Casey's General Stores Highlighted Among Cyclical Stocks Poised for Gains
Zacks Equity Research highlighted Casey's General Stores as a top cyclical pick following midterm election shifts, supported by strong fundamentals and positive analyst revisions.
Casey's General Stores Inc. was recently spotlighted by Zacks Equity Research as one of five cyclical stocks well-positioned for upside following political shifts in the U.S. Congress. Zacks suggested that broader market enthusiasm may rotate away from technology toward consumer-centric and retail companies, noting that Casey's holds a Zacks Rank #2 (Buy) along with double-digit returns year to date and short-term double-digit upside potential.
The convenience chain has also made strategic operational moves, expanding its prepared food offerings by launching a permanent pan pizza menu item in late October. The pizza rollout aims to build on the company's prepared food momentum, which has outpaced fuel sales in boosting revenue and margins. According to Bank of America, the company is recognized as the fifth-largest pizza chain in the United States, operating nearly 3,000 locations across the Midwest and South.
Institutional investors have continued to demonstrate interest in the company. In the third quarter, Robbins Farley boosted its stake by 21.9% to 8,356 shares, joining several other firms including BlackRock Inc. and Bank of America Corp DE that initiated substantial positions in the second quarter. MarketBeat reports that hedge funds and institutional investors collectively hold 85.63% of the outstanding shares.
The company previously delivered quarterly earnings of $7.37 per share, beating consensus estimates of $6.78, while revenue reached $5.68 billion, up 24.3% from the prior year. Casey's also declared a regular quarterly dividend of $0.65 per share, equivalent to an annualized payout of $2.60 and a 0.4% yield, payable on November 13th to shareholders of record as of November 1st.
Valuation assessments show a mixed picture among analysts. GuruFocus noted that CASY recently traded at $699.26, which it views as 27.8% above its GF Value metric of $546.96, while carrying a GF Score of 79 out of 100. Meanwhile, MarketBeat data indicates that Wall Street equities research analysts maintain a Moderate Buy consensus on the stock, with an average target price of $835.38 based on sixteen Buy ratings and five Hold ratings.