Should Value Investors Buy Casey's General Stores (CASY) Stock?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Casey's General Stores (CASY). CASY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 22.45. This compares to its industry's average Forward P/E of 22.61. Over the last 12 months, CASY's Forward P/E has been as high as 24.82 and as low as 19.98, with a median of 21.92.
We also note that CASY holds a PEG ratio of 2.12. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CASY's industry has an average PEG of 2.13 right now. CASY's PEG has been as high as 2.36 and as low as 1.90, with a median of 2.13, all within the past year.
We should also highlight that CASY has a P/B ratio of 3.90. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CASY's current P/B looks attractive when compared to its industry's average P/B of 3.95. Over the past 12 months, CASY's P/B has been as high as 3.90 and as low as 2.94, with a median of 3.45.
Finally, investors will want to recognize that CASY has a P/CF ratio of 14.02. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.13. Within the past 12 months, CASY's P/CF has been as high as 14.02 and as low as 10.12, with a median of 12.30.
These are just a handful of the figures considered in Casey's General Stores's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CASY is an impressive value stock right now.
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Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
