Published on 15 Jan 2024 on Simply Wall St. via Yahoo Finance

Here's Why Cathay General Bancorp (NASDAQ:CATY) Has Caught The Eye Of Investors

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

In contrast to all that, many investors prefer to focus on companies like Cathay General Bancorp (NASDAQ:CATY), which has not only revenues, but also profits. Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Cathay General Bancorp with the means to add long-term value to shareholders.

See our latest analysis for Cathay General Bancorp