Casey's General Stores (CASY) Highlighted As Weak On High Volume

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Casey's General Stores ( CASY) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Casey's General Stores as such a stock due to the following factors:

  • CASY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.9 million.
  • CASY has traded 95,577 shares today.
  • CASY is trading at 16.37 times the normal volume for the stock at this time of day.
  • CASY is trading at a new low 7.01% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on CASY:

Casey's General Stores, Inc., together with its subsidiaries, operates convenience stores under the Casey's General Store name in 14 Midwestern states, primarily Iowa, Missouri, and Illinois. The stock currently has a dividend yield of 0.9%. CASY has a PE ratio of 25.4. Currently there are 4 analysts that rate Casey's General Stores a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Casey's General Stores has been 245,300 shares per day over the past 30 days. Casey's General Stores has a market cap of $3.3 billion and is part of the services sector and retail industry. The stock has a beta of 0.71 and a short float of 4.9% with 9.06 days to cover. Shares are up 24.2% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Casey's General Stores as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • CASY's revenue growth has slightly outpaced the industry average of 0.9%. Since the same quarter one year prior, revenues slightly increased by 8.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • CASEYS GENERAL STORES INC's earnings per share declined by 6.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CASEYS GENERAL STORES INC increased its bottom line by earning $3.46 versus $2.86 in the prior year. This year, the market expects an improvement in earnings ($3.77 versus $3.46).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Food & Staples Retailing industry and the overall market, CASEYS GENERAL STORES INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The change in net income from the same quarter one year ago has exceeded that of the Food & Staples Retailing industry average, but is less than that of the S&P 500. The net income has decreased by 6.1% when compared to the same quarter one year ago, dropping from $55.71 million to $52.29 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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