Casey's General Stores: Valuation Has Outrun Its Fundamentals - I Would Wait For A Pullback
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Dividend Collection AgencyInvesting GroupFollow5ShareSavePlay(9min)Comment(1)SummaryCasey's General Stores has outperformed the S&P 500, driven by robust fundamentals and double-digit growth in revenue, EPS, and EBITDA.Despite strong execution and a well-covered, growing dividend, CASY appears grossly overvalued at nearly 32x earnings, with downside risk outweighing near-term upside.Management guides for continued double-digit growth in inside same-store sales and EBITDA, supported by 500 new store openings and increased share buybacks.I maintain a hold rating on CASY, recommending patience and considering a buy only after a 20%-30% price correction below $500. krblokhin/iStock Editorial via Getty Images Introduction Casey's General Stores (CASY) is a stock that popped on my radar nearly 2 years ago, and I had been bullish until they exceeded their valuation. What jumped out at me initially were theirThis article was written byDividend Collection Agency7.86K FollowersFollowFormerly known as "The Dividend Collectuh." Top 1% of financial experts on TipRanks. Contributing analyst to the iREIT+Hoya Capital investment group.
Dividend Collection Agency is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran who enjoys dividend investing in quality blue-chip stocks, BDC's, and REITs. I am a buy-and-hold investor who prefers quality over quantity and plans to supplement his retirement income and live off dividends in the next 5-7 years. I aspire to reach and help the hard working, lower and middle class workers build investment portfolios of high quality, dividend-paying companies. I also hope to give investors a new perspective to help them reach financial independence.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.