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No. of Recommendations: 0
5-7-14, $38.94
Conclusion
WFM is not a buy at this time. The latest results have led to a lowering of management guidance for the year, margins are near peak and will likely decline as management cuts prices in response to increasing competition in the space, and compares though moderating are still quite tough. They still have a strong balance sheet, pay a dividend, buy shares, and are holding to a sustained 10% growth rate with plenty of room until saturation. Trades for 22x VL2014 EPS estimate of $1.60 and 18.5x VL2015 estimate of $1.90 on an EV basis. These assume sales growth of 11.5% and 13% and EPS growth of 9% and 19%. The bottom line seem aggressive with 2014 above management’s updated guidance and 2015 well above management’s vision. In fact Stern Agee moderated their 2014 EPS to $1.56 from $1.62 and their 2015 EPS from $1.93 to $1.76.


It's at $40.94 today, 6/1/15.

Up 5% plus divy in over a year -- meh, you didn't miss the boat -- or at least it returned to let you on if you still like the inning and where we will be during the 7th inning stretch.



I wouldn't have bet the farm
But 19.4b vs. 14.6b


14.67b today

VL projects 1-11% annual returns out to 2018-2020.
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