Pathward Financial: Good Business, Attractive Valuation

  • Pathward Financial stands out with a high share of fee-based income and a high ROE business model. Despite ongoing net interest margin pressure from expected Fed rate cuts, management's shift to higher-yielding assets should partially offset this headwind. Valuation is attractive: forward P/E and PEG ratios are compelling given the company's robust EPS growth outlook and high return on tangible equity.