Cullen/Frost (CFR) Riding High On Top-Line Strength
Zacks Investment Research | Jun 02, 2017 02:09AM ET
On Jun 1, we issued an updated research report on Cullen/Frost Bankers, Inc. (NYSE:CFR) . The company remains well poised for growth backed by increasing revenues and a strong capital position. However, escalating expenses remain a concern.
Shares of Cullen/Frost have gained 10% over the last six months, significantly outperforming the Zacks categorized Banks - Southwest industry’s decline of nearly 1%.
The company’s current year and current-quarter earnings estimates have been revised upward by 4.1% and 3.2%, respectively, over the last 60 days. As a result, the stock holds a Zacks Rank #2 (Buy).
Over the last five years (ended 2016), the company’s revenues witnessed a compound annual growth rate of about 5.9%. Its low cost funding source is expected to further strengthen revenues in a rising rate environment.
The company raised its quarterly dividend for the 24th consecutive year. This reflects its strong balance sheet position and commitment to enhance shareholder value.
However, the company’s aim to grow its franchise will keep expenses on the higher side. This will likely keep Cullen/Frost exposed to operational risks in the near term.
Other Stocks to Consider
Some of the other stocks in the same space worth considering include BOK Financial Corp. (NASDAQ:BOKF) , BancFirst Corp. (NASDAQ:BANF) and Southside Bancshares, Inc. (NASDAQ:SBSI) .
Southside Bancshares currently carries a Zacks Rank #2 while BOK Financial and BancFirst sport a Zacks Rank #1 (Strong Buy). You can see .
Southside Bancshares’ current-year earnings estimates were revised 6.0% upward over the past 60 days. Over the last year, its share price jumped 13.31%.
BOK Financial witnessed an upward earnings estimate revision of 14.2%, over the past 60 days. Also, its share price gained 27.8% over the last year.
BancFirst's earnings estimates moved upward by 6.9% over the past 60 days, for the current year. Its share price increased 50.7%, over the last year.
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