Trade-Ideas LLC identified Casey's General Stores ( CASY) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $35.6 million.
  • CASY has traded 71,383 shares today.
  • CASY traded in a range 221.5% of the normal price range with a price range of $7.65.
  • CASY traded below its daily resistance level (quality: 106 days, meaning that the stock is crossing a resistance level set by the last 106 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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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 0.8%. CASY has a PE ratio of 2. Currently there are 4 analysts that rate Casey's General Stores a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Casey's General Stores has been 374,500 shares per day over the past 30 days. Casey's General Stores has a market cap of $4.4 billion and is part of the services sector and retail industry. The stock has a beta of 0.26 and a short float of 4% with 4.22 days to cover. Shares are down 3% year-to-date as of the close of trading on Tuesday.

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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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 56.25% and other important driving factors, this stock has surged by 25.06% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • CASEYS GENERAL STORES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CASEYS GENERAL STORES INC increased its bottom line by earning $4.62 versus $3.27 in the prior year. This year, the market expects an improvement in earnings ($5.76 versus $4.62).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food & Staples Retailing industry. The net income increased by 58.5% when compared to the same quarter one year prior, rising from $49.87 million to $79.03 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. 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.
  • Net operating cash flow has significantly increased by 113.56% to $143.16 million when compared to the same quarter last year. In addition, CASEYS GENERAL STORES INC has also vastly surpassed the industry average cash flow growth rate of 4.16%.

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