Whole Foods Market, Inc. : Near to the USD 83 support area
Whole Foods Market shows strong fundamentals. The Thomson Reuters consensus regularly revised upward EPS estimates for 2013 and 2014. And sales are expected to grow by more than 10% for each of the next three years. The gap open on the 16th February has been caused by a payment of dividends.
Graphically, the stock is in a consolidation phase. But prices are near to the USD 83 long term support, level corresponding to the 100-week moving average. And technical indicators shows an oversold situation. This configuration could help the security to bounce towards the USD 93.3 resistance.
Therefore, the proximity of the USD 83 support is an opportunity to take a long position in Whole Foods Market. The first goal is a return to the USD 93.3 resistance area. In fact, the security has to cross this level in order to re-establish a bullish trend in the medium term, and to comeback to the USD 101.2 resistance. A stop loss order can be placed under the support currently tested.
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Camille Chretien
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Valuation |
2013e |
2014e |
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PER (Price / EPS)
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36,1x |
30,4x |
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Capitalization / Revenue
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1,49x |
1,30x |
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EV / Revenue
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1,42x |
1,22x |
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EV / EBITDA
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15,1x |
12,7x |
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Yield (DPS / Price)
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0,69% |
0,81% |
| Profitability |
2013e |
2014e |
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Operating Margin (EBIT / Sales)
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6,71% |
7,04% |
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operating laverage (Delta EBIT / Delta Sales)
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1,55x |
1,39x |
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Net Margin (Net Profit / Revenue)
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4,17% |
4,37% |
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ROA (Net Profit / Asset)
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10,6% |
12,0% |
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ROE (Net Profit / Equities)
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14,1% |
15,8% |
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Rate of Dividend
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25,0% |
24,5% |
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