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Is Casey’s General Stores (CASY) a Great Value Stock Right Now?


The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system’s “Value” category. Stocks with both “A” grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Casey’s General Stores (CASY). CASY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 25.22, while its industry has an average P/E of 25.66. Over the past year, CASY’s Forward P/E has been as high as 28.35 and as low as 19.72, with a median of 24.46.

Investors should also note that CASY holds a PEG ratio of 2.83. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company’s expected EPS growth rate. CASY’s industry has an average PEG of 2.88 right now. CASY’s PEG has been as high as 3.28 and as low as 1.57, with a median of 2.53, all within the past year.

Finally, we should also recognize that CASY has a P/CF ratio of 8.13. This data point considers a firm’s operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock’s P/CF looks attractive against its industry’s average P/CF of 9.72. Over the past year, CASY’s P/CF has been as high as 13.25 and as low as 6.72, with a median of 7.75.

These are only a few of the key metrics included in Casey’s General Stores’s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CASY looks like an impressive value stock at the moment.

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