Cullen/Frost Hits New 52-Week High - Analyst Blog


Shutterstock photo

Shares of Cullen/Frost Bankers, Inc. ( CFR ) crafted a new 52-week high, touching $78.96 during the trading session on March 24. The closing price of this commercial and consumer banking services provider represents a solid year-to-date return of 6.2%. The trading volume for the session was 334,785 shares.

Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock has plenty of upside left, given its strong estimate revisions over the last 60 days and expected long-term earnings growth of 7.67%.

Growth Drivers

Impressive fourth-quarter 2013 results including organic growth and a strong capital position were the primary growth drivers for Cullen/Frost.

On Jan 29, Cullen/Frost reported its fourth-quarter 2013 earnings of 99 cents per share, beating the Zacks Consensus Estimate as well as the year-ago earnings of 97 cents by 2.1%. A year-over-year increase of 6.2% in total revenue along with a solid increase of 5.4% and 9.1% in average loans and deposits, respectively, were the tailwinds for the quarter.

Moreover, as of Dec 31, 2013, non-performing assets declined 33.7% year over year to $69.8 million. The allowance for loan losses as a percentage of total loans stood at 0.97%, down 16 basis points from the prior-year quarter.

On the flip side, Cullen/Frost's non-interest expense climbed 5.8% year over year to $154.5 million. This was due to an increase in personnel expenses and net occupancy costs, partially offset by a decline in deposit insurance costs and intangible amortization costs.

Estimate Revisions Show Potency

Over the last 60 days, 8 out of 13 estimates for 2014 have been revised upward, lifting the Zacks Consensus Estimate around 1% to $4.11 per share. For 2015, 8 out of 13 estimates moved north, helping the Zacks Consensus Estimate advance 1.2% to $4.29 per share.

Other Southwest banks worth considering include Southside Bancshares Inc. ( SBSI ) with a Zacks Rank #1 (Strong Buy), while Prosperity Bancshares Inc. ( PB ) and First Financial Bankshares Inc. ( FFIN ) carry a Zacks Rank #2.

CULLEN FROST BK (CFR): Free Stock Analysis Report

FIRST FIN BK-TX (FFIN): Free Stock Analysis Report

PROSPERITY BCSH (PB): Free Stock Analysis Report

SOUTHSIDE BANCS (SBSI): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
More Headlines for: CFR , FFIN , PB , SBSI

More from


Equity Research
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by