Core Insights - The U.S. stock indices showed positive performance on December 11, 2025, with the S&P 500 and Dow Jones Industrial Average reaching new closing records following a quarter-point interest rate cut by the U.S. central bank on December 10, leading investors to favor equities sensitive to rate cuts over tech stocks [1][2]. Investment Recommendations - Investors are advised to consider low-leverage stocks as safe-haven securities amid concerns over overvalued AI-centric tech stocks. Recommended companies include Casey's General Stores (CASY), Hamilton Insurance Group (HG), Northrip Bancorp (NRIM), REV Group (REVG), and Engie (ENGIY), which exhibit low leverage and stability during market volatility [2][10]. Understanding Leverage - Leverage involves borrowing capital for operational and business expansion, typically through debt financing. While debt can facilitate growth, excessive reliance on it poses risks, especially if returns do not exceed interest costs. Therefore, selecting companies with low debt is crucial for minimizing investment risks [4][5][6]. Debt-to-Equity Ratio Analysis - The debt-to-equity ratio is a key metric for assessing a company's financial risk, with lower ratios indicating better solvency. As the third-quarter 2025 earnings season concludes, investors should focus on stocks with solid earnings growth and low debt-to-equity ratios to ensure steady returns [7][9]. Stock Selection Criteria - A comprehensive screening process for selecting low-leverage stocks includes criteria such as: - Debt/Equity ratio lower than the industry median - Current price of at least $10 - Average 20-day trading volume of 50,000 or more - Positive earnings growth compared to the industry median - VGM Score of A or B, combined with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [11][12][13]. Company Performance Highlights - **Casey's General Stores (CASY)**: Reported a 3.3% increase in same-store sales and a 14% rise in earnings for Q2 fiscal 2026. The Zacks Consensus Estimate predicts a 9.6% revenue increase and an 11.8% earnings improvement for fiscal 2026, with a Zacks Rank of 2 [14][15]. - **Hamilton Insurance Group (HG)**: Achieved a 16.5% increase in net premiums and improved operating earnings to $1.20 per share from $0.16 in Q3 2024. The Zacks Consensus Estimate forecasts a 20.9% revenue increase and an 8.5% earnings rise for 2025, holding a Zacks Rank of 1 [16][17]. - **Northrip Bancorp (NRIM)**: Completed a $60 million private placement to support growth initiatives. The Zacks Consensus Estimate anticipates a 29.6% revenue increase and a 51.5% earnings rise for 2025, with a Zacks Rank of 1 [18][19]. - **REV Group (REVG)**: Reported a 13% increase in net sales and a 62.7% rise in adjusted EPS for Q4 fiscal 2025. The Zacks Consensus Estimate suggests a 7.3% revenue increase and a 30.4% earnings rise for fiscal 2026, with a Zacks Rank of 2 [20][21]. - **Engie (ENGIY)**: Announced the financial closure of its first offshore wind farm in Poland, with a total planned capacity of up to 390 MW. The Zacks Consensus Estimate indicates a 31.8% earnings improvement for 2025, holding a Zacks Rank of 2 [22][23].

This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. 3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry. Tariffs, lingering inflation concerns and overall economic and geopolitical uncertainty battered retailers this year. For instance, 79% of consumers in a recent survey by Upside said they’ve changed their shopping habits this year due to tariffs. And while c-stores ...

Core Insights - Murphy USA has launched new business fuel cards aimed at smaller or newer businesses, providing easier qualification and lower fees compared to traditional fleet cards [3][7]. Group 1: Product Offering - The new Murphy USA and QuickChek Business Fuel cards feature advanced reporting, instant fraud alerts, and real-time spending controls [7]. - Users of these cards will receive a 20-cent-per-gallon fuel discount for the first year [7]. Group 2: Market Positioning - The introduction of these fleet cards is part of a broader trend among convenience retailers to enhance payment options for professional drivers, with competitors like EG America and BP also expanding their offerings [5]. - The cards are designed to be more accessible for businesses that may struggle with traditional fleet card qualifications, thus potentially giving Murphy an edge in the competitive fuel market [3][4]. Group 3: Customer Incentives - QuickChek card holders can earn 1,000 points and a 10% discount on select in-store merchandise by enrolling in QuickChek Rewards [4]. - Existing fleet card users can reapply to benefit from the new offerings, indicating a strategy to retain and attract customers [4].

