Cathay (CATY) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Cathay General (CATY) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, with institutional investors playing a role in this relationship [4]. - Rising earnings estimates for Cathay suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of Cathay to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for Cathay - For the fiscal year ending December 2025, Cathay is expected to earn $4.51 per share, with a 1% increase in the Zacks Consensus Estimate over the past three months [8].