Whole Foods seems pricey
Sometimes a stock has everything you want but is not a bargain
Right now my Wall Street Survivor portfolio is full but each week I still look to see what I'd buy if I had some cash. I'd advice you not to take others' buy/sell recommendations unless you've studied how that person invests and your investment philosophy meshes with theirs.I'm 64 years old and have already accumulated a large portfolio. I want to keep what I've got but still need growth to beat future taxes, inflation and whatever other uncertainties that may be thrown up for me to cope with by either the economy or politicians.
Some of my readers have complained that my articles are "cookie cutter" but I take that as a complement because I want all my stock to have he same attributes. I want to know the same information about any potential investment and pass on any that don't meet all my criteria. They are:
- Sales and earnings growth projections should be for double digit increases
- I need instant gratification so I want to see current positive price momentum
- The stock has to have a wide and positive following by both the professional and individual investing community
- There needs to be enough published information on this company because I invest in established companies by looking at the numbers.
- I do not invest in start-ups that only have ideas and no sales and profits
- 88% Barchart overall technical buy signal
- Trend Spotter technical buy signal
- Trading above its 20, 50 and 100 day moving averages
- 11 new highs and up 11.53% in the last month
- Relative Strength Index of 69.08% that is still rising
- Trades around 67.47 which is above its 50 day moving average of 61.01
- Even though this is a grocery stock most of the Wall Street brokerage analysts following the stock consider it a growth stock
- The company currently has 297 locations and wants to eventually have over 1,000 stores
- Analysts have issued 5 strong buy, 6 buy, 11 hold and 2 under perform reports on this stock
- Sales consensus is for an increase of 12.40% this year followed by another 11.70% next year
- Earnings are estimated to increase by 32.80% this year, 13.20% next year and continue by increases of 17.57% annually for at least 5 years out
- My concern is the Price/Earnings ratio of 33.5 which is pretty high for a grocery chain and is about twice the P/E ratio of the overall market
- I like to use Motley Fool as a gauge of what the individual investor is thinking.
- Of the 4,445 readers of Fool who expressed an opinion 87% think the stock will beat the market
- The more experienced All Stars are a little more positive and 93% think it will out perform the market
| Tags: | investing strategy |
MORE ON MSN MONEY
DATA PROVIDERS
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.
LATEST POSTS
In the never-ending contest for sales, American carmakers are pulling ahead.
FIDELITY VIEWPOINTS
- How to sell covered calls - Fidelity Investments
- Savvy year-end tax moves to consider now - Fidelity Investments
- Seven ways to prepare for tax changes
- Five reasons an annual review is crucial - Fidelity Investments
- Take a look at mid caps now - Fidelity Investments
- State of the sector: Health care - Fidelity Investments
VIDEO ON MSN MONEY
ABOUT
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.

