Williams-Sonoma, Inc. (WSM), Whole Foods Market, Inc. (WFM), The Fresh Market Inc (TFM): Solving Obesity One Dish at a Time

Another plus is that Whole Foods Market, Inc. (NASDAQ:WFM) employs “mongers”: cheese, fish, produce, and meat sales force that know their wares and are helpful to customers suggesting preparations and sides, even wines.

Analysts have been dismissive of Whole Foods Market, Inc. (NASDAQ:WFM) opening stores that have smaller square footage and more affordable prices. Pollan advocates buying direct from farmers but Whole Foods makes that more convenient with its strong commitment to local sourcing. Not everyone wants to join a CSA or drive to the country. These smaller stores fill a need for their smaller communities.

The stock after its pullback from its high of $101.86 trades at a Whole Foods Market, Inc. (NASDAQ:WFM) Paycheck pricey 33.43 and a PEG of 1.65. It offers a .90% yield. Socially responsible investors need have no qualms about this company as it’s a pioneer in employee benefits and GMO (genetically modified organisms) labeling and fair trade sourcing. Corporate governance risk score is an excellent 2.

The stock has underperformed the S&P 500 this last year, up 5.70% but the share price decline has shaken out shorts and at a 2.10% interest is declining.

Alternatively, The Fresh Market Inc (NASDAQ:TFM) could nourish your portfolio. It operates 130 specialty grocery stores in 25 states. It’s smaller than Whole Foods with its 340 stores in the US, Canada, and the UK. The Fresh Market Inc (NASDAQ:TFM) stores are akin to Whole Foods and offer cooking lessons. My local store is offering a class on curry meatballs and vegetable curry, for example.

The Fresh Market Inc (NASDAQ:TFM) is down 25% over the last year following two consecutive disappointing earnings releases. Its P/E is 30.68 with a forward P/E of 21.47. The PEG is the best of these three at 1.28. However, it has the highest short interest at 10.28%. Its median price target is $48.00. Analysts expect sales growth in the mid-teens near term.

The Foolish foodie takeaway

Of all three, Williams-Sonoma, Inc. (NYSE:WSM) is my favorite. If cooking at home doesn’t pan out (pun intended) it still has 75% of the business linked to a housing recovery. The company is buying back shares and increasing the yield.

Whole Foods Market, Inc. (NASDAQ:WFM) is my preference over The Fresh Market Inc (NASDAQ:TFM) until Fresh Market manages a beat on top and bottom line. Pollan’s take on cooking at home comes at a crucial time for the US and these stocks are the preferred way to play it.

The article Solving Obesity One Dish at a Time originally appeared on Fool.com and is written by AnnaLisa Kraft.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!