Contrarian Corner: Is Whole Foods' Growth Slowing?

A Whole Foods Market in Dallas.
Donna Mcwilliam
A Whole Foods Market in Dallas.

Whole Foods is one of the best-loved stocks in the supermarket space.

Most Wall Street analysts rate Whole Foods as a buy. Sixty-five percent of analysts give it a "buy" rating, according to Narrative Science.

This compares favorably to the analyst ratings of its nearest 10 competitors, which average 37.3% buys, Narrative Science writes.

But analysts have become more cautious about the stock in recent months, in part because its competitors seem to be stepping up their game.

One of my favorite contrarians, Matt Gohd, thinks Whole Foods' string of growth is slowing due to more credible competition, the decreasing ability to find "A" locations, and tougher same-store sales.

"With the stock trading at 37x earnings, it could drop 10 percent to 15 percent quickly," he writes.

Once again, it's Gohd against the analyst consensus. Tomorrow, after the bell, Whole Foods reports earnings.

The consensus estimate is calling for profit of 60 cents a share, reflecting a rise from 51 cents per share a year ago.

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