While Casey's General Stores, Inc. (NASDAQ:CASY) might not be the most widely known stock at the moment, it led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Casey's General Stores’s outlook and value based on the most recent financial data to see if the opportunity still exists.
What's the opportunity in Casey's General Stores?
According to my valuation model, Casey's General Stores seems to be fairly priced at around 0.73% above my intrinsic value, which means if you buy Casey's General Stores today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $172.86, there’s only an insignificant downside when the price falls to its real value. In addition to this, Casey's General Stores has a low beta, which suggests its share price is less volatile than the wider market.
What kind of growth will Casey's General Stores generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted profit growth of 9.4% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Casey's General Stores, at least in the short term.
What this means for you:
Are you a shareholder? It seems like the market has already priced in CASY’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on CASY, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you'd like to know more about Casey's General Stores as a business, it's important to be aware of any risks it's facing. In terms of investment risks, we've identified 2 warning signs with Casey's General Stores, and understanding them should be part of your investment process.
If you are no longer interested in Casey's General Stores, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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