Stock Rating Upgrade
The Value Trend Rating for The Cato Corp (NYSE: CATO) improved recently from D to C reflecting improving fundamentals and high Appreciation Potential. Details supporting this higher rating are included in our next report.
Recent Price Action
The Cato Corp (NYSE: CATO) stock increased 1.8% on 8/1/24. The shares closed at $5.21. However, trading volume in this advance was unusually low at 51% of normal. The stock has been extremely weak relative to the market over the last nine months and has declined -0.8% during the last week.
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 (Low Neutral). This VT Rating improved in recent days from D previously. 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 70 but a poor Power Rating of 18, and the Low Neutral Value Trend Rating results.
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