Core Viewpoint - Casey's General Stores, Inc. is a significant player in the convenience store industry, with a strong market presence and growth potential despite its premium valuation [1][3][5]. Company Overview - Casey's General Stores operates over 2,000 locations across the Midwest and Southern regions of the United States, offering a variety of products including fuel, groceries, and prepared foods [1]. - The company has a market capitalization of approximately $19.82 billion, indicating its substantial size in the market [5]. Stock Performance - As of late 2025, Casey's stock price is approximately $533.18, reflecting a decrease of about 5.34% or $30.06 from previous levels [4]. - The stock has fluctuated between a low of $529.84 and a high of $569.39 during the trading day, with a yearly high of $573.76 and a low of $372.09 [4]. Analyst Insights - Goldman Sachs set a price target of $530 for Casey's stock, indicating that it is trading near its expected value, with the stock currently at $533.76, about 0.70% higher than the target [2][6]. - The stock is trading at approximately 33 times its current-year earnings, suggesting a premium valuation, but this is supported by the company's strong market presence and growth potential [3][6]. Investor Interest - The trading volume for the day is 581,942 shares, indicating active investor interest in Casey's stock [5][6].

Core Insights - Casey's General Stores, Inc. reported second-quarter earnings of $5.53 per share, exceeding the analyst consensus of $5.18, with revenue of $4.51 billion, slightly above the $4.5 billion estimate, and a net income increase of 14% year-over-year to $206.3 million [1][2] Financial Performance - Inside same-store sales increased by 3.3%, or 7.5% on a two-year basis, with inside margins improving to 42.4% [2] - Inside gross profit rose by 13.5% to $703.4 million, while fuel gross profit increased by 20.9% to $377.4 million, supported by a 0.8% rise in same-store gallons and a fuel margin of 41.6 cents per gallon [2] Expansion and Outlook - The company operated 2,921 stores as of October 31, marking a nearly 9% increase from the previous year, including 16 newly built locations and 26 acquired stores [3] - Casey's raised its fiscal 2026 outlook, now expecting EBITDA growth of 15% to 17%, with inside same-store sales projected to rise by 3% to 4% and margins between 41% and 42% [3]

Core Viewpoint - Casey's General Stores' stock price is expected to trend higher due to strong growth prospects, healthy cash flow, and broad market support, despite current valuation concerns [2][3]. Group 1: Financial Performance - Casey's General Stores reported a solid fiscal Q2 with net revenue of $4.51 billion, reflecting a year-over-year growth of 14.2%, driven by new-store growth and comparable store sales [5]. - Inside sales increased by 13%, with inside comparable sales up by 3.3% and fuel gallon comparable sales up by 0.8% [6]. - The company achieved an EBITDA increase of 17.5%, with net income and GAAP earnings rising by 14%, resulting in a GAAP EPS of 33 cents, which exceeded market expectations by 630 basis points [7]. Group 2: Cash Flow and Capital Returns - Casey's generates substantial free cash flow, supported by operational efficiency and a strong balance sheet, with total liabilities at 1.25 times equity and rising shareholder equity [8]. - Shareholder equity increased by 8% year-to-date, alongside dividend payments and share buybacks, indicating a commitment to returning value to shareholders [8]. Group 3: Market Support - The stock is trading at approximately 10 times its 2035 earnings outlook, suggesting a potential 100% upside in stock price over the coming years, supported by institutional and analyst backing [3]. - The overall market sentiment is positive, with a tendency toward accumulation of Casey's stock, which is expected to drive further price appreciation [3].

Core Insights - Casey's General Stores, Inc. (CASY) reported second-quarter fiscal 2026 results with earnings per share of $5.53, exceeding the Zacks Consensus Estimate of $4.92, marking a 14% increase from $4.85 in the prior-year quarter. However, total revenues of $4,506.1 million fell short of the estimate of $4,553 million, although this figure represents a 14.2% increase from $3,946.8 million in the year-ago period [3][10]. Sales Performance - Total inside sales increased by 13% year over year to $1.66 billion, with inside same-store sales rising 3.3%, compared to a 4% increase in the previous year. This growth was driven by strong performance in prepared food and dispensed beverages, including whole pizzas and hot sandwiches, as well as robust sales in non-alcoholic beverages [4][10]. - Fuel sales rose 11.3% year over year to $2.69 billion, with fuel gallons sold increasing by 16.8% to 906.7 million. The fuel margin improved slightly to 41.6 cents per gallon from 40.2 cents in the prior-year period [11]. Margin and Expense Analysis - Gross profit increased to $1.12 billion, up 17% year over year, with gross margin expanding by 60 basis points to 24.9%. Inside gross profit rose 13.5% year over year to $703.4 million, with an inside margin of 42.4%, up about 20 basis points from the prior-year period [5][6]. - Operating expenses increased by 16.7% to $711.6 million, primarily due to operating 236 additional stores compared to the previous year. Same-store employee expenses accounted for roughly 2% of the increase, driven by higher labor rates [7]. Segment Performance - Prepared Food & Dispensed Beverage sales rose 12% year over year to $467.8 million, with same-store sales increasing by 4.8%. The margin for this segment declined by 10 basis points to 58.6% [8]. - Grocery & General Merchandise sales increased by 13.4% to $1.19 billion, surpassing estimates, with same-store sales advancing by 2.7%. The margin for this segment expanded by 40 basis points to 36% [9]. Financial Overview - As of October 31, 2025, Casey's operated 2,921 stores, with cash and cash equivalents of $492 million, long-term debt of $2.35 billion, and shareholders' equity of $3.81 billion. The company repurchased approximately $31 million of shares during the quarter [12]. - A quarterly dividend of 57 cents per share was declared, payable on February 13, 2026, continuing the company's track record of dividend payments [13]. Future Outlook - For fiscal 2026, management expects EBITDA growth of 15-17%, an increase from the previously mentioned 10-12%. Total operating expenses are anticipated to rise by 8-10%, with plans to open 80 new stores [14][15].

Group 1 - Casey's General Stores, Inc. (CASY) is a convenience store chain that has shown consistent growth and is rated as a quality and bullish hold by analysts [1] - The investment group BAD BEAT Investing, led by Quad 7 Capital, has a track record of providing investment opportunities and has been predominantly long since May 2020 [1] - BAD BEAT Investing focuses on short- and medium-term investments, income generation, special situations, and momentum trades, aiming to educate investors on proficient trading [1] Group 2 - The investment group offers various benefits, including well-researched trade ideas, chat rooms, daily analyst summaries, and options trading education [1] - Analysts within the group have a beneficial long position in CASY, indicating confidence in the stock's performance [1]

Core Insights - Casey's General Stores, Inc. (CASY) is recognized as a growing convenience store chain with a maintained bullish hold rating on its stock [1] - BAD BEAT Investing, led by Quad 7 Capital, has a strong track record in providing investment opportunities and focuses on both long and short trades [1] - The investment group emphasizes educating investors on market dynamics and offers extensive research and trading tools [1] Company Overview - Casey's General Stores operates as a convenience store chain and has been previously traded with positive growth prospects [1] - The company is part of a broader investment strategy that includes short- and medium-term investments, income generation, and momentum trades [1] Investment Strategy - BAD BEAT Investing aims to teach investors to become proficient traders through a structured playbook and high-quality research [1] - The investment group provides weekly trade ideas, chat room access, and daily analyst upgrade/downgrade summaries to its members [1]

Group 1: Kum & Go Brand Transition - The Kum & Go brand was expected to be retained after its sale to Maverik, but it was ultimately removed and replaced with Maverik's branding [1][2] - Former CEO Kyle Krause expressed surprise at Maverik's decision to eliminate the Kum & Go brand, as he believed both brands would be maintained [3] Group 2: Freedom Oil Sale - Freedom Oil, founded in 1948, has transitioned from a few neighborhood stores to a network of 27 locations in Illinois and Florida [5] - The sale of Freedom Oil's convenience store chain to Mizpah Ventures LLC was finalized on December 9, with all stores set to close and rebrand under the Mizpah name [6] - The acquisition of Freedom Oil highlights the ongoing trend of smaller convenience store chains changing ownership, as seen with other recent acquisitions in the industry [8]