Casey’s Stock Eases Premarket After Strong Q1: Retail Traders See Buying Opportunity

Casey's General Stores posted strong first-quarter earnings after the market closed in the previous session, but investors reserved judgment on the stock ahead of the company's conference call scheduled for early Tuesday.

Shares of the company dropped 1% in premarket trading, even as the sentiment among retail investors climbed higher.

On Stocktwits, CASY had an 'extremely bullish' (96/100) sentiment as of the last reading, climbing a few notches over the last days. The message volume jumped 1,900% in the past 24 hours, with the stock closing 3.1% higher on Monday.

"Historically, the stock dips about 2.5% post earnings and catches momentum after that," a user posted.

Casey's first-quarter revenue rose to $4.46 billion and profit to $5.02 a share, above analysts' expectations on both counts. The company said it now had 200 more stores in operation compared to the first quarter of its last fiscal year.

Casey's ranks among the U.S.'s largest convenience retailers and fuel distributors, and its strong result is another indication that consumer purchases, especially for essentials, are holding strong despite macroeconomic headwinds.

Following the results, investment research firm Wells Fargo reiterated its 'Overweight' rating and a $540 price target on the company's shares. Momentum is likely to be good into August, setting the stage for a guidance raise, according to the analyst's summary posted on The Fly.

Casey’s will hold an earnings call with analysts at 8:30 am ET on Tuesday.

As of the last close, Casey's stock is up 31.6% year-to-date, far outpacing the 10.4% gains in the S&P 500 index.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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