CFR Stock Recent News

Driven by strong fundamentals and good growth prospects, the Cullen/Frost (CFR) stock looks like an attractive pick right now.

Investor optimism over expected rate cuts in 2024 is expected to aid bank stocks like Cullen/Frost (CFR), Glacier Bancorp (GBCI) and Arrow Financial (AROW).

While Texas bank Cullen/Frost has struggled this year alongside peers, funding cost pressure is subsiding and net interest income has stabilized. Frost has a strong track record with respect to credit quality. While expense growth is high as the bank expands in key Texas markets, this will pay off longer term. The stock doesn't look expensive given growth prospects and its profitability, with around 15-20% upside looking reasonable.

Cullen/Frost Bankers (CFR) came out with quarterly earnings of $2.38 per share, beating the Zacks Consensus Estimate of $2.14 per share. This compares to earnings of $2.59 per share a year ago.

Cullen/Frost (CFR) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

The stock market suffered the worst week in 7 months due to the Fed bursting the dreams of rapid rate cuts. Higher for longer rates is a major threat to big tech, trading at 36X forward earnings, a 31% historical premium. But A-rated dividend aristocrat bargains represent world-beater, Buffett-style "wonderful companies at wonderful prices".

Rising long-term rates have hammered some sectors and have many investors worried about how companies will finance themselves in the future. The rise in rates is primarily due to rising term premiums created by the bond market losing confidence in the Fed, achieving 2% long-term inflation. Small companies are at far higher risk of having to refinance at much higher rates. Large dividend blue chips are the safe choice in a higher-rate world.

Cullen/Frost (CFR) is hurt by mounting costs and a concentrated commercial loan portfolio, which are likely to remain in the upcoming period as well. Deteriorating credit quality is another headwind.

Cullen/Frost's (CFR) Q2 earnings are primarily aided by an increase in revenues. Improvement in profitability ratios is a positive.

Although the revenue and EPS for Cullen/Frost (CFR) give a sense of how its business performed in the quarter ended June 2023, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.