currently there are 3 analysts that rate Whole Foods Market a buy, 1 analyst rates it a sell, and 17 rate it a hold. The average volume for Whole Foods Market has been 5.7 million shares per day over the past 30 days. Whole Foods Market has a market cap of $9.4 billion and is part of the services sector and retail industry. The stock has a beta of 0.82 and a short float of 12.3% with 6.12 days to cover. Shares are down 14.2% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Whole Foods Market as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.9%. Since the same quarter one year prior, revenues slightly increased by 3.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.93 is somewhat weak and could be cause for future problems.
- Net operating cash flow has decreased to $232.00 million or 40.05% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- WFM's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 38.97%, which is also worse than the performance of the S&P 500 Index. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, WFM is still more expensive than most of the other companies in its industry.
- You can view the full Whole Foods Market Ratings Report.
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