Why Fairway Group Holdings (FWM) Stock Is Declining On Tuesday

NEW YORK (TheStreet) -- Shares of Fairway Group Holdings Corp. (FWM) are lower by -4.38% to $6.12 in late-morning trading as the specialty grocery stores sector reacts poorly to The Fresh Market's (TFM) ratings downgrade today to "sell" from "neutral" at Goldman Sachs (GS).

Goldman cut its rating on The Fresh Market because the company is facing increasing competition and cost inflation.

The firm also reduced its price target on the stock to $27 from $36.

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Other stocks reacting negatively to the downgrade include Whole Foods Market Inc. (WFM), down -1.78% to $38.07, Weis Markets Inc. (WMK), lower by -1.10% to $44.90, and Roundy's Inc. (RNDY) down -1.94% to $5.06.

Separately, TheStreet Ratings team rates FAIRWAY GROUP HOLDINGS as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:

"We rate FAIRWAY GROUP HOLDINGS (FWM) a SELL. This is based on the combination of unfavorable investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, generally high debt management risk and feeble growth in its earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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