Market Overview

Najarian Brothers Debate On Whole Foods Market


On CNBC's Fast Money Halftime Report, Pete and Jon Najarian spoke about Whole Foods Market, Inc. (NASDAQ: WFM).

Jon Najarian believes that the company is under a lot of pressure. The food that it is buying from farmers is more expensive and competition is putting pressure on selling prices. It is not opening new stores and the market is expecting a faster growth. E. coli outbreak is also making problems for Whole Foods Market.

Pete Najarian is bullish on the stock, which is trading 40 percent lower year-to-date. He explained that it is struggling because it hasn't been able to compete with companies like Kroger Co (NYSE: KR), but it is now trading at more attractive valuation than the competition. Its price to free cash flow ratio is 13, while Kroger trades at 20. Its price to earnings is 17 and the sector trades at 22. Najarian believes that the bad news are priced in and that the stock could turn around in this quarter. He added that the company has zero debt and that it is doing everything right.

Posted-In: CNBC Fast Money Halftime Report Jon Najarian Pete NajarianMedia


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