Trading groceries on Whole Foods earnings beat

Whole Foods shares climbed Wednesday after better-than-expected earnings, and some "Fast Money" traders believe the grocer's stock could continue to rise.

Whole Foods posted fiscal first-quarter earnings of 46 cents per share on $4.83 billion in revenue, topping Wall Street's expectations on both metrics. Despite the beat, its comparable-store sales fell 1.8 percent.

Shares rose about 3 percent in after-hours trading.

"I think there's still growth here. It's not cheap, but it's not expensive," said trader Karen Finerman.

Produce at a Whole Foods store in Berkeley, Calif.
Jane Wells | CNBC
Produce at a Whole Foods store in Berkeley, Calif.

Whole Foods could continue to grow despite comparable-store sales "going the wrong way," trader Guy Adami contended. But trader Pete Najarian said that he would prefer Kroger in the grocery space.

Its shares have fallen nearly 12 percent this year versus a loss of about 14 percent for Whole Foods year-to-date.


Disclosures:

Pete Najarian

Long AAPL, BAC, BKE, BMY, DIS, DISCA, GE, KMI, KO, MRK, PEP, PFE, VIAB, he is long calls AA, AAL, BHP, BX, CHS, DAL, EEM, GDX, GE, HAIN, HBAN, LB, LC, MCD, MSFT, MTG, NRF, SLV, SWN, TWTR, UAL, WEN, WMB, WYNN, YDKN, he is long puts DB, FCX, MRO, MS, RIG.

Karen Finerman

Karen is long BAC, BAC calls, C, C calls, FL, GOOG, GOOGL, JPM, LYV, KORS, M, SEDG, SPY calls, URI, she is short SPY. Her firm is long ANTM, AAPL, BAC, C, FINL, FL, GOOG, GOOGL, JPM, KORS, LYV, M, MOH, NRF, PLCE, URI, her firm is short IWM, MDY, SPY. Karen Finerman is on the board of GrafTech International.

Guy Adami

Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.

Steve Grasso

Steve is Long AAPL, AEO, BA, BAC, CC, DD, DIS, DECK, EVGN, KBH, MJNA, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long AMZN, CXO, OXY, BP, CVX, RIG kids own EFA, EFG, EWJ, IJR, SPY.