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Are Investors Undervaluing Casey's General Stores (CASY) Right Now?

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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Casey's General Stores (CASY - Free Report) is a stock many investors are watching right now. CASY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also recognize that CASY has a P/B ratio of 4.38. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.58. Over the past 12 months, CASY's P/B has been as high as 4.80 and as low as 3.42, with a median of 3.91.

Finally, investors will want to recognize that CASY has a P/CF ratio of 15.90. 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. CASY's P/CF compares to its industry's average P/CF of 16.31. Over the past year, CASY's P/CF has been as high as 17.09 and as low as 12.32, with a median of 14.24.

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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