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.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

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!