Whole Foods' slide is a gift to investors

Shares of the upscale grocer plummeted Wednesday after announcing earnings. It's still a great investment going forward.

By Motley Fool Investor Beat May 7, 2014 6:40PM
Shares of organic-food retailer Whole Foods Market (WFM) got pummeled Wednesday after missing analyst expectations on a number of metrics. Revenue came in light at $3.32 billion versus expectations of $3.34 billion, and earnings were 38 cents a share compared to expectations of $41 cents. On top of all that, Whole Foods trimmed its full-year guidance.

That said, there were some highlights in the company's report. For instance, management provided investors with its strategic initiatives through 2018, which included improving operating margins and beginning to sell lower-priced items. Management also reported that Whole Foods has experienced six consecutive years of lowering store expenses.
So, is today a chance for investors to get in on Whole Foods for cheap? Caption: Produce on a Whole Foods paper bag
Credit: (© Elise Amendola/AP)

On Wednesday's Stock of the Day, Motley Fool analyst Simon Erickson says the day was absolutely a gift for investors. With the company still making $1,000 per square foot, and continuously redefining what grocery stores look like, Whole Foods remains a great investment going forward.

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Tags: WFM
1Comment
May 8, 2014 12:23PM
avatar

Be careful here...

"Organically grown produce" is widely available elsewhere these days.

Competition is taking their advantage away.

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