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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Casey's General Stores (CASY) is a stock many investors are watching right now. CASY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 26.66 right now. For comparison, its industry sports an average P/E of 26.91. CASY's Forward P/E has been as high as 27.92 and as low as 20.80, with a median of 25.04, all within the past year.
Investors will also notice that CASY has a PEG ratio of 2.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CASY's PEG compares to its industry's average PEG of 2.87. Over the last 12 months, CASY's PEG has been as high as 3.28 and as low as 1.66, with a median of 2.70.
Finally, investors will want to recognize that CASY has a P/CF ratio of 12.84. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.45. Over the past year, CASY's P/CF has been as high as 12.84 and as low as 6.92, with a median of 8.35.
These are just a handful of the figures considered in Casey's General Stores's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CASY is an impressive value stock right now.
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