Whole Foods Is a Natural Choice for Your Portfolio

Whole Foods Market (NASDAQ:WFM) — This operator of the largest chain of natural food supermarkets in the United States appears headed to new highs. Sales are expected to increase by 15% in 2012, and earnings are estimated to increase to $2.27 from $1.93 in 2011 and $1.43 in 2010.

The adoption of a new price strategy, more lower-priced offerings, and the square-footage expansion should lead to better-than-average industry growth. Furthermore, a share repurchase and a dividend increase from the current 56 cents per share are expected.

Technically WFM has been in a powerful bull channel for over a year, and while there is no reason to assume this will change, a pullback to under $68 is the preferred buy point. Then WMT should run to the top of the current bull channel at close to $80 by the end of Q1 2012.