UK markets open in 4 hours 9 minutes
  • NIKKEI 225

    27,397.17
    +34.42 (+0.13%)
     
  • HANG SENG

    22,564.85
    -1.93 (-0.01%)
     
  • CRUDE OIL

    81.32
    +0.31 (+0.38%)
     
  • GOLD FUTURES

    1,924.20
    -5.80 (-0.30%)
     
  • DOW

    33,949.41
    +205.57 (+0.61%)
     
  • BTC-GBP

    18,413.34
    -354.50 (-1.89%)
     
  • CMC Crypto 200

    516.84
    -10.35 (-1.96%)
     
  • ^IXIC

    11,512.41
    +199.06 (+1.76%)
     
  • ^FTAS

    4,253.35
    +11.50 (+0.27%)
     

Earnings Estimates Moving Higher for Cullen/Frost (CFR): Time to Buy?

Cullen/Frost Bankers (CFR) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this financial holding company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Cullen/Frost, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

Current-Quarter Estimate Revisions

The earnings estimate of $2.76 per share for the current quarter represents a change of +79.22% from the number reported a year ago.

The Zacks Consensus Estimate for Cullen/Frost has increased 9.22% over the last 30 days, as five estimates have gone higher compared to no negative revisions.

Current-Year Estimate Revisions

The company is expected to earn $8.60 per share for the full year, which represents a change of +27.22% from the prior-year number.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, seven estimates have moved up for Cullen/Frost versus no negative revisions. This has pushed the consensus estimate 6.27% higher.

Favorable Zacks Rank

The promising estimate revisions have helped Cullen/Frost earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Investors have been betting on Cullen/Frost because of its solid estimate revisions, as evident from the stock's 14.2% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CullenFrost Bankers, Inc. (CFR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research