Casey’s General Stores: A Stock Beyond the “Magnificent Seven”
Investors looking for opportunities outside the crowded “Magnificent Seven” mega-cap tech names should consider Casey’s General Stores (CASY), according to CNBC’s Jim Cramer.
“If you want a broadening out, broadening down [stock], look no further than Casey’s,” Cramer said Monday on Squawk on the Street.
Cramer was referencing the market’s growing concentration risk. After years of outperformance, Nvidia and the other six Mag 7 giants now account for roughly one-third of the S&P 500, according to Goldman Sachs. Cramer’s Charitable Trust—the portfolio of the CNBC Investing Club—holds shares of Nvidia, Meta, Microsoft, and Amazon, but not Tesla or Alphabet.
Expansion and Differentiation
Cramer argued that Casey’s has a compelling story of its own. The convenience store and truck-stop operator runs nearly 3,000 U.S. locations, with deep Midwest roots and a growing presence in the South, particularly in Texas and Florida.
A major growth driver is its prepared food business. Casey’s breakfast pizza, in particular, has become a signature offering and a magnet for traffic. The company even ranks as the fifth-largest pizza chain in the U.S. by number of kitchens.
“If we had a Casey’s General [in New York City]… I would do a radical pivot away from the [McDonald’s] Egg McMuffin to the breakfast pizza,” Cramer quipped.
Business Model and Tailwinds
Unlike many peers, Casey’s generates only about 30% of gross profit from fuel margins, making it less dependent on gasoline profits. Analysts at KeyBanc Capital Markets have pointed to industry consolidation as another long-term growth tailwind for Casey’s.
The stock has delivered impressive returns, climbing 28% year-to-date, although it has cooled off slightly in recent weeks. Shares trade at around $508, down nearly 4% from their July 25 all-time high of $527.51.
Cramer’s Take
“These guys have put great number after great number after great number, and I think they’re going to do it again,” Cramer said. “I really think this is a great one.”
Thank you
