Whole Foods Market, Inc. (WFM) is slated to report its fourth-quarter fiscal 2014 results on Nov 5. In the last quarter, it had delivered a negative surprise of 5.1%. Let’s see how things are shaping up for this announcement.
Factors Influencing This Quarter
Whole Foods has been grappling with increasing competition and aggressive pricing that are weighing on the company’s performance as more and more companies are entering as well as expanding their presence in the Organic & Natural food business.
Earnings Whispers?
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 Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Earnings ESP for Whole Foods is 0.00%. This is because both the Most Accurate and the Zacks Consensus Estimate stand at 32 cents.
Zacks Rank: Whole Foods currently has a Zacks Rank #4 (Sell). 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.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements:
L Brands, Inc. (LB) has an Earnings ESP of +6.25% and a Zacks Rank #2 (Buy).
The Walt Disney Company (DIS) has an Earnings ESP of +3.41% and a Zacks Rank #2.
Dean Foods Company (DF) has an Earnings ESP of +15.39% and a Zacks Rank #3 (Hold).
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