Cathay General Bancorp (CATY) Stock: Buy, Sell, or Hold?
CATY - Cathay General Bancorp
$64.24
3.61 (5.95%)
▲
5d:
+6.8%
30d:
+6.23%
90d:
+2.1%
WAIT
LOW Confidence
Analysis Updated: Oct 22, 2026 12:00 AM ET
Earnings: Oct 21, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 MIXED SIGNALS: CATY shows conflicting indicators. Wait for confirmation before entering.
📊 MIXED SIGNALS: CATY shows conflicting indicators. Wait for confirmation before entering.
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 $64.24, which is considered extended relative to its 30-day fair value range of $59.45 to $61.87. From a valuation perspective, the stock is trading at a premium (Forward PE: 10.8) compared to its historical average (9.8). At these levels, the market is pricing in 3.4% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, CATY is showing sideways momentum. The price is approaching resistance at $64.71. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 6.0% recently.
Market Sentiment: CATY scores 35/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, CATY is showing sideways momentum. The price is approaching resistance at $64.71. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 6.0% recently.
Market Sentiment: CATY scores 35/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$59.45 -
$61.87
Company Quality Score
41/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
29.5%
All Signals
- BEARISH: Price extended above range
- BEARISH: Weak technical setup (35/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+6.0%)
- NEUTRAL: Near Wall St target ($65.00)
- NEUTRAL: Market pricing in 3.4% annual earnings growth - fairly valued
- WARNING: Composite score 41/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$59.45 -
$61.87
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$58.21
Resistance Level
$64.71
Current Trend
Sideways
Technical data as of
Oct 22, 2026
Fundamental Context
Forward P/E (Next Year Est.)
10.80
Wall Street Target
$65.00
(+1.2%)
Revenue Growth (YoY)
13.8%
Earnings Growth (YoY)
24.5%
Profit Margin
43.7%
Valuation Premium vs History
+3.4% premium
PE vs Historical
10.8 vs 9.8
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+3.4%
(market-implied from PE analysis)
1-Year Target
$66.42
(+3%)
2-Year Target
$68.68
(+7%)
3-Year Target
$71.02
(+11%)
3-Yr Target (if PE normalizes)
(PE: 11→10)
PE COMPRESSION
$64.44
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 19.9, Growth: 7.0%)
$144.65
(+125%)
Base:
(SPY PE: 10.8, Growth: 7.0%)
$78.66
(+22%)
Bear:
(PE: 9.2, Growth: 7.0%)
$66.86
(+4%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (12x PE), but valuation improves significantly next year (11x PE) as earnings recover.
Trailing PE: 11.84 | Current EPS (TTM): $5.12
Bull Case
$77.48
(+21%)
Analyst growth 16.2%, PE expands to 13.0
Base Case
$70.44
(+10%)
Market implied 16.2%, PE stable at 11.8
Bear Case
$41.23
(-36%)
Severe decline -20.0%, PE contracts to 10.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: October 22, 2026 8:03 PM ET
Data refreshes hourly during market hours. Next update: 9:03 PM
Data refreshes hourly during market hours. Next update: 9:03 PM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
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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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