Whole Foods Market, Inc. (WFM), Costco Wholesale Corporation (COST): The Grocery Competition You Never Saw Coming

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In the end, I just can’t fault the win-win scenario that Costco has gotten itself into. On top of that, the stock trades at a substantial discount to both Whole Foods and Fresh Market, sporting a trailing P/E of 24 versus 36 for both of the high-end brands. While I like all three of the businesses, Costco looks like it’s in a position to make a big dent in the traditional grocers’ bottom lines.

The article The Grocery Competition You Never Saw Coming originally appeared on Fool.com and is written by Andrew Marder.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool recommends Costco Wholesale (NASDAQ:COST), The Fresh Market, and Whole Foods Market and owns shares of Costco Wholesale and Whole Foods Market.

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