4Q99 Stocks to Watch
Published: Friday, October 01, 1999
U.S. Bancorp Piper Jaffray
Wild Oats Markets (OATS): Strong business fundamentals and solid execution at the store level are driving the top and bottom line. Recent acquisitions are another avenue for growth.
Natrol (NTOL): The company’s business fundamentals seem solid. New distribution and savvy support for products should provide for sales and earnings growth.
Carole Buyers, Tucker Cleary
Horizon Organic (HCOW): The company is creating a category with national brand recognition in a market with enormous potential. Two acquisitions and two licensing agreements, should benefit earnings performance over the next four quarters.
Whole Foods Market (WFMI): Management’s announcement regarding its Internet strategy should alleviate the recent uncertainty surrounding the story. In addition, WFMI’s retail stores continue to post solid operating results, and the company is trading near historical lows.
Gary Giblen
Banc of America/Montgomery Securities
Whole Foods Market (WFMI): The stock has lagged on concerns about WFMI’s Amrion supplements business and Internet investment levels. We expect both of these perceived issues to be in good part resolved by 4Q99. In its core operations WFMI is performing.
Wild Oats Markets (OATS): OATS is benefitting from accelerated growth through acquisitions and growing investor appreciation of the quality of its story.
Matt Patsky
Adams, Harkness & Hill
Rexall Sundown (RXSD): As the upturn in the industry becomes more visible to investors, this industry leader
should see significant appreciation.
United Natural Foods (UNFI): Coming off their difficult facility consolidation in the Northeast, we believe this well-positioned player in natural foods will see renewed strength in 4Q99.