Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Whole Foods Market, Inc. (WFM): 1 Stock to Buy for February

Page 1 of 2

On Monday of this week, I introduced Fools to five companies that I was considering adding to my Roth IRA. I’ve been doing this — picking out one stock per month — for about 18 months now. My picks are averaging a 14.3% return since I started, which is outperforming the S&P 500 by more than 2 percentage points .

Read below to see which company made the cut, and at the end, I’ll offer up access to a special premium report on the business.

Whole Foods Market, Inc. (NASDAQ:WFM)

Those that didn’t make it
Of course, before telling you which company I’m buying, I wanted to let you know why the other four companies didn’t make the cut.

First, there’s Apple Inc.(NASDAQ:AAPL) . I’ve voiced long-term concerns over my holdings of Apple before. To keep it short and sweet, I’m worried about the long-term effect the loss of Steve Jobs will have on innovation at the company. Sure, there have been some big hits since his death, but he likely had a big hand in those developments. I’m waiting for a post-Jobsian product to come out before buying shares again.

Next we have Baidu.com, Inc. (NASDAQ:BIDU) — the Chinese search engine that has grown revenue by 63% per year over the past five years, and grown earnings per share by 75% per year over the same time frame; and it trades for just 24 times earnings. I still love this company, it’s just that, at this point, it accounts for over 20% of my IRA — that’s too much.

And when it comes to the other two companies I offered up — Intuitive Surgical, Inc. (NASDAQ:ISRG) and Google Inc (NASDAQ:GOOG) — I can’t find much reason not to buy them — other than the fact that I like the company I’m buying even more.

My stock to buy for February
That means the stock I’ll be buying this month is Whole Foods Market, Inc. (NASDAQ:WFM) . There are a lot of reasons to like this company, but I’ll be zeroing in on just two of them: the company’s long-term operating performance and the sustainability of the organic movement it is benefiting from.

First, let’s focus on the numbers. Since the depths of the Great Recession hit in 2009, Whole Foods has been able to increase revenue by about 13% per year. That’s not bad when you consider that between 2000 and 2010, total food sales in the U.S. grew by just 3.05% per year. In other words, Whole Foods is growing revenue over four times faster than the entire U.S. food market.

Even more pleasing for investors is the fact that the company has grown earnings per share by a whopping 44% over the same time frame. The main reason the company has been able to do this: expanding its net margins from 1.48% in 2009 to 3.98% today. In other words, the company now keeps 2.7 times more of every dollar it brings in to bank as profit. That’s an amazing improvement in just three years!

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!