Will Whole Foods Beat in 1Q13? - Analyst Blog
12 Febbraio 2013 - 1:11PM
Zacks
We expect Whole Foods Market, Inc. (WFM), 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
components.
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 cents.
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. (FLO), Earnings ESP of
+5.56% and Zacks Rank #1 (Strong Buy).
J&J Snack Foods Corp. (JJSF), Earnings ESP
of +5.00% and Zacks Rank #1 (Strong Buy).
The Hershey Company (HSY), Earnings ESP of
+0.96% and Zacks Rank #2 (Buy).
FLOWERS FOODS (FLO): Free Stock Analysis Report
HERSHEY CO/THE (HSY): Free Stock Analysis Report
J&J SNACK FOODS (JJSF): Free Stock Analysis Report
WHOLE FOODS MKT (WFM): Free Stock Analysis Report
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