Whole Foods Market, Inc.
), one of the leading natural and organic foods supermarkets, to
beat expectations when it reports first-quarter fiscal 2013
results on Feb 13, 2013.
Why a Likely Positive Surprise?
Our proven model shows that Whole Foods Market is likely to
beat earnings because it has the right combination of two key
Positive Zacks ESP:
Whole Foods Market currently has an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of +1.30%. This is because the Most Accurate Estimate stands at
78 cents, while the Zacks Consensus Estimate is pegged at 77
Zacks Rank #3 (Hold):
Note that stocks with Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating earnings estimates. The
sell-rated stocks (Zacks Rank #4 and #5) should never be
considered going into an earnings announcement.
The combination of Whole Foods Market's Zacks Rank #3 (Hold)
and +1.30% ESP makes us very confident regarding a positive
earnings beat on Feb 13.
What is Driving the Better than Expected Earnings?
Whole Foods Market with a strong brand image, and marketing
and merchandising expertise, offers investors one of the
strongest growth profiles in the industry. The company is
revamping its pricing strategy and concentrating more on value
offerings, while maintaining healthy margins.
Cost containment efforts, effective inventory management, and
improved store level performance are driving earnings growth. The
positive trend is seen in the trailing four-quarter average
surprise of 6.7%.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat:
Flowers Foods, Inc.
), Earnings ESP of +5.56% and Zacks Rank #1 (Strong Buy).
J&J Snack Foods Corp.
), Earnings ESP of +5.00% and Zacks Rank #1 (Strong Buy).
The Hershey Company
), Earnings ESP of +0.96% and Zacks Rank #2 (Buy).
FLOWERS FOODS (FLO): Free Stock Analysis
HERSHEY CO/THE (HSY): Free Stock Analysis
J&J SNACK FOODS (JJSF): Free Stock Analysis
WHOLE FOODS MKT (WFM): Free Stock Analysis
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