Whole Foods' Stock Isn't Appetizing

The natural and organic grocery chain Whole Foods Market (WFM) is a fine company. It is not immune to getting overpriced, however, and that's exactly what it was prior to Wednesday evening's quarterly report. At its recent high of $65.59, Whole Foods traded for 44.9x trailing earnings.

That P/E multiple was above what Whole Foods had commanded in the fall of 2012, right before a 20% pullback from $50.90 to $40.69. Whole Foods did get as high as 55x EPS back in 2006. Buyers back then lived to regret their purchase. The stock dropped from near $40 to a split-adjusted $3.50 during the worst of the 2008-09 Great Recession....268 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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