Can CASY Capitalize On It's Uber Partnership?

Casey’s General Stores will report earnings on Tuesday, June 8

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Casey's General Stores, Inc. (NASDAQ:CASY) is a chain of convenience stores in the Midwestern and Southern United States. The stock s up 27% year-over-year, while the recent 30-day deficit of 3% has found support at its 80-day moving average. Casey’s also has a forward dividend of $1.36 and a dividend yield of 0.62%.

On May 27, Casey’s General Stores announced a partnership with Uber Technologies' (NYSE:UBER) Uber Technologies' (UBER) Uber Eats to provide delivery from 755 locations, seven days per week. This new service partnership reflects the Casey's active pursuit to offer more delivery options for its branded products.

CASY Stock Chart

CASY is also scheduled to report its fourth-quarter earnings after the market closes on Tuesday, June 8. In recent history, Casey's General Stores has outperformed Wall Street's earnings expectations on three of its last four earnings reports released. However, all three of those post-earnings reactions were to the negative, including a 2.4% drop back in March. This time around, the options market is pricing in a larger-than-usual post-earnings move of 6.3%. 

From a fundamental point of view, Casey’s General Stores is a mixed bag for potential investors. The company's revenues have been declining in recent years and are currently down about 25% since fiscal 2019. However, it's also reported a 63% net income increase since fiscal 2019. Nonetheless, Casey’s General Stores stock continues to trade at a somewhat high price-earnings ratio of 24.01.

There is nothing particularly remarkable about CASY. However, Casey’s General Stores stock's previous performance would suggest that the stock will likely trade at a higher price five years from now.

 

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