Casey's General Stores: High Valuation Appears To Have Already Priced In The Upside

GS Investing
1.34K Followers
(7min)

Summary

  • I recommend a hold rating for Casey’s General Stores due to its current valuation already reflecting the improved fundamental outlook.
  • CASY reported strong 2Q25 results, with total revenue of $3.95 billion and significant EBIT and EBITDA growth, driven by robust fuel margins and inside store sales.
  • Management's conservative FY26 outlook suggests potential for beating guidance, but the current valuation tempers my enthusiasm for a buy rating.

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I recommended a hold rating for Casey’s General Stores (NASDAQ:CASY) when I wrote about it last year as I expected fuel margins (cents per gallon [CPG]) to see normalization given the weak demand outlook, which would drag down

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1.34K Followers
I consider an investment ideal if it performs its core business in a sector projected to experience structural (organic) growth in excess of GDP growth over the next 5-10 years; profits from sustainable competitive advantages that translate into attractive unit economics; In the hands of competent, ethical, and long-term thinkers; with a fair valuation

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.

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