Cramer: ‘Whole Foods got its mojo back’

Whole Food's comeback
Whole Food's comeback   

Whole Foods is back in the game, and Jim Cramer thinks it's just getting started for the long-term.

He is serious about this recommendation too, so even if you call it "Whole Paychecks" and would rather shop at your local sausage specialty store, Cramer thinks it is a good idea to add this stock to your portfolio anyways.

Never write off a company with a great concept and terrific management. Last year, Whole Foods was getting pounded by the competition, as investors feared that it didn't have a strategy to deal with the boom of natural and organic food products in the market.

Fast forward to last week, and the stock had fallen from $64 to $39 in the past year.




JBR_WHOLEFOODS_06
JB Redd | Bloomberg | Getty Images

Just as Cramer started to think this stock had hit rock bottom, the company reported a terrific earnings beat and raise quarter and had optimistic commentary from management.

Just like that – boom - it was back in the game and has been on the rise ever since.

Even though the stock spiked last week, Cramer thinks it is just getting started for the long-term.

"Now that Whole Foods has solved its problems though a number of brilliant new initiatives, I think we can now consider this a fabulous turnaround story that could potentially have years of upside going forward as analysts are forced to raise their earnings estimates," said the "Mad Money" host.

With the rise of the organic and natural food movement, he thinks this is a powerful long-term theme and the stock can once again be a core holding in your portfolio.

----------------------------------------------------------
Read more from Mad Money with Jim Cramer
Cramer Remix: Why this week is key
Cramer's Gameplan: Gridlock is good!
Cramer: Elections and charter schools
----------------------------------------------------------

"My view? I've been waiting for Whole Foods to mount a major comeback, and this is it. To me, this looks like the company's first good quarter out of many, which is why I'm throwing my full support behind the stock here and telling you it can go much higher from these levels."

With its embracement of technology as the first national supermarket to accept Apple Pay, to remodeling approximately 70 percent of its stores that are more than ten years old, to innovative advertising campaigns that attempt to differentiate itself as America's healthiest grocery store – it's clear that Whole Foods is back. With a vengeance.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

Cramer's New Book