Whole Foods Market, Inc.
), one of the leading natural and organic foods supermarkets, is
slated to report its second-quarter fiscal 2014 results on May 6,
2014. In the last quarter, it posted a negative surprise of
4.55%. Let's see how things are shaping up for this
Factors this Past Quarter
Whole Foods posted lower-than-expected first-quarter fiscal
2014 results and trimmed its sales and earnings forecast,
thereafter. Increasing competition and aggressive pricing weighed
upon the company's performance as more and more companies are
entering into the organic and natural food business.
Comparable-store sales also fell short of management's
Our proven model does not conclusively show that Whole Foods
is likely to beat earnings estimates this quarter. This is
because a stock needs to have both a positive
and a Zacks Rank #1, #2 or #3 for this to happen. This is not the
case here, as you will see below.
Negative Zacks ESP:
ESP for Whole Foods is -2.44%. This is because the Most Accurate
estimate stands at 40 cents, while the Zacks Consensus Estimate
is pegged at 41 cents.
Zacks Rank #3 (Hold):
Whole Foods' Zacks Rank #3 when combined with a negative ESP
makes surprise prediction difficult. We caution against stocks
with a Zacks Ranks #4 and #5 (Sell rated stocks) going into the
earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements:
) has an Earnings ESP of +2.70% and a Zacks Rank #1 (Strong
Wynn Resorts Ltd
) has an Earnings ESP of +2.87% and a Zacks Rank #2 (Buy).
) has an Earnings ESP of +1.19% and a Zacks Rank #3.
TIME WARNER INC (TWX): Free Stock Analysis
UNIT CORP (UNT): Free Stock Analysis Report
WHOLE FOODS MKT (WFM): Free Stock Analysis
WYNN RESRTS LTD (WYNN): Free Stock Analysis
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