We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Cathay General (CATY) Should be Added to Your Portfolio
Read MoreHide Full Article
In the Q1 earnings season, the Finance sector was one of the best performers. Though uncertainty over further interest rate hikes on mixed U.S. economic data and increasing signals of rising political commotion in the White House is perceived, still we can add some of the banking stocks to our portfolio based on strong fundamentals and solid long-term growth opportunity.
Cathay General Bancorp (CATY - Free Report) is one such stock that has been witnessing upward estimate revisions, reflecting analysts’ optimism about its future prospects. Over the last 60 days, the Zacks Consensus Estimate for 2017 and 2018 increased 5.1% and around 2.3%, respectively.
Further, shares of this Zacks Rank #2 (Buy) stock have gained 15.0% over the last one compared with 23.6% growth recorded by the Zacks categorized Banks-West industry.
Notably, Cathay General has a number of other aspects that make it an attractive investment option.
4 Reasons Why Cathay General is an Attractive Buy Now
Revenue Growth: Cathay General continues to make steady progress toward improving its top line. Also, the company’s projected sales growth (F1/F0) of 15.9% (as against the industry average of about 3.96%) indicates constant upward momentum in revenues.
Earnings Strength: Cathay General witnessed earnings growth of 14.2% in the last three–five years. In addition, the company’s long-term (three–five years) estimated EPS growth rate of 8.0% promises rewards for investors over the long run.
Superior Return on Equity (ROE): Cathay General’s ROE of 9.83%, as compared with the industry average of 9.63%, highlights the company’s commendable position over its peers.
Stock is Undervalued: Cathay General has a P/E ratio and P/B ratio of 14.46x and 1.55x compared to the S&P 500 average of 18.95x and 3.23x, respectively. Based on these ratios, the stock seems undervalued.
Comerica Incorporated (CMA - Free Report) has been witnessing upward estimate revisions for the last 60 days. Additionally, the stock moved up nearly 48.1% over the past one year. It currently has a Zacks Rank #2.
The PNC Financial Services Group, Inc. (PNC - Free Report) has been witnessing upward estimate revisions for the last 60 days. Also, the company’s shares have risen nearly 2.9% over the last six months. It presently holds a Zacks Rank #2.
3 Stocks to Ride a 588% Revenue Explosion
At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold... By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Why Cathay General (CATY) Should be Added to Your Portfolio
In the Q1 earnings season, the Finance sector was one of the best performers. Though uncertainty over further interest rate hikes on mixed U.S. economic data and increasing signals of rising political commotion in the White House is perceived, still we can add some of the banking stocks to our portfolio based on strong fundamentals and solid long-term growth opportunity.
Cathay General Bancorp (CATY - Free Report) is one such stock that has been witnessing upward estimate revisions, reflecting analysts’ optimism about its future prospects. Over the last 60 days, the Zacks Consensus Estimate for 2017 and 2018 increased 5.1% and around 2.3%, respectively.
Further, shares of this Zacks Rank #2 (Buy) stock have gained 15.0% over the last one compared with 23.6% growth recorded by the Zacks categorized Banks-West industry.
Notably, Cathay General has a number of other aspects that make it an attractive investment option.
4 Reasons Why Cathay General is an Attractive Buy Now
Revenue Growth: Cathay General continues to make steady progress toward improving its top line. Also, the company’s projected sales growth (F1/F0) of 15.9% (as against the industry average of about 3.96%) indicates constant upward momentum in revenues.
Earnings Strength: Cathay General witnessed earnings growth of 14.2% in the last three–five years. In addition, the company’s long-term (three–five years) estimated EPS growth rate of 8.0% promises rewards for investors over the long run.
Superior Return on Equity (ROE): Cathay General’s ROE of 9.83%, as compared with the industry average of 9.63%, highlights the company’s commendable position over its peers.
Stock is Undervalued: Cathay General has a P/E ratio and P/B ratio of 14.46x and 1.55x compared to the S&P 500 average of 18.95x and 3.23x, respectively. Based on these ratios, the stock seems undervalued.
Other Stocks to Consider
M&T Bank Corporation (MTB - Free Report) has been witnessing upward estimate revisions for the last 60 days. Over the last six months, the company’s share price has been up more than 1.5%. It carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Comerica Incorporated (CMA - Free Report) has been witnessing upward estimate revisions for the last 60 days. Additionally, the stock moved up nearly 48.1% over the past one year. It currently has a Zacks Rank #2.
The PNC Financial Services Group, Inc. (PNC - Free Report) has been witnessing upward estimate revisions for the last 60 days. Also, the company’s shares have risen nearly 2.9% over the last six months. It presently holds a Zacks Rank #2.
3 Stocks to Ride a 588% Revenue Explosion
At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold...
By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>