Monsanto Company (MON): Why Headline Risk is Bad for This Stock

Indeed, the rich will eat organic, and so will others who buy from Whole Foods. Whole Foods is one alternative for socially responsible investors. Its yield is only 0.80% and its forward P/E is 29.85 with a PEG of 1.95. It’s beginning to expand overseas into the UK first, as well as downsizing stores that are planned for smaller markets.

Whole Foods is one of the most highly regarded social responsibility stocks around with its commitment to fair trade, employee benefits and pay, and community involvement. As for the common belief its foods cost a “Whole Paycheck”, in many categories, especially its own brands and bulk products, it costs less than supermarkets.

The final roundup

Buy Monsanto Company (NYSE:MON) only if you can’t find a better agriculture play with higher yield and a lower P/E. Buffett already found Deere for you, and no one’s marching against Deere anytime soon. Or buy Whole Foods with a clear conscience that its vendors, employees and communities are all treated fairly and that it’s the beneficiary of the trend towards healthier eating.

AnnaLisa Kraft has no position in any stocks mentioned. The Motley Fool recommends Whole Foods Market. The Motley Fool owns shares of Whole Foods Market.

The article Why Headline Risk is Bad for This Stock originally appeared on Fool.com.

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