E = Earnings Are Increasing Quarter-Over-Quarter
Rising earnings and revenue growth figures are important because they are tied to a rising stock price. What do the last four quarterly earnings and revenue growth figures for Whole Foods look like? The last four quarterly earnings growth (Y-O-Y) rates have been: 20, 46.34, 26, and 25.49 percent while the last four revenue growth (Y-O-Y) rates have all been: 13.71, 23.64, 13.65, and 13.6 percent. Whole Foods has displayed double-digit earnings and revenue growth rates but they seem to have slowed in the latest quarter.
More importantly, how did the markets like these numbers? The last four quarterly earnings announcement reactions help gauge investor sentiment on Whole Foods’s stock. The last four quarters have seen next trading session returns of -9.7, -5.85, 11.32, and 7.56 percent. The markets have not been satisfied with the last two reported quarters.
E = Excellent Relative Performance Versus Peers and Sector
Whole Foods has been a leader over the last few years but how has the stock done, relative to its peers and sector, year-to-date? Year-to-date, the stock is returning -6.98 percent while its competitors, Kroger (NYSE:KR), Safeway (NYSE:SWY), Fresh Market (NASDAQ:TFM), and sector are returning 16.8, 29.54, -18.6, and 10.39 percent respectively. Year-to-date, Whole Foods has been trailing its peers and sector by a wide margin.
Whole Foods is deeply involved in a natural and organic food trend that is poised to continue. This trend has taken it a long way as the stock is trading near all-time high prices that are supported by double-digit earnings and revenue growth rates. However, Whole Foods has not performed so well relative to its peers and sector. WAIT AND SEE what Whole Foods does in the coming quarter.
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