Cathay General Bancorp (CATY) Stock: Buy, Sell, or Hold?
CATY - Cathay General Bancorp
$60.84
0.76 (1.26%)
▲
5d:
-0.99%
30d:
-1.87%
90d:
-2.73%
HOLD
LOW Confidence
Analysis Updated: Oct 2, 2026 12:00 AM ET
Earnings: Oct 20, 2026
17d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: CATY is fairly valued with market pricing in 1.2% annual growth. Fine to hold or accumulate slowly on dips.
📊 HOLD: CATY is fairly valued with market pricing in 1.2% 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
$75.88
Based on 5.5% avg growth
INTRINSIC VALUE TODAY
$47.12
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 $60.84, which is considered slightly low relative to its 30-day fair value range of $60.69 to $62.36. The stock's valuation (Forward PE: 10.1) is in line with its historical norms (9.8). At these levels, the market is pricing in 1.2% 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 approaching resistance at $62.56. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: CATY scores 72/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. 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 approaching resistance at $62.56. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: CATY scores 72/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. 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
SLIGHTLY LOW
Historical Trading Range
$60.69 -
$62.36
Company Quality Score
65/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
86.7%
All Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Strong technical setup (72/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($65.00)
- NEUTRAL: Market pricing in 1.2% annual earnings growth - fairly valued
- CAUTION: Bottoming setup, but lagging the sector by 17% over 20 days — wait for relative strength
Trading Range Analysis
30-Day Trading Range
$60.69 -
$62.36
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$58.29
Resistance Level
$62.56
Current Trend
Uptrend
Technical data as of
Oct 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
10.11
Wall Street Target
$65.00
(+8.2%)
Revenue Growth (YoY)
13.8%
Earnings Growth (YoY)
24.5%
Profit Margin
43.7%
Valuation Premium vs History
+1.2% premium
PE vs Historical
10.1 vs 9.8
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+1.2%
(market-implied from PE analysis)
1-Year Target
$60.80
(+1%)
2-Year Target
$61.53
(+2%)
3-Year Target
$62.27
(+4%)
3-Yr Target (if PE normalizes)
(PE: 10→10)
PE COMPRESSION
$60.33
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.4, Growth: 6.9%)
$148.02
(+146%)
Base:
(SPY PE: 10.1, Growth: 6.9%)
$73.39
(+22%)
Bear:
(PE: 8.6, Growth: 6.9%)
$62.38
(+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): $5.11
Bull Case
$76.08
(+27%)
Analyst growth 16.2%, PE expands to 12.8
Base Case
$69.16
(+15%)
Market implied 16.2%, PE stable at 11.6
Bear Case
$40.46
(-33%)
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 02, 2026 4:20 PM ET
Data refreshes hourly during market hours. Next update: 5:20 PM
Data refreshes hourly during market hours. Next update: 5:20 PM
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Technical Signals Check
Is CATY showing a specific setup today?
Insider Activity (6 Months)
0
Buys
1
Sells
Net
INSIDERS SELLING
Recent Transactions
Chang Liu
SELL
4836 shares
2026-04-06
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