Following a decline in share price of Whole Foods Market, Inc. (
) after Thursday's earnings report, analysts are debating whether
this dip is a buying opportunity.
Analysts have seen a deceleration in growth from WFM in recent
quarters. The latest earnings report have reinforced this notion of
deceleration, especially after the company adjusted its guidance
outlook lower than Wall Street consensus.
However, Jefferies Equity research analyst Scott A. Mushkin
said, "With underlying strong trends in natural/organic, with WFM
operating itself at a high level and with the possibility of store
growth acceleration, we would use any weakness as a buying
opportunity." He has an optimistic view of Whole Foods future
growth upside; he is less concerned with recently slowdown in
Jefferies give Whole Foods a "Buy" rating with a price target of
$105.00. That target is a +16.2% upside from Thursday's closing
price of $90.31.
Whole Foods shares were down 26 cents, or -0.29%, in premarket
trading on Friday.
The Bottom Line
Shares of Whole Foods (
) have a .89% dividend yield, based on last night's closing stock
price of $90.31. The stock has technical support in the $85 price
area. If the shares can firm up, we see overhead resistance around
the $95-$96 price levels.
Whole Foods Market, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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