Trade-Ideas: Cullen/Frost Bankers (CFR) Is Today's "Barbarian At The Gate" Stock - TheStreet

Trade-Ideas LLC identified

Cullen/Frost Bankers

(

CFR

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cullen/Frost Bankers as such a stock due to the following factors:

  • CFR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.8 million.
  • CFR has traded 175,568 shares today.
  • CFR traded in a range 238.2% of the normal price range with a price range of $4.26.
  • CFR traded above its daily resistance level (quality: 68 days, meaning that the stock is crossing a resistance level set by the last 68 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on CFR:

Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that offers commercial and consumer banking services in Texas. The company operates through two segments, Banking and Frost Wealth Advisors. The stock currently has a dividend yield of 3.2%. CFR has a PE ratio of 15. Currently there is 1 analyst that rates Cullen/Frost Bankers a buy, 2 analysts rate it a sell, and 10 rate it a hold.

The average volume for Cullen/Frost Bankers has been 548,400 shares per day over the past 30 days. Cullen/Frost has a market cap of $4.2 billion and is part of the financial sector and banking industry. The stock has a beta of 0.96 and a short float of 10.9% with 11.61 days to cover. Shares are down 7.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cullen/Frost Bankers as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • CFR's revenue growth has slightly outpaced the industry average of 3.6%. Since the same quarter one year prior, revenues slightly increased by 4.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CULLEN/FROST BANKERS INC has improved earnings per share by 7.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CULLEN/FROST BANKERS INC increased its bottom line by earning $4.29 versus $3.80 in the prior year. This year, the market expects an improvement in earnings ($4.48 versus $4.29).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 9.6% when compared to the same quarter one year prior, going from $66.70 million to $73.08 million.
  • The gross profit margