Pathward Financial (CASH) Soars 5.98% in Week, Hits 2025 High

Pathward Financial (CASH) rose 0.12% today, marking its seventh consecutive day of gains, with a 5.98% increase over the past week. The share price reached its highest level since May 2025, with an intraday gain of 1.29%.

The strategy of buying CASH shares after they reached a recent high and holding for 1 week yielded moderate returns over the past five years, with an average annual return of 7.5%. The maximum drawdown during this period was 15.4%, which occurred in 2023, highlighting the strategy's resilience amid market volatility. While the overall performance was positive, the low maximum drawdown suggests that the strategy may not have fully capitalized on broader market movements, making it suitable for investors seeking stable, low-risk returns.

Pathward Financial's stock price has been influenced by several key factors. The company has demonstrated strong earnings growth, with its earnings per share (EPS) increasing at a compounded annual growth rate of 21.6% over the past five years. This growth rate significantly outpaces its 9.8% annualized revenue growth, indicating robust profitability and operational efficiency.

Recently, the company's financial performance has been bolstered by a favorable tax season, which has driven related revenue. However, Pathward Financial is also facing pressure on its Net Interest Margins (NIMs), which could impact its future earnings. Despite this challenge, the company's strong earnings growth and recent financial performance have contributed to its stock price appreciation.

In the second quarter, Pathward Financial reported financial results that exceeded both EPS and sales estimates. This positive performance has further boosted investor confidence, leading to higher trading volumes and a rise in the company's share price. The strong Q2 results reflect the company's ability to navigate market challenges and deliver consistent growth.