Why Jim Cramer and Stephanie Link Sold Whole Foods Market (WFM) Stock

NEW YORK (TheStreet) -- TheStreet's Jim Cramer and Stephanie Link bought Whole Foods Market  (WFM) for their Action Alerts PLUS portfolio on April 8 but sold it on April 29 ahead of the company's quarterly earnings because they did not like what they were hearing and the way the stock was reacting.

Cramer says Whole Foods did not go up during its recent run, so Cramer and Link knew something was wrong. He points out management said on the earnings conference call it needs to reinvent the company, but investors do not seem to want to stick with the stock through such a period.

Link adds this latest report was the sixth disappointing one in the last seven quarters and notes confidence in Whole Foods' guidance has been shaken. She argues the guidance is actually "quite aggressive" given the company's need to be more price competitive.

Must Watch: Jim Cramer and Stephanie Link Not Sticking With Whole Foods

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Cramer says he is not ready to write off the company yet, but he notes that earnings cuts lead to multiple cuts and this stock has just begun a multiple shrinkage.

WFM Chart

WFM data by YCharts

STOCKS TO BUY: TheStreet's Stocks Under $10 has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.


WATCH:
Jim Cramer on Whole Foods, Disney Earnings
More videos from Jim Cramer

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

If you liked this article you might like

Cramer: Food Stocks Are Going Hungry

Amazon Teams With Food Delivery Service to Launch Amazon Restaurants

Target Is Taking on the Big Guys

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