CASY Overview

Market Performance: On December 11, 2025, U.S. stock indices, including the S&P 500 and Dow Jones, reached new closing records following a quarter-point interest rate cut by the U.S. central bank, prompting a shift from tech stocks to equities more sensitive to rate changes.

Investment Strategy: Investors are advised to consider low-leverage stocks for stability during market volatility, as these stocks are generally less risky and can provide steady returns, especially in uncertain economic conditions.

Leverage and Risk: The article explains the concept of leverage in finance, emphasizing the importance of selecting companies with low debt-to-equity ratios to mitigate financial risk and avoid potential losses during economic downturns.

Stock Recommendations: Five stocks are highlighted as strong investment options based on their solid earnings growth and low leverage: Casey’s General Stores, Hamilton Insurance Group, Northrip Bancorp, REV Group, and Engie, all of which have favorable Zacks Ranks indicating strong potential for future performance.

Investment Opportunity: Evercore ISI views the recent pullback in Casey's General Stores (CASY) stock as a buying opportunity, highlighting the company's growth in traffic, market share, and EBITDA.

Strong Performance Indicators: Analyst Michael Montani noted that Casey's 3.3% comparable sales growth outpaces the industry, driven by successful promotions and product momentum, indicating a strong customer experience and effective acquisition integration.

Valuation Context: While CASY's valuation at 27.5X the 2027 EPS is considered high, it aligns with historical ranges and is justified by ongoing share gains and M&A activities.

Future Growth Drivers: Casey's is expected to achieve 15%-17% EBITDA growth in fiscal 2026, supported by advancements in inside sales, fuel volumes, food innovation, and strategic acquisitions.