We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Whole Foods (WFM) Will No Longer be Part of Nasdaq-100
Read MoreHide Full Article
As a result of the annual re-ranking of the NASDAQ-100 index, Whole Foods Market, Inc. will cease to be part of the same. The change will be effective from Dec 19, 2016. The rebalancing is carried out every year in December. During the course, NASDAQ evaluates its components, compares them with those not included in the index, re-ranks all companies deemed fit and makes necessary adjustments.
Other companies that are slated to exit the index as a part of this year’s re-balancing are NetApp, Inc. (NTAP - Free Report) , Stericycle, Inc. (SRCL - Free Report) and Bed Bath & Beyond Inc. . In place of these exiting stocks Cintas Corporation (CTAS - Free Report) , Hasbro, Inc. (HAS - Free Report) , Hologic, Inc. (HOLX - Free Report) , and KLA-Tencor Corporation (KLAC - Free Report) will be added to the pool.
Coming back to Whole Foods, the stock has been under pressure due to stiff competition, food price deflation, an aggressive promotional environment and waning store traffic. We noticed that the shares have declined 4.3% year to date, when the Zacks categorized Retail-Supermarkets industry has increased 9%. Further, the stock has also underperformed the NASDAQ-100 index that recorded a growth of 6.6% over the same period.
The company has been grappling with waning comparable-store sales (comps) performance since the past five quarters. Comps declined 2.6% in the fourth quarter of fiscal 2016. Comps had fallen 2.6%, 3% and 1.8% in the third, second and first quarters of fiscal 2016, respectively, and 0.2% in the final quarter of fiscal 2015. During the first five weeks of the first quarter of fiscal 2017, comps dropped 1.6%.
Nevertheless, Whole Foods has been revamping its pricing strategy and concentrating on value offerings. It has launched a new store concept, "365 by Whole Foods Market" to target millennials and stave off competition that has been hurting its performance.
We note the company is leaving no stone unturned to reach its target customers, whether through national marketing and branding campaigns, home delivery services, store expansion or the adoption of a digital route.
Whole Foods currently carries a Zacks Rank #3 (Hold).
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Whole Foods (WFM) Will No Longer be Part of Nasdaq-100
As a result of the annual re-ranking of the NASDAQ-100 index, Whole Foods Market, Inc. will cease to be part of the same. The change will be effective from Dec 19, 2016. The rebalancing is carried out every year in December. During the course, NASDAQ evaluates its components, compares them with those not included in the index, re-ranks all companies deemed fit and makes necessary adjustments.
Other companies that are slated to exit the index as a part of this year’s re-balancing are NetApp, Inc. (NTAP - Free Report) , Stericycle, Inc. (SRCL - Free Report) and Bed Bath & Beyond Inc. . In place of these exiting stocks Cintas Corporation (CTAS - Free Report) , Hasbro, Inc. (HAS - Free Report) , Hologic, Inc. (HOLX - Free Report) , and KLA-Tencor Corporation (KLAC - Free Report) will be added to the pool.
Coming back to Whole Foods, the stock has been under pressure due to stiff competition, food price deflation, an aggressive promotional environment and waning store traffic. We noticed that the shares have declined 4.3% year to date, when the Zacks categorized Retail-Supermarkets industry has increased 9%. Further, the stock has also underperformed the NASDAQ-100 index that recorded a growth of 6.6% over the same period.
The company has been grappling with waning comparable-store sales (comps) performance since the past five quarters. Comps declined 2.6% in the fourth quarter of fiscal 2016. Comps had fallen 2.6%, 3% and 1.8% in the third, second and first quarters of fiscal 2016, respectively, and 0.2% in the final quarter of fiscal 2015. During the first five weeks of the first quarter of fiscal 2017, comps dropped 1.6%.
Nevertheless, Whole Foods has been revamping its pricing strategy and concentrating on value offerings. It has launched a new store concept, "365 by Whole Foods Market" to target millennials and stave off competition that has been hurting its performance.
We note the company is leaving no stone unturned to reach its target customers, whether through national marketing and branding campaigns, home delivery services, store expansion or the adoption of a digital route.
Whole Foods currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>