Analysts Debate Whether a Dip in Share Price Makes Whole Foods a “Buy” (WFM)

Following a decline in share price of Whole Foods Market, Inc. (WFM) 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 growth.

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 (WFM) 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. (WFM) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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