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Stocks to Buy After a Crash: Whole Foods Market (WFM)

whole-foods-wfm-stockWhole Foods Market (WFM) would be one of these stocks to buy.

The verdict is in, and organic wins. Organic foods have infiltrated even the smallest markets at this point. “Organic” is, to my mind, the greatest marketing scheme since De Beers’ “Diamonds Are Forever.” In my experience, organic foods do generally taste better, but no company has leveraged this single word better than Whole Foods.

Whole Foods also runs an outstanding business, has a fantastic company culture and knows how to ream consumers via outrageously expensive organic products better than any other business.

WFM stock trades around $52, with just under $3 per share in cash. At estimates of $1.68 in earnings per share for FY14 and projections for 17% in long-term growth, and perhaps a 20% premium for its cash flow, I would assign it a fair value around $34. If WFM stock is unfortunate enough to fall that low, I’d absolutely buy around there.

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