Talking Numbers

Organic problems for Whole Foods

Organic problems for Whole Foods

Organic foods may be the latest trend at your dinner parties, but traders aren't exactly fixed on the fad.

And investors felt the burn Wednesday, after weaker-than-expected earnings from Whole Foods sent ripples across the space.

Whole Foods shares fell almost 20 percent, to its lowest levels in two years, after the company missed on earnings per share and cut its full year forecast.

(Read: )

Its peers weren't far behind. Sprouts, Fresh Market and Fairway all lost 12 percent or more respectively.

So is Whole Foods a stock you want to avoid? Or could Wednesday's action be buying opportunity?

"I think this is a solid entry point for Whole Foods," said Steve Cortes of Veracruz TJM, who bought shares of Whole Foods during Wednesday's selloff.

And Cortes has two reasons why you should be long whole foods at these levels: potential for growth in the organic food space, and lack of strong competition.

But Cortes isn't going all in, "this is not for the timid. Keep positions small," he warned.

(Watch: Whole Foods hit; How bad is consumer?)

Ari Wald of Oppenheimer isn't as enthusiastic about today's action. "This stock is in free fall," said Wald, also pointing out that there is no support for this stock.

Wald's advice, sit on the sidelines until there is some accumulation on the stock.

Click on the video above for Wednesday's full segment on Whole Foods.

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