CATO CATO Corp Forecast, Technical & Fundamental Analysis

CATO sees its 50-day moving average cross bearishly below its 200-day moving average

The 50-day moving average for CATO moved below the 200-day moving average on September 14, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.

Technical Analysis (Indicators)

Bearish Trend Analysis

Following a 3-day decline, the stock is projected to fall further. Considering past instances where CATO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 73%.

The Aroon Indicator for CATO entered a downward trend on September 23, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Bullish Trend Analysis

The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where CATO's RSI Oscillator exited the oversold zone, 24 of 30 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 80%.

The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.

The Momentum Indicator moved above the 0 level on September 24, 2026. You may want to consider a long position or call options on CATO as a result. In 89 of 118 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 75%.

The Moving Average Convergence Divergence (MACD) for CATO just turned positive on September 18, 2026. Looking at past instances where CATO's MACD turned positive, the stock continued to rise in 40 of 57 cases over the following month. The odds of a continued upward trend are 70%.

Following a +7.27% 3-day Advance, the price is estimated to grow further. Considering data from situations where CATO advanced for three days, in 159 of 237 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.

Fundamental Analysis (Ratings)

The Tickeron PE Growth Rating for this company is 1 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Price Growth Rating for this company is 80 (best 1 - 100 worst), indicating slightly worse than average price growth. CATO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of 87 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.287) is normal, around the industry mean (3.366). CATO's P/E Ratio (4171.120) is considerably higher than the industry average of (154.317). Projected Growth (PEG Ratio) (0.080) is also within normal values, averaging (0.517). CATO has a moderately high Dividend Yield (0.046) as compared to the industry average of (0.013). P/S Ratio (0.070) is also within normal values, averaging (0.652).

The Tickeron SMR rating for this company is 91 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CATO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock worse than average.