This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cullen/Frost Has Earned Its Premium, and More

Stocks in this article: CFR BAC C JPM USB CBSH

McEvoy's price target for Cullen/Frost is $68, and he estimates the company will earn $3.85 a share this year, with earnings growing to $4.05 a share in 2014.

Following a meeting with Evans and Cullen/Frost CFO Phil Green, McEvoy wrote in a note to clients late on Monday that "we feel that, after slowing a bit in 1Q13, loan growth is set to accelerate through the rest of '13. A consistent calling effort supported by higher advertising in recent years is working."

"Calling" refers to commercial loan officers' visits to current and prospective customers for the bank. Commercial lenders focus on adding full relationships with business clients, including deposits, as well as credit lines and loans. Cullen/Frost grew its average deposits by 14% over the 12-month period ended March 31.

McEvoy also pointed out the bank's location advantage. "Management is the first to admit the benefits of being located in Texas and that the state has been attracting out-of-state competitors for years ( BB&T (BBT) is a recent example). In 2012, Texas job growth was 3.1% vs. the national average of 1.4%," he wrote.

"Building new relationships in the downturn should translate into accelerated loan and revenue growth once the economy shows more meaningful expansion," McEvoy wrote. He went on to compare Cullen/Frost's aggressive efforts to grow its customer base during and after the financial crisis to the company's previous success using the same strategy after a recession in the 80s.

For long-term investors looking for a well-managed, strong earnings performer with almost no downside surprises over a very long period, along with an attractive dividend that is very well supported by earnings, Cullen/Frost speaks for itself. The stock isn't cheap and it's not for day-traders. It isn't a recovery play. It is a long-term growth play, for investors who don't want to remain committed for many years.

CFR Chart CFR data by YCharts

Interested in more on Cullen/Frost Bankers? See TheStreet Ratings' report card for this stock.

-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs