In 2017, Amazon bought Whole Foods for nearly $14 billion in anticipation of turning shoppers into Prime members, along with gaining entry into the $860 billion U.S. grocery industry.
Now the e-commerce giant is struggling to convince its Prime members to shop at Whole Foods, even after offering an extra discount on sale items exclusively for Prime shoppers along with splashy discounts on items like salmon and avocados.
But despite these steps, only 18% of Prime members shop at Whole Foods and 70% Prime members never step into a Whole Foods.
The major reason for this is Whole Foods’ high prices, as cheap natural foods have now gone mainstream and are available at much lower price at rival supermarkets.
Taking the cue from Whole Foods, other grocers like Kroger (KR), Albertsons and Aldi have also expanded their organic aisle but when it comes to price they are generally cheaper than Whole Foods. Kroger's Simple Truth grew 15% last year and is now a $2.3 billion brand. While Aldi, which already has more than 1,800 stores across U.S., plans to expand its fresh food selection by 40%.
Prices of Whole Foods are also ticking back up as analysts report that Whole Foods raised prices from 10 cents to several dollars on hundreds of products and price of a basket of 60 items have gone up 15% than traditional grocery stores in March.
As such, Amazon is likely to lower prices again on hundreds of items at Whole Foods and will double the number of weekly deals for Prime members. Mostly focused on produce, the cuts will be effective starting Wednesday.
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where AMZN advanced for three days, in of 334 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on March 19, 2024. You may want to consider a long position or call options on AMZN as a result. In of 77 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 284 cases where AMZN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for AMZN moved out of overbought territory on March 04, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Moving Average Convergence Divergence Histogram (MACD) for AMZN turned negative on March 05, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMZN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. AMZN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.268) is normal, around the industry mean (17.720). P/E Ratio (62.117) is within average values for comparable stocks, (71.108). Projected Growth (PEG Ratio) (2.436) is also within normal values, averaging (3.234). Dividend Yield (0.000) settles around the average of (0.030) among similar stocks. P/S Ratio (3.288) is also within normal values, averaging (4.178).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of on-line retail shopping services
Industry InternetRetail