In the mood for some famous handmade pizza? Forget New York. Step inside one of Casey's General Stores. With over 2,400 locations across the Midwest, Casey's also happens to be America's fifth-largest pizza chain.
Having just earned a spot on the IBD Breakout Stocks Index, CASY stock is now rolling out a new buy point as the market indexes build on a new uptrend.
In Stock Checkup, Casey's sports a strong 96 Composite Rating, showing it's outpacing 96% of all stocks in terms of the most important stock-picking traits. Among its industry peers, it trails only gasoline station-based retailer Murphy USA, which has the highest-possible 99 rating.
The supermarkets and mini-markets retail group ranks a solid No. 32 among the 197 industries IBD tracks.
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50 Top Funds Go Shopping At Casey's General Stores
From humble beginnings as a general store in Boone, Iowa, in 1968, Casey's now operates more than 2,400 stores in 16 states, with over 43,000 employees. The retailer offers self-service gasoline stands alongside a wide selection of grocery items and freshly prepared food items.
The company expanded well beyond Boone by opening stores in other small towns across Iowa. Today, roughly 57% of Casey's stores are still found in areas with populations of 5,000 or less. About 17% of Casey's retail outlets are located in areas with populations of more than 20,000.
At its stores, Casey's offers fuel, food and snacks, as well as EV charging, gift cards and credit cards.
In addition to its made-from-scratch pizzas, Casey's popular prepared foods include doughnuts, subs and sandwiches.
Last month, the retailer celebrated the 21st anniversary of its fan-favorite breakfast pizza. And appropriate for a 21st birthday bash, for a limited time Casey's is offering guests the Ultimate Beer Cheese Breakfast Pizza.
Casey's operates from three company distribution centers, enabling delivery of roughly 90% of in-store products and 75% of fuel.
Large investors have shown a craving for the Fortune 500 company, with 50 funds with an "A" rating from IBD owning shares in CASY stock.
Over the last three years, Casey's has delivered average annual earnings growth of 16%. Including fiscal 2023 Q1 (ended July 31), over the last three quarters, average EPS growth has come in at 45%.
Casey's General Stores will report fiscal 2023 Q2 in December. Analysts expect 13% EPS growth for the quarter and a 10% increase for the full fiscal year.
Casey's At Bat For New Breakout
With its relative strength line already at a new high, Casey's is swinging for a 224 buy point in a first-stage cup pattern.
On Friday, CASY stock retook its 50-day moving average and has continued to climb above it.
On Tuesday, reversed higher to close higher on below-average, but rising volume.
Casey's General Stores ended the session just 2% shy of a new breakout.
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Follow Matthew Galgani on Twitter at @IBD_MGalgani.
