Why Didn't I buy Earlier: WhiteWave Foods

Whitewave Foods

Pissed I didn't buy earlier this year.

 

This last week when we all lost 2% from our portfolios WhiteWave Foods (WWAV) added 6% to its share price. The stock really seems like a no brainer which I why I will be looking to make an entry position ASAP. This is the company that makes SILK soymilk, almondmilk and coconutmilk. Also the popular So Delicious foods and beverages that are certified vegan and Non-GMO Project Verified. 

WhiteWave BrandsWWAV is making the foods that people feel good about consuming. Plant based crap, organic milk, and Earthbound Farm. Earthbound Farm is the #1 organic packaged salad brand in North America, and produces and markets an extensive line of organic and fresh frozen fruits, as well as vegetables, dried fruits and snacks.

WhiteWave foods is the "in thing" for what we buy at the grocery store. Year-to-Date WWAV shares are up 29% while the Dow Jones, S&P 500, and Nasdaq have done nothing. In the last year WhiteWave shares are up 62%.  I know people, how did we miss this stock?

This company doesn't make last on the shelf forever products. More importantly they are making the organic, plant based, natural shit we all know is becoming the new normal. They are the future.

Thanks to the Kraft (KRFT) news last week WhiteWave is being hyped up to be the next takeover candidate.  WWAV shiares hit a new 52-week high on Friday and closed the day at $45.23.  WhiteWave shares ran up on that news and the analysts covering the stock can't keep up with the valuation. Latest analysts estimates:

Mar-24-15 Reiterated Oppenheimer Outperform $40 → $50
Mar-24-15 Initiated Argus Buy $49
Feb-25-15 Reiterated Imperial Capital Outperform $40 → $46

These are one year target prices that were set in the last 30 days and one was already hit.  The stock could be ready to pullback a bit after Kraft-Heinz merger. The stock has had a huge run-up this month and I believe will cool down before its May 6th earnings call. Thus there is time to get in on this stock before they report earnings.  

In February WhiteWave reported 27 cents earnings per share (EPS) for Q4, meeting the consensus estimate of 27 cents. The company had revenue of $911.00 million for the quarter, compared to the consensus estimate of $898.15 million. During the same quarter in the previous year, the company posted 22 cents earnings per share. The company’s revenue for the quarter was up 34.2% on a year-over-year basis. Analysts expect that WhiteWave Foods will post $1.11 EPS for the current fiscal year.

Expectations are high for WWAV next earnings call but short interest is only 2%. The stock looks like the little engine that could.  

wwav

WhiteWave Foods currently has an average rating of Buy and an average target price of $41.67.  We well past that point and I expect analysts will not look stupid and start raising targets into the $50 range in the coming weeks.  

MASTERY Bottom Line (Flying Kick Style)

If we get a chance to buy WWAV on a pullback, do it.