If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Casey's General Stores (CASY) . This company, which is in the Zacks Retail - Convenience Stores industry, shows potential for another earnings beat.When looking at the last two reports, this convenience store chain has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 22.02%, on ave ...

Have you been paying attention to shares of Casey's General Stores (CASY) ? Shares have been on the move with the stock up 6.6% over the past month. The stock hit a new 52-week high of $401.17 in the previous session. Casey's General Stores has gained 45.8% since the start of the year compared to the 21.1% move for the Zacks Retail-Wholesale sector and the 45.8% return for the Zacks Retail - Convenience Stores industry. What's Driving the Outperformance? The stock has an impressive record of positive earnin ...

Here's why I plan to buy more shares of Casey's General Stores for my daughter, even after her investment has nearly doubled in less than two years.Buying more of a winning stock is one of the hardest things to do in investing. This notion is especially true when the stock's valuation has risen alongside its price.However, investors should avoid anchoring to the original purchase price and valuation of their winning investment. Saying we shouldn't add to a winning stock until it hits a "reasonable" valuatio ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...

Casey's General Stores Inc. (CASY) continues to distinguish itself in the convenience store sector through robust operational strategies that bolster its market position and financial performance. A resilient business operating model, stellar omnichannel capabilities, expanded customer outreach and exclusive private-label offerings strengthen Casey's competitive position. Through a strategic blend of organic growth and targeted acquisitions, Casey's is aggressively expanding its footprint. Decoding Casey's ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights Casey's General Stores (CASY) as a strong value stock based on its financial metrics and Zacks Rank [2][3][6] Group 1: Value Investing Strategy - Value investing is a popular strategy that aims to identify undervalued companies using fundamental analysis and established metrics [2] - Zacks has developed a Style Scores system to categorize stocks, with a focus on the "Value" category for value investors [3] Group 2: Casey's General Stores (CASY) Metrics - CASY currently holds a Zacks Rank of 2 (Buy) and an A grade in the Value category, indicating strong potential as a value stock [3] - The P/B ratio for CASY is 4.38, which is attractive compared to the industry average of 4.58, with a historical range between 3.42 and 4.80 over the past year [4] - CASY's P/CF ratio stands at 15.90, which is lower than the industry's average of 16.31, with a historical range from 12.32 to 17.09 [5] - These metrics suggest that CASY is likely undervalued, making it an appealing investment opportunity [6]

Core Insights - The podcast discusses three companies in the convenience store and gas station industry: Alimentation Couche-Tard, Casey's General Stores, and Murphy USA, highlighting their unique business strategies and market performance. Alimentation Couche-Tard - Couche-Tard operates nearly 17,000 stores globally, primarily under the Circle K brand, and has successfully integrated over 65 acquisitions since 2004 [4][6] - The company has a market cap of approximately CAD 72 billion and continues to pursue growth through acquisitions despite recent setbacks [6][7] - Couche-Tard made a CAD 42 billion offer for Seven & i Holdings, the parent company of 7-Eleven, but faces challenges due to regulatory concerns and the need for a higher offer [7][8] - The company’s sales growth has been uneven, largely due to volatile fuel prices, but it maintains steady profitability metrics with gross margins around 17-18% and operating margins of 5-6% [8][9] - Nicotine products account for nearly 40% of merchandise sales, and shifting consumer preferences towards healthier options and electric vehicles may impact future sales [9][10] Casey's General Stores - Casey's focuses on underserved areas, with 72% of its stores located in communities with fewer than 20,000 people, which is seen as a strategic advantage [16][17] - The company has outperformed the S&P 500 over the past decade, with a five-year operating profit growth of nearly 17% [19][20] - Casey's has a gross margin of close to 60% on food sales, while fuel margins are around 10%, indicating a strong focus on in-store sales [21] - The company trades at approximately 28 times earnings, and valuation metrics are at the high end of their historical range, suggesting a cautious approach to investment [22] Murphy USA - Murphy USA has seen significant stock performance, with an increase of over 820% in the past decade, and is known for its aggressive stock buyback strategy [23] - The company emphasizes strong capital allocation, focusing on share buybacks, dividends, and strategic acquisitions [24][25] - Murphy USA targets underserved communities, similar to Casey's, and aims to serve a customer base that is increasingly living paycheck to paycheck [26][27]

It is impossible to eliminate stock market risk. Risk and volatility are wily beasts and uncontainable, but they can be mitigated. One method is to use low-beta stocks, which tend to be less volatile than the S&P 500 NYSEARCA: SPY. However, there are better reasons to invest than having a low beta, and it takes more than a low beta stock to mitigate volatility. Being less volatile than the S&P does not equate to riskfree, so quality still counts. Quality, which attracts dedicated buy-and-hold investors, is ...

