The S&P 500 (SPY) may be in bear market territory, but that doesn’t mean all stocks are down. In fact, there are 3 really good reasons why Casey’s General Stores (CASY) is in the plus column this year… and probably will stay there. Read below why you should supplement your portfolio with CASY shares right now.
Let there be no doubt that we are in the midst of a bear market. And most stocks will continue to move south.
(If you’re unclear on that, read my latest commentary on the market outlook, Investors: wake up and smell the pain (part 2)
Fortunately, some stocks are going up. Casey’s General Stores (CASY) is the perfect example. Not only is it up 10% in the past month. More impressively, it is up more than 15% so far as the stock market brutally sank into bear market territory.
Why does CASY rise above the pack?
First, because investors are sticking to more defensive names that are less risky when a recession looms. CASY does indeed fit nicely into the consumer goods camp that is in vogue in times like these.
Second, and more importantly, the profit picture for CASY continues to improve. The higher EPS picture is forcing investors to bid for stocks, given the higher value found there.
Third, our POWR ratings model analyzes 5,300 stocks across 118 unique factors to find those built to outperform. CASY is not only rated A (Strong Buy). But even more impressive is that it is in the top 1% of all stocks in these 118 factors.
All of this explains why Wall Street is a big fan of this stock, with the Deutsche Bank analyst hitting the table hardest with a price target of $276. That might not seem that much higher in the grand scheme of things. However, with the bear market far from over, and most stocks are likely to fall another 100-20% from here on…then that $276 target makes CASY quite attractive right now.
What to do?
You might be curious about some of my other top picks. In fact, I recently shared my top 2 picks for the year ahead. Check it out below:
I wish you a world of investment success!
Steve Reitmeister…but everyone calls me Reity (pronounced “Right”)
Editor of Reitmeister Total return
CASY shares closed at $224.94 on Friday, down $-2.27 (-1.0%). Year-to-date, CASY is up 14.79%, versus a -19.84% gain in the benchmark S&P 500 index over the same period.
Steve is better known to the StockNews public as “Reity”. Not only is he the CEO of the company, 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 selection.
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