Cathay General Bancorp (CATY) Stock: Buy, Sell, or Hold?
CATY - Cathay General Bancorp
$59.12
-0.48 (-0.81%)
▼
5d:
-2.83%
30d:
-4.71%
90d:
-4.12%
HOLD
MODERATE Confidence
Analysis Updated: Oct 9, 2026 12:00 AM ET
Earnings: Oct 20, 2026
9d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: CATY is fairly valued with market pricing in 0.6% annual growth. Fine to hold or accumulate slowly on dips.
📊 HOLD: CATY is fairly valued with market pricing in 0.6% annual growth. Fine to hold or accumulate slowly on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$76.17
Based on 5.5% avg growth
INTRINSIC VALUE TODAY
$47.29
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 9.8x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CATY is currently trading at $59.12, which is considered oversold relative to its 30-day fair value range of $60.04 to $62.18. The stock's valuation (Forward PE: 9.9) is in line with its historical norms (9.8). At these levels, the market is pricing in 0.6% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, CATY is in a uptrend. The price is currently testing key support at $58.28. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock scores a mixed 48/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, CATY is in a uptrend. The price is currently testing key support at $58.28. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock scores a mixed 48/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$60.04 -
$62.18
Company Quality Score
54/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
75.7%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (48/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($65.00)
- NEUTRAL: Market pricing in 0.6% annual earnings growth - fairly valued
- NEUTRAL: Bottoming setup forming (48/100) — watch for confirmation
Trading Range Analysis
30-Day Trading Range
$60.04 -
$62.18
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$58.29
Resistance Level
$61.45
Current Trend
Uptrend
Technical data as of
Oct 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
9.94
Wall Street Target
$65.00
(+9.9%)
Revenue Growth (YoY)
13.8%
Earnings Growth (YoY)
24.5%
Profit Margin
43.7%
Valuation Premium vs History
+0.6% premium
PE vs Historical
9.9 vs 9.8
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+0.6%
(market-implied from PE analysis)
1-Year Target
$59.47
(+1%)
2-Year Target
$59.83
(+1%)
3-Year Target
$60.19
(+2%)
3-Yr Target (if PE normalizes)
(PE: 10→10)
PE COMPRESSION
$59.35
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 19.9, Growth: 7.0%)
$144.65
(+145%)
Base:
(SPY PE: 9.9, Growth: 7.0%)
$72.39
(+22%)
Bear:
(PE: 8.4, Growth: 7.0%)
$61.53
(+4%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (12x PE), but valuation improves significantly next year (10x PE) as earnings recover.
Trailing PE: 11.64 | Current EPS (TTM): $5.12
Bull Case
$76.17
(+29%)
Analyst growth 16.2%, PE expands to 12.8
Base Case
$69.24
(+17%)
Market implied 16.2%, PE stable at 11.6
Bear Case
$40.53
(-31%)
Severe decline -20.0%, PE contracts to 9.9
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: October 10, 2026 6:30 PM ET
Data refreshes hourly during market hours. Next update: 7:30 PM
Data refreshes hourly during market hours. Next update: 7:30 PM
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Technical Signals Check
Is CATY showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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