Bank of New York Mellon Corp reduced its stake in shares of Casey’s General Stores, Inc. (NASDAQ:CASY – Free Report) by 11.2% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 418,218 shares of the company’s stock after selling 52,954 shares during the period. Bank of New York Mellon Corp owned about 1.12% of Casey’s General Stores worth $236,427,000 at the end of the most recent quarter. Get Casey' ...

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In the current market session, Casey's General Stores Inc. (NASDAQ:CASY) stock price is at $618.61, after a 1.09% drop. However, over the past month, the company's stock increased by 8.76%, and in the past year, by 50.42%. Shareholders might be interested in knowing whether the stock is overvalued, even if the company is not performing up to par in the current session. Casey's General Stores P/E Compared to CompetitorsThe P/E ratio is used by long-term shareholders to assess the company's market performance ...

Core Insights - The U.S. stock market starts the new year with confidence, supported by easing inflation, a steady economy, and expectations of lower interest rates over time, alongside the influence of artificial intelligence [1] Economic Environment - Recent data shows mixed but encouraging signs, with factory activity performing better than expected while housing shows signs of cooling; earnings season is ramping up, focusing on company-level performance [2] - Trade headlines and tariff threats have introduced short-term pressures, but markets typically overlook near-term volatility to focus on future prospects [2] Investment Strategy - Relative price strength is crucial; stocks that are already outperforming the broader market tend to continue leading, making them attractive for investors [3] - Companies such as Micron Technology (MU), Hilltop Holdings (HTH), Casey's General Stores (CASY), Agnico Eagle Mines (AEM), and Dollar General (DG) are recommended for consideration due to their strong performance [3] Stock Selection Criteria - Investors should evaluate stocks based on earnings growth and valuation multiples, while also considering their performance relative to industry peers or benchmarks [4] - Underperforming stocks should be avoided, while those showing strong relative price performance are more likely to yield significant returns [5] Performance Metrics - Stocks that have outperformed the S&P 500 over the past 1, 4, and 12 weeks, along with positive earnings estimate revisions for the current quarter, indicate potential for growth [6][9] - The screening parameters include relative price changes over different time frames and positive earnings estimate revisions, focusing on stocks with a Zacks Rank of 1 (Strong Buy) [8][10] Company Highlights - **Micron Technology (MU)**: Expected earnings growth of 297.5% for fiscal 2026, with shares gaining 243% in a year and a market cap over $400 billion [11][12] - **Hilltop Holdings (HTH)**: Projected EPS growth of 11.3% year-over-year for 2026, with shares up 24% in a year [12][13] - **Casey's General Stores (CASY)**: Anticipated EPS growth of 18.8% for fiscal 2026, with shares increasing by 64% in a year [14][15] - **Agnico Eagle Mines (AEM)**: Market cap nearly $100 billion, with shares more than doubling in a year and a projected earnings growth of 9.1% for 2026 [16][17] - **Dollar General (DG)**: Market cap nearly $33 billion, with shares gaining 117% in a year and a projected earnings growth of 5.4% for 2026 [17][18]

Core Viewpoint - Investors are focusing on the convenience retail sector due to changing demand and competitive pressures, with BofA Securities initiating coverage on Murphy USA Inc. and Casey's General Stores, Inc. [1] Group 1: Casey's General Stores - Analyst Lisa K. Lewandowski initiated coverage with a Buy rating and a price target of $700, based on a 2027 EV-to-EBITDA multiple of 15.9 times, which is above the one-year average and most peers [2] - The premium valuation is justified by Casey's higher-margin foodservice mix and expected consistent EBITDA growth in the range of 8% to 10% over the medium term [3] - Fuel sales accounted for approximately 61% of fiscal 2025 revenue, but 70% of inside transactions exclude fuel purchases, indicating a shift towards food destinations [4] - Casey's is the third-largest convenience store operator in the U.S. and ranks among the largest pizza chains and liquor license holders [4] - The rural footprint is seen as a competitive advantage in underserved food markets, with expectations for foodservice margins to expand as CEFCO locations convert to Casey's formats starting in 2026 [5] Group 2: Murphy USA - Coverage of Murphy USA was reinstated with an Underperform rating and a price target of $405, using a 2027 EV-to-EBITDA multiple of 8.6 times, which is below the long-term average [6] - Heavy exposure to fuel and nicotine sales is a constraint, with low gas prices and muted fuel volatility limiting earnings leverage [7] - Declining cigarette volumes and a relatively small foodservice business further weigh on performance, especially amid pressure on lower-income consumers [7] - Positive aspects include lean operations, a value-focused pricing strategy, and Walmart-adjacent locations, which provide some long-term support [8]

Core Viewpoint - Investors are focusing on the convenience retail sector due to changing demand and competitive pressures, with BofA Securities initiating coverage on Murphy USA Inc. and Casey's General Stores, Inc. [1] Group 1: Casey's General Stores - Analyst Lisa K. Lewandowski initiated coverage with a Buy rating and a price target of $700, based on a 2027 EV-to-EBITDA multiple of 15.9 times, which is above the one-year average and most peers [2] - The premium valuation is justified by Casey's higher-margin foodservice mix and expected consistent EBITDA growth in the range of 8% to 10% over the medium term [3] - Fuel sales accounted for approximately 61% of fiscal 2025 revenue, but 70% of inside transactions exclude fuel purchases, indicating a shift towards food destinations [4] - Casey's is the third-largest convenience store operator in the U.S. and ranks among the largest pizza chains and liquor license holders [4] - The rural footprint is seen as a competitive advantage in underserved food markets, with expectations for foodservice margins to expand as CEFCO locations convert to Casey's formats starting in 2026 [5] Group 2: Murphy USA - Coverage of Murphy USA was reinstated with an Underperform rating and a price target of $405, using a 2027 EV-to-EBITDA multiple of 8.6 times, which is below the long-term average [6] - Heavy exposure to fuel and nicotine sales is a constraint, with low gas prices and muted fuel volatility limiting earnings leverage [7] - Declining cigarette volumes and a relatively small foodservice business further weigh on performance, especially amid pressure on lower-income consumers [7] - Positive aspects include lean operations, a value-focused pricing strategy, and Walmart-adjacent locations, which provide some long-term support [8]

Core Insights - Casey's General Stores (CASY) shows potential as a strong investment due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][9] Earnings Estimate Revisions - The current quarter's earnings estimate is $2.93 per share, reflecting a year-over-year increase of +25.8% [5] - Over the past 30 days, the Zacks Consensus Estimate for Casey's has risen by 8.32%, with two estimates moving higher and no negative revisions [5] - For the full year, the expected earnings are $17.28 per share, representing a year-over-year change of +18.0%, with a 5.56% increase in consensus estimates due to positive revisions [6][7] Analyst Sentiment - There is strong agreement among analysts in raising earnings estimates for Casey's, contributing to a favorable outlook for the stock [3] - The Zacks Rank for Casey's is 2 (Buy), indicating a positive sentiment based on the trend of earnings estimate revisions [8] Stock Performance - The stock has gained 7.6% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [9]

Core Insights - Casey's General Stores reported strong year-over-year growth in its second-quarter fiscal 2026 results, with earnings per share of $5.53, surpassing estimates, but total revenues of $4,506.1 million fell short of expectations [2][3]. Financial Performance - The company achieved a 14% increase in earnings per share from $4.85 in the prior-year quarter [3]. - Total revenues increased by 14.2% from $3,946.8 million in the year-ago period, despite missing the Zacks Consensus Estimate of $4,553 million [3]. - Inside sales rose 13% year over year to $1.66 billion, with same-store sales increasing by 3.3% [4]. Margins and Expenses - Gross profit increased to $1.12 billion, up 17% year over year, with gross margin expanding by 60 basis points to 24.9% [5]. - EBITDA rose 17.5% year over year to $410.1 million, with an EBITDA margin of 9.1%, reflecting a 30 basis point increase [6]. - Operating expenses increased by 16.7% to $711.6 million, primarily due to the operation of 236 additional stores [7]. Segment Performance - Prepared Food & Dispensed Beverage sales grew 12% year over year to $467.8 million, with same-store sales increasing by 4.8% [8]. - Grocery & General Merchandise sales rose 13.4% to $1.19 billion, with same-store sales advancing by 2.7% [9]. - Fuel sales increased by 11.3% year over year to $2.69 billion, with fuel gallons sold jumping 16.8% to 906.7 million [10]. Financial Snapshot - As of October 31, 2025, Casey's operated 2,921 stores, with cash and cash equivalents of $492 million and long-term debt of $2.35 billion [11]. - The company declared a quarterly dividend of 57 cents per share, continuing its track record of dividend payments [12]. Outlook - For fiscal 2026, management expects EBITDA growth of 15-17% and total operating expenses to increase by 8-10% [13]. - Inside same-store sales are anticipated to grow by 3-4%, with an expected inside margin of 41-42% [14]. - The consensus estimate has shifted upward by 8.32% in the past month, indicating positive investor sentiment [15].

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the short term [2] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score identifies attractive stocks using ratios like P/E, PEG, and Price/Sales, focusing on stocks that are undervalued [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook, focusing on earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends, using metrics like price changes and earnings estimate revisions to identify optimal entry points [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive rating to identify stocks with the best overall potential [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.9% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with a 3 (Hold) rank should also have A or B Scores to ensure potential upside [10] Company Spotlight: Casey's General Stores - Casey's General Stores operates approximately 2,921 convenience stores across 19 states, primarily in Iowa, Missouri, and Illinois [12] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong investment potential [12] - Forecasts suggest an 18% year-over-year earnings growth for the current fiscal year, with upward revisions in earnings estimates [13]

Core Insights - Casey's General Stores, Inc. (NASDAQ:CASY) is recognized as one of the best dividend stocks to invest in for January [1] - Wells Fargo has added Casey's to its Q1 2026 Tactical Ideas list, indicating a favorable outlook for the company [2] - The company is expected to exceed near-term EPS expectations, supported by its growth strategy and fiscal stimulus [3] Financial Performance - Goldman Sachs raised its price target for Casey's from $490 to $530, citing strong Q2 EPS performance that surpassed both its estimates and consensus [4] - The positive results were attributed to better-than-expected fuel margins and effective execution on inside margins [4] Company Overview - Casey's operates approximately 2,900 convenience stores across 19 states, offering self-service fuel, grocery items, and freshly prepared food options [5]