NEW YORK (TheStreet) -- After several quarters of being driven lower, shares of Whole Foods Market (WFM) are finally rallying, due to its better-than-expected fourth-quarter earnings results. "This is the beginning of the turn," Jim Cramer said on Thursday's CNBC segment of Cramer's "Mad Dash."
Whole Foods slightly missed revenue expectations, but topped analysts' EPS estimates, leading to a 10% rally in the stock price. The company has so many positives going for it, said Cramer, the co-manager of the Action Alerts PLUS portfolio.
Gross margins improved, the mobile application is working well and the cannibalization in the Boston region is over, he said. But that's not all. The store remodels, affinity and wine clubs, and delivery service are also helping to improve performance.
"It all came together in one quarter," Cramer reasoned, and the rally isn't finished. Because investors have been so pessimistic on Whole Foods, the stock has suffered a great deal, declining 31% in 2014 before fourth-quarter results were released.
Now that investors are warming up to the stock, the rally can continue. The company's conference call was very encouraging, he concluded, adding that co-CEOs "[John] Mackey and [Walter] Robb are back and they're better than ever."