After 50+ years, Casey’s General Stores (CASY) continues to be there for its customers—and investors. Shares shot up 16% on their reported Q4 earnings-per-share of $2.34, beating analysts’ expectations of $1.70. Quarterly revenue was $3.60 billion, up 8.2% year-over-year and above estimates of $3.47 billion. The company has a market capitalization of $13.94 billion and a P/E ratio of 29.93. Since the late ‘80s, CASY shares have returned 12.3% on average, compared to 9.7% annually for the S&P. Since 1995, the company’s EPS has risen by 11.8% each year, more than the broader index at 6%. CASY stock has risen more than 400% over the last decade, showing steady growth. The question is will it continue?
What To Know About Casey's General Stores
Founded in 1968 in Boone, Iowa, Casey’s General Stores now have more than 2,500 locations, serving mostly rural communities in 17 Midwestern states. The focus is on smaller towns—78% of its stores are in communities with a population of 20,000 or less, and half are in small towns with 5,000 or less. While Casey’s sells gas, its prepared foods like homemade pizza and fountain drinks lead the charge, providing the company with a 60% gross profit margin. Same-store sales in this area were up 7% YoY in the fourth quarter. By focusing on local communities and being a go-to place for pizza and other prepared foods, while also selling gas, Casey’s stands out from its competitors.
Why The Industry Is Taking Notice
On this recent earnings report, multiple analysts have increased their price targets for CASY. The average rating is now a Moderate Buy with a consensus price target of $380.11. Three analysts rate Casey’s as a “hold,” while seven see it as a “buy” and one recommends it as a “strong buy.” Wells Fargo boosted its price target from $340 to $415, keeping its “overweight” rating and indicating the potential for future growth. Casey’s is currently trading at $370.97.
Neither Julie Stoller nor Stocks.News have positions in this company.
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Julie Stoller
Contributing Writer
As a professional writer since 2012, Julie Stoller has covered many industries, from healthcare and technology to consumer products and industrials. She has written about IPOs, spinoffs, ETFs, stock splits, commodities, legislative actions impacting investors, and macroeconomic issues. While keeping up with the latest meme stocks and trends, Julie's special interests are discovering ...