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Stock Market & Financial Investment News

News Breaks
July 31, 2014
11:13 EDTTFM, KR, WFM, FWMWhole Foods retreats after lowering guidance
Shares of Whole Foods Market (WFM) are sinking after the company cut its full-year guidance. WHAT'S NEW: Whole Foods reported stronger than expected third quarter revenue and earnings per shares of $3.4B and 41c, respectively, and said that its comparable store sales had risen 3.9%. However, the supermarket operator cut its full-year sales growth outlook to 9.6%-9.9% from its previous guidance of 10.5%-11%. The company also reduced its full-year EPS outlook to $1.52-$1.54 from $1.52-$1.56 and cut its full-year comparable sales growth guidance to 4.1%-4.4% from 5%-5.5%. "Our business model is producing industry-leading sales per gross square foot, healthy returns on invested capital and strong operating cash flow," said Whole Foods co-CEO Walter Robb in a statement. "We are seeing signs of stability in our sales trends and believe our strategic initiatives will help generate further momentum and produce increasing returns on invested capital over the long term," Robb added. ANALYST REACTION: JPMorgan analyst Ken Goldman downgraded the stock to Neutral from Overweight, stating that the company is likely to deliver low fiscal 2015 EPS as it increases its investments in a number of areas, including advertising, store refreshes, and home delivery. Additionally, Whole Foods could lower its fiscal 2015 EPS guidance well below the $1.74 it provided last quarter, the analyst added. Goldman reduced his fiscal 2015 and fiscal 2016 EPS estimates significantly below consensus levels and cut his price target on the stock to $38 from $48. Also downgrading the stock was UBS analyst Jason DeRise. Increased competition has caused Whole Foods' market share gains in natural food to stall, according to DeRise. To attract additional natural food customers it must cut its prices, he contended. The analyst downgraded the stock to Neutral from Buy and cut his price target to $41 from $48. Morgan Stanley was more upbeat on the stock, saying that the company's growth is poised to re-accelerate over the longer term. The firm recommended buying the stock on weakness and kept a $50 price target and Overweight rating on the shares. PRICE ACTION: In mid-morning trading, Whole Foods fell 3.4% to $37.76. Other supermarket stocks also retreated, with The Fresh Market (TFM) falling 3.5% to $29.62, Fairway Group (FWM) losing 1.8% to $5.95, and Kroger (KR) losing 1% to $49.22.
News For WFM;TFM;FWM;KR From The Last 14 Days
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January 30, 2015
08:40 EDTWFMWhole Foods price target raised to $60 from $49 at Canaccord
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January 28, 2015
07:32 EDTWFMWhole Foods outlook still positive, says Oppenheimer
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07:25 EDTKRKroger management to meet with Deutsche Bank
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January 27, 2015
07:49 EDTKRKroger management to meet with Deutsche Bank
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January 23, 2015
10:02 EDTWFM, TFMOn the Fly: Analyst Initiation Summary
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January 22, 2015
16:24 EDTTFMThe Fresh Market initiated with a Neutral at Wedbush
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16:18 EDTWFMWhole Foods initiated with an Outperform at Wedbush
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10:03 EDTTFM, WFMOn the Fly: Analyst Initiation Summary
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07:30 EDTTFMThe Fresh Market initiated with a Market Perform at Cowen
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07:30 EDTWFMWhole Foods initiated with a Market Perform at Cowen
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January 21, 2015
10:01 EDTWFMOn the Fly: Analyst Upgrade Summary
Today's noteworthy upgrades include: Ashford Hospitality (AHT) upgraded to Outperform from Neutral at Credit Suisse... BAE Systems (BAESY) upgraded to Buy from Neutral at Goldman... Bazaarvoice (BV) upgraded to Outperform from Market Perform at Cowen... Becton Dickinson (BDX) upgraded to Outperform at Cowen... CVS Health (CVS) upgraded to Buy from Neutral at Goldman... Camden Property (CPT) upgraded to Outperform from Neutral at Credit Suisse... ConocoPhillips (COP) upgraded to Buy from Neutral at BofA/Merrill... Cornerstone OnDemand (CSOD) upgraded to Buy from Neutral at DA Davidson... Cree (CREE) upgraded to Overweight at Stephens... DDR Corp. (DDR) upgraded to Outperform from Neutral at Credit Suisse... EastGroup Properties (EGP) upgraded to Outperform from Neutral at Credit Suisse... Energy Transfer Partners (ETP) upgraded to Outperform from Neutral at Credit Suisse... Esperion (ESPR) upgraded at BofA/Merrill... Exxon Mobil (XOM) upgraded to Outperform from Market Perform at Wells Fargo... FXCM (FXCM) upgraded to Market Perform from Underperform at Keefe Bruyette... Fair Isaac (FICO) upgraded to Overweight from Equal Weight at Barclays... Golar LNG (GLNG) upgraded to Buy from Hold at Nordea... Gran Tierra (GTE) upgraded to Buy at Canaccord... Host Hotels (HST) upgraded to Outperform from Neutral at Credit Suisse... J.M. Smucker (SJM) upgraded to Overweight from Neutral at JPMorgan... Kilroy Realty (KRC) upgraded to Neutral from Underperform at Credit Suisse... Level 3 (LVLT) upgraded to Outperform from Market Perform at Wells Fargo... Lowe's (LOW) upgraded to Overweight from Equal Weight at Morgan Stanley... Michael Kors (KORS) upgraded to Outperform at Cowen... Netflix (NFLX) upgraded at Nomura... Regions Financial (RF) upgraded to Buy from Neutral at Guggenheim... Ruckus Wireless (RKUS) upgraded to Outperform from Market Perform at Northland... Santander Mexico (BSMX) upgraded to Neutral from Underperform at Credit Suisse... Scorpio Tankers (STNG) upgraded to Buy at Canaccord... Sprouts Farmers Markets (SFM) upgraded to Buy from Neutral at BofA/Merrill... Strategic Hotels (BEE) upgraded to Outperform from Neutral at Credit Suisse... The Medicines Co. (MDCO) upgraded to Outperform from Market Perform at Leerink... Whole Foods (WFM) upgraded at Sterne Agee... Wolseley (WOSYY) upgraded to Neutral from Underperform at Exane BNP Paribas.
09:07 EDTWFMWhole Foods upgraded at Sterne Agee
As noted earlier, Sterne Agee upgraded Whole Foods to Buy from Neutral. The firm thinks the bears on the stock are ignoring positive steps the company has taken, including the implementation of a variety of revenue drivers, as well as price cuts to spur better traffic. Target $60.
07:04 EDTWFMWhole Foods upgraded to Buy from Neutral at Sterne Agee
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