Are Investors Undervaluing Casey's General Stores (CASY) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Casey's General Stores (CASY) is a stock many investors are watching right now. CASY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that CASY has a P/B ratio of 3.66. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.82. CASY's P/B has been as high as 3.82 and as low as 2.94, with a median of 3.32, over the past year.
Finally, investors will want to recognize that CASY has a P/CF ratio of 13.02. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CASY's P/CF compares to its industry's average P/CF of 13.45. Within the past 12 months, CASY's P/CF has been as high as 13.59 and as low as 10.12, with a median of 11.70.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Casey's General Stores is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CASY feels like a great value stock at the moment.
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Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
