Is CASY a good stock to buy? We came across a bullish thesis on Casey’s General Stores, Inc. on r/ValueInvesting by No_Game_No_Life4. In this article, we will summarize the bulls’ thesis on CASY. Casey’s General Stores, Inc.’s share was trading at $831.67 as of June 22nd. CASY’s trailing and forward P/E were 43.92 and 40.16 respectively according to Yahoo Finance.
Copyright: stocking / 123RF Stock Photo
Casey’s General Stores (CASY) is a leading convenience store operator with approximately 2,900 locations across small Midwestern communities, but the core investment thesis rests less on fuel sales and more on its highly profitable prepared-food business. While the market often categorizes Casey’s as a gas station chain, the company has built a durable moat through efficient scale in underserved towns where it is frequently the only meaningful option for food, groceries, and fuel.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
This positioning allows Casey’s to generate strong customer loyalty and attractive economics. The company’s inside-store operations, particularly its private-label pizza business, are the primary profit drivers, generating margins of roughly 41% to 42%, while fuel primarily serves as a traffic generator. Recent operating performance highlights the strength of this model, with third-quarter fiscal 2026 diluted EPS rising about 50% year-over-year to $3.49, net income increasing roughly 49% to $130 million, and EBITDA growing approximately 27.5% to $309 million despite only modest store growth.
Management has also raised full-year guidance, reflecting confidence in continued same-store sales growth and margin stability. Casey’s growth strategy combines disciplined acquisitions with operational improvements, exemplified by the EBITDA-accretive Fikes acquisition, which has expanded the company’s footprint while supporting earnings growth and debt reduction. The convenience store industry remains highly fragmented, providing a long runway for additional consolidation opportunities.
The primary concern is valuation, as shares trade around 42x forward earnings, leaving little room for operational missteps. However, the business possesses the characteristics of a high-quality compounder, including recurring demand, pricing power, and a proven capital allocation strategy. While the current valuation appears demanding, the stock could represent an attractive buying opportunity closer to 25x earnings, where investors would gain exposure to Casey’s long-term growth engine with a more favorable margin of safety.
Previously, we covered a bullish thesis on Casey’s General Stores, Inc. (CASY) by Two Natural Capital in May 2025, which highlighted the company’s rural-market dominance, prepared-food growth strategy, and acquisition-led expansion. CASY’s stock price has appreciated by approximately 78.48% since our coverage. No_Game_No_Life4 shares a similar view but emphasizes the company’s efficient-scale moat, strong operating momentum and disciplined capital allocation.
Casey’s General Stores, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held CASY at the end of the first quarter which was 47 in the previous quarter. While we acknowledge the risk and potential of CASY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CASY and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
