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Is Casey’s General Stores (CASY) Stock Undervalued Right Now?

Zacks

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the “Value” category. When paired with a high Zacks Rank, “A” grades in the Value category are among the strongest value stocks on the market today.

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 25.06, while its industry has an average P/E of 25.62. CASY’s Forward P/E has been as high as 27.92 and as low as 19.72, with a median of 24.73, all within the past year.


We also note that CASY holds a PEG ratio of 2.61. 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 PEG compares to its industry’s average PEG of 2.67. Within the past year, CASY’s PEG has been as high as 3.28 and as low as 1.57, with a median of 2.69.

Finally, investors should note that CASY has a P/CF ratio of 8.20. This metric focuses on a firm’s operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CASY’s current P/CF looks attractive when compared to its industry’s average P/CF of 9.42. Over the past 52 weeks, CASY’s P/CF has been as high as 8.69 and as low as 6.72, with a median of 7.75.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Casey’s General Stores is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CASY feels like a great value stock at the moment.


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