The S&P 500 (SPY) may be in bear market territory, but that doesn’t mean that every stock is down. In fact, there are 3 really good reasons why Casey’s General Stores (CASY) has been in the plus column this year…and likely to stay there. Read on below for why you should be filling up your portfolio with CASY shares at this time.
Let there be no doubt we are in the midst of a bear market. And most stocks will continue to head south.
(If you are unclear about that, please read my latest market outlook commentary, Investors: Wake Up and Smell the Pain (Part 2)
Gladly some stocks will go up. Casey’s General Stores (CASY) is the perfect example. Not only is it up 10% in the past month. More impressively is it up over 15% year to date while the stock market sank brutally into bear market territory.
Why is CASY rising above the pack?
First, because investors cling to more defensive names that are at less risk when a recession is on the horizon. Indeed, CASY fits nicely into the consumer staples camp which is in fashion at times like these.
Second, and more importantly, the profit picture for CASY keeps on improving. The higher EPS picture compels investors to bid up shares given the increased valued found there.
Third, our POWR Ratings model analyzes 5,300 stocks across 118 unique factors to find those built to outperform. Not only is CASY sporting a rating of A (Strong Buy) rating. But even more impressive it is in the top 1% of all stocks across these 118 factors.
All this explains why Wall Street is a big fan of this stock with the analyst at Deutsche Bank pounding the table the loudest with $276 price target. That may not seem that much higher in the grand scheme of things. However, with the bear market far from over, and most stocks likely to fall another 100-20% from here…then that $276 target makes CASY quite compelling at this time.
What to Do Next?
You may be curious to see some of my other top pick articles. In fact, I recently shared my top 2 picks for the year ahead. Check those out below:
Wishing you a world of investment success!
Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
Editor of Reitmeister Total Return
CASY shares closed at $224.94 on Friday, down $-2.27 (-1.00%). Year-to-date, CASY has gained 14.79%, versus a -19.84% rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.
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