Core Insights - Casey's General Stores, Inc. (CASY) reported first-quarter fiscal 2025 results with total revenues of $4,097.7 million, which missed the Zacks Consensus Estimate of $4,112 million, but increased by 5.9% year over year. Earnings per share were $4.83, surpassing the estimate of $4.54 and reflecting a 6.9% increase from $4.52 in the prior-year period [1][2]. Revenue Performance - Total inside sales increased by 7.6% year over year to $1.47 billion, driven by strong performances in prepared food and dispensed beverage categories. Inside same-store sales rose by 2.3%, compared to a 5.4% increase in the previous year [3]. - Prepared Food & Dispensed Beverage sales rose by 8.7% year over year to $405.1 million, while same-store sales increased by 4.4% [7]. - Grocery & General Merchandise sales increased by 7.2% to $1.07 billion, with same-store sales rising by 1.6% [8]. - Fuel sales improved by 5.3% year over year to $2.56 billion, with fuel gallons sold jumping by 8.2% to 772.5 million [9]. Margin and Profitability - Gross profit rose by 8.8% year over year to $955.3 million, with gross margin expanding by 60 basis points to 23.3% [4]. - Inside gross profit increased by 10.4% year over year to $614.3 million, and inside margin increased by 110 basis points to 41.7% [4]. - EBITDA increased by 9.1% year over year to $345.8 million, with EBITDA margin expanding by 20 basis points to 8.4% [5]. Expenses and Financial Position - Operating expenses rose by 8.7% to $609.5 million, which was lower than the estimated increase of 10.2% [5]. - As of the end of the quarter, the company had cash and cash equivalents of $305 million, long-term debt of $1.40 billion, and shareholders' equity of $3.16 billion [10]. Future Guidance - For fiscal 2025, the company expects inside same-store sales to increase by 3-5% and anticipates an inside margin of 41%. It forecasts same-store fuel gallons sold to remain flat, with EBITDA growth expected to be at least 8% [12].

Financial Data and Key Metrics Changes - Diluted EPS increased by 7% to $4.83 per share, with net income rising by 6% to $180 million and EBITDA growing by 9% to $346 million compared to the prior year [6][15] - Total revenue for the quarter reached $4.1 billion, a 5.9% increase from the previous year, driven by higher inside sales and fuel gallons sold [9][10] - Gross profit was $955 million, an increase of 8.8% from the prior year, with inside gross profit margin at 41.7%, up 110 basis points [12][15] Business Line Data and Key Metrics Changes - Inside same-store sales rose by 2.3%, with prepared food and dispensed beverage sales up 4.4% and grocery and general merchandise sales up 1.6% [7][8][10] - Prepared food and dispensed beverage sales increased by 8.7% to $405 million, while grocery and general merchandise sales rose by 7.2% to $1.07 billion [10][12] - Fuel same-store gallons sold increased by 0.7%, with a fuel margin of $0.407 per gallon [8][13] Market Data and Key Metrics Changes - The company outperformed its geographic region in fuel volume, with the Mid-Continent region down approximately 5% in the quarter [8] - Same-store sales growth in grocery and general merchandise was impacted by a strong prior year quarter and lottery-related traffic anomalies [36][37] Company Strategy and Development Direction - The company is focused on expanding its store base, raising its three-year store growth target to approximately 500 stores, accelerated by the Fikes acquisition [16][20] - Enhancements in operational efficiency are being pursued, with a continuous improvement team achieving reductions in same-store labor hours for nine consecutive quarters [22] - The company aims to balance fuel gallons with gross profit dollars while maintaining a strong value proposition in prepared foods [23] Management's Comments on Operating Environment and Future Outlook - Management noted that the consumer base remains stable, with higher-income consumers showing no significant changes in purchasing behavior, while lower-income consumers are slightly adjusting their basket sizes [24][25] - The company expects continued inflation in cheese costs but is managing overall profitability effectively [26][27] - The outlook for the second quarter remains positive, with expectations for operating expenses to be within annual ranges despite one-time costs related to the Fikes transaction [19] Other Important Information - The Fikes acquisition has a gross purchase price of $1.145 billion, with expected synergies and a focus on integrating the acquired stores into the Casey's operational framework [17][18] - The company generated $181 million in free cash flow for the quarter, compared to $160 million in the prior year [15] Q&A Session Summary Question: Consumer health in light of recent trends - Management indicated that higher-income consumers are maintaining purchasing habits, while lower-income consumers are buying fewer items per visit [24][25] Question: Gross margin concerns regarding cheese costs - Management confirmed that about 25% of cheese requirements are hedged, and they are managing overall profitability rather than focusing solely on prepared food margins [26][27] Question: Continuous improvement initiatives - Management highlighted recent initiatives like digital production planning and inventory organization that have improved efficiency and reduced waste [30][32] Question: Prepared food performance across different markets - Management noted no significant differences in prepared food performance across geographic markets, with strong growth in lunch offerings [33] Question: Inside same-store sales growth - Management attributed softer grocery sales to cycling over a strong prior year and lottery-related traffic anomalies [35][36] Question: Private label performance - Management reported steady performance in private label sales, contributing positively to grocery margins [40][41] Question: Future M&A activity - Management stated they are always looking for acquisition opportunities but will be cautious about taking on additional leverage [42][43] Question: CapEx for Fikes acquisition - Management anticipates approximately $145 million in CapEx for renovations and retrofitting Fikes stores [44] Question: Fuel supply chain updates - Management confirmed progress in upstream fuel purchasing capabilities and the benefits of acquiring expertise through the Fikes transaction [57][58] Question: Cheese usage in prepared foods - Management indicated that cheese is the largest commodity used in prepared foods, with over 40 million pounds consumed in the last fiscal year [59] Question: Impact of Department of Labor overtime rule - Management expects minimal impact from the upcoming overtime rule, as most affected team members are already above the threshold [61]