Wall Street Pro Thinks Casey’s General Stores Stock Will Continue to Soar

2 hours ago 1

Joel South

Thu, March 26, 2026 astatine 11:28 AM CDT 4 min read

Casey’s General Stores (CASY) expanded substance margins to 41.0 cents per gallon successful Q3 FY2026, driving full substance gross nett up 15.3% to $348.2 million, portion its Rewards programme surpassed 10 cardinal members and powered wrong same-store income maturation of 4.0% with borderline enlargement of 130 ground points to 42.2%. The institution targets astatine slightest 80 caller store openings successful FY2026 and has delivered 26 consecutive years of dividend increases with the astir caller rise astatine 14%.
Moderating crude lipid prices and expanding convenience store nett margins from substance volatility presumption Casey’s for durable net growth, though borderline pressures from its chickenhearted wings enlargement and elevated valuation astatine 33.56x guardant P/E make near-term headwinds.
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Casey's General Stores (NASDAQ:CASY) has been a standout performer, with shares up 6.22% implicit the past week, 3.82% implicit the past period and 27.35% year-to-date. Over the trailing 12 months, the banal climbed 66.29%, precocious touching a 52-week precocious of $721.50.

The Street statement people sits astatine $722.03 with a "Moderate Buy" rating. JPMorgan expert Thomas Palmer initiated sum astatine Neutral with a $719 terms people — astir 10% upside from the stock's caller scope adjacent $714. Whether CASY tin realistically scope $719 by extremity of 2026 depends connected respective cardinal drivers.

Palmer's thesis centers connected a wide tailwind: Convenience stores should spot nett tailwinds for aggregate quarters from caller substance terms volatility. Casey's substance borderline expanded to 41.0 cents per gallon successful Q3 FY2026, up from 36.4 cents per gallon successful the anterior year, driving full substance gross nett up 15.3% to $348.2 million. Palmer besides flags Casey's propulsion into chickenhearted wings volition apt bring borderline headwinds successful its Prepared Foods business, tempering his enthusiasm capable to enactment astatine Neutral contempt the constructive setup.

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Fuel borderline expansion: With WTI crude moderating to $64.51 per tube successful February 2026 versus $75.74 a twelvemonth earlier, Casey's substance economics stay favorable. Sustained borderline per gallon supra 40 cents compounds straight into EBITDA growth, which absorption has guided astatine 18% to 20% for FY2026 — raised from a anterior scope of 15% to 17%.
Inside income momentum and loyalty scale: Casey's Rewards has surpassed 10 cardinal members, powering wrong same-store income maturation of 4.0% successful Q3 FY2026. Inside borderline expanded astir 130 ground points to 42.2%. This loyalty-driven repetition postulation supports durable, compounding gross for semipermanent investors.
Store enlargement and acquisition integration: Casey's is targeting astatine slightest 80 caller store openings successful FY2026 and astir 500 full store additions implicit its three-year plan. The institution has besides delivered 26 consecutive years of dividend increases, with the astir caller dividend rise astatine 14%.