Whole Foods Market Inc. (WFM): Today's Featured Retail Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Whole Foods Market ( WFM) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day down 0.3%. By the end of trading, Whole Foods Market fell $9.40 (-9.7%) to $87.50 on heavy volume. Throughout the day, 14 million shares of Whole Foods Market exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $87.11-$89.88 after having opened the day at $89.70 as compared to the previous trading day's close of $96.90. Other companies within the Retail industry that declined today were: Stamps.com ( STMP), down 14.6%, Fresh Market ( TFM), down 8.4%, ALCO Stores ( ALCS), down 6.7%, and Orchard Supply Hardware ( OSH), down 4.7%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Whole Foods Market, Inc. owns and operates a chain of natural and organic foods supermarkets. The company offers produce, grocery, meat and poultry, seafood, bakery, prepared foods and catering, coffee and tea, nutritional supplements, and vitamins. Whole Foods Market has a market cap of $17.82 billion and is part of the services sector. The company has a P/E ratio of 38.1, above the S&P 500 P/E ratio of 17.7. Shares are up 5.4% year to date as of the close of trading on Wednesday. Currently there are 17 analysts that rate Whole Foods Market a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Whole Foods Market as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, GNC Acquisition Holdings ( GNC), up 10.3%, Best Buy ( BBY), up 3.9%, Big Lots ( BIG), up 3.8%, and Stein Mart ( SMRT), up 3%, were all gainers within the retail industry with CVS Caremark ( CVS) being today's featured retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

This Walmart Concept Just Saw the Most New Visitors in Over 3 Years

Boeing Flies Dow to Another Record Close, S&P 500 and Nasdaq Miss Out

Cramer: Market Rushes to Refill Its Glass

Why Amazon Is Building a Second Headquarters Worth $5.5 Billion

Walmart's War With Amazon Is Becoming Comical In One Way