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Casey’s General Stores (CASY) closed the most recent trading day at $196.35, moving -1.07% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.39%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.02%.
Heading into today, shares of the convenience store chain had gained 5.12% over the past month, outpacing the Retail-Wholesale sector’s gain of 4.26% and the S&P 500’s gain of 4.82% in that time.
CASY will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.78, down 7.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.15 billion, up 42.05% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.68 per share and revenue of $12.02 billion, which would represent changes of +3.58% and +38.05%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CASY. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CASY is currently a Zacks Rank #2 (Buy).
In terms of valuation, CASY is currently trading at a Forward P/E ratio of 22.88. For comparison, its industry has an average Forward P/E of 20.56, which means CASY is trading at a premium to the group.
The Retail – Convenience Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 3, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Casey’s General Stores, Inc. (CASY): Free Stock Analysis Report
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