Alert: Positive Investment/Fundamental Signals (10/9/24)-The Cato Corp (NYSE: CATO)

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Extremely significant positive changes in The Cato Corp (NYSE: CATO) investment behavior have recently occurred: its shorter term price trend turned up, the stock’s recent price rise disrupted its longer term downtrend, positive upside/downside volume developed, and the stock rose on very heavy volume.

Recent minimal positive changes in fundamentals have benefitted The Cato Corp (NYSE: CATO): significant quarterly earnings acceleration occurred.

In light of these very positive signals we are reviewing our current Overall Rating of C. We would view the shares with optimism pending completion of this review in the next several days.

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Current PriceTarget Research Rating

CATO’s future returns on capital are forecasted to be in line with the cost of capital. Accordingly, the company is expected to continue to be Value Creation neutral.

Cato has a current Value Trend Rating of C (Neutral). With this rating, PTR’s two proprietary measures of a stock’s current attractiveness are providing very contradictory signals. Cato has a good Appreciation Score of 73 but a poor Power Rating of 29, and the Neutral Value Trend Rating results.

Recent Price Action

On 10/9/24, The Cato Corp (NYSE: CATO) stock enjoyed a large increase of 2.5%, closing at $5.72. Moreover, trading volume in this advance was exceptionally high at 397% of normal. Relative to the market the stock has been weak over the last nine months but has risen 17.7% during the last week.

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