CATO
The Cato Corporation Consumer Cyclical - Apparel Retail Investor Relations →
The Cato Corporation (CATO) closed at $3.03 as of 2026-02-02, trading 48.4% below its 200-week moving average of $5.87. This places CATO in the extreme value zone. The stock moved further from the line this week, up from -48.4% last week. The 14-week RSI sits at 33, indicating neutral momentum.
Over the past 1976 weeks of data, CATO has crossed below its 200-week moving average 16 times. On average, these episodes lasted 53 weeks. Historically, investors who bought CATO at the start of these episodes saw an average one-year return of +2.3%.
With a market cap of $60 million, CATO is a small-cap stock. Free cash flow yield is currently negative, meaning the company is burning cash. Return on equity stands at -5.3%. The stock trades at 0.3x book value.
The company has been aggressively buying back shares, reducing its share count by 7.0% over the past three years.
Over the past 33.2 years, a hypothetical investment of $100 in CATO would have grown to $101, compared to $2849 for the S&P 500. CATO has returned 0.0% annualized vs 10.6% for the index, underperforming the broader market over this period.
Free cash flow has been declining at a -100% compound annual rate. A deteriorating cash flow trend warrants extra scrutiny — the stock may be cheap for a reason.
Growth of $100: CATO vs S&P 500
Monthly data normalized to $100 at start. Vertical dashed lines mark 200-week MA touches.
What Happens After CATO Crosses Below the Line?
Across 15 historical episodes, buying CATO when it crossed below its 200-week moving average produced an average return of -10.2% after 12 months (median -21.0%), compared to +15.1% for the S&P 500 over the same periods. 33% of those episodes were profitable after one year. After 24 months, the average return was +8.4% vs +36.6% for the index.
Each line shows $100 invested at the moment CATO crossed below its 200-week MA. Bold blue = stock average. Gray dashed = S&P 500 average over same periods.
Historical Touches
CATO has crossed below its 200-week MA 16 times with an average 1-year return of +2.3% after recovery.
| Crossed Below | Recovered | Weeks | Max Depth | 1-Year Return | Return Since Touch |
|---|---|---|---|---|---|
| Mar 1988 | May 1991 | 162 | 86.3% | +18.0% | +542.0% |
| Apr 1994 | Apr 1994 | 2 | 4.4% | -29.6% | +55.1% |
| May 1994 | Jun 1994 | 1 | 0.3% | -29.3% | +48.1% |
| Jun 1994 | Jun 1994 | 1 | 1.3% | -25.7% | +47.6% |
| Jul 1994 | Aug 1997 | 161 | 62.8% | -20.2% | +58.4% |
| Dec 1997 | Dec 1997 | 1 | 3.3% | +39.5% | +104.0% |
| Oct 1998 | Oct 1998 | 1 | 3.6% | +91.6% | +94.2% |
| Jan 1999 | Jan 1999 | 1 | 1.1% | +46.3% | +81.4% |
| Oct 2007 | Mar 2009 | 76 | 36.3% | -24.6% | -57.7% |
| May 2009 | May 2009 | 2 | 1.3% | +28.9% | -60.7% |
| Jun 2009 | Jul 2009 | 4 | 12.0% | +58.8% | -55.6% |
| Aug 2009 | Sep 2009 | 4 | 6.0% | +31.6% | -59.9% |
| Oct 2016 | Nov 2016 | 5 | 7.0% | -52.6% | -82.5% |
| Nov 2016 | Nov 2019 | 156 | 59.3% | -46.7% | -83.2% |
| Dec 2019 | Apr 2021 | 69 | 55.9% | -51.4% | -76.7% |
| May 2022 | Ongoing | 195+ | 69.4% | Ongoing | -68.4% |
| Average | 53 | — | +2.3% | — |
Not financial advice. This is an educational tool. Past performance does not guarantee future results. Do your own research before making investment decisions.
Data as of Friday close, 2026-02-02