Investors who want to fill up their portfolio with a stock outside the “Magnificent Seven” should consider Casey’s General Stores , CNBC’s Jim Cramer said Monday. “If you want a broadening out, broadening down [stock], look no further than Casey’s,” Cramer said on “Squawk on the Street.” Cramer is referencing the idea that some investors worry the market has become too top-heavy and are looking for stock opportunities in potentially under-the-radar places. After a prolonged stretch of outperformance, Nvidia and the other six tech giants comprising the Mag 7 now represent roughly a third of the S & P 500 , according to Goldman Sachs. Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club, owns shares of Nvidia, Meta Platforms , Microsoft and Amazon — all part of the Mag7. It does not have a stake in the other two members of the cohort, Tesla and Alphabet . Casey’s has a compelling investment story of its own, according to Cramer. The convenience store and truck-stop operator has nearly 3,000 locations in the U.S. with roots in the Midwest, but it’s on an expansion push across the south in states including Texas and Florida. The company’s prepared food menu, especially its breakfast pizza, has been a key pillar of its success, helping drive traffic to its locations. In fact, Casey’s says it’s the fifth-largest pizza chain in the U.S., as measured by the number of kitchens. “If we had a Casey’s General [in New York City], which we do not, I would do a radical pivot away from the [ McDonald’s ] Egg McMuffin to the breakfast pizza,” Cramer quipped. Casey’s generates about 30% of its gross profit from fuel margins, making it relatively less important to the company compared with convenience store peers, analysts at KeyBanc Capital Markets said in a note this summer. Those same analysts have also previously highlighted industry consolidation as a favorable long-term tailwind for Casey’s. As of Monday morning, shares of Casey’s are up more than 28% year to date, though they’ve cooled down in recent weeks. At $508 a share, the stock is down almost 4% from its all-time closing high of $527.51 reached on July 25. “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.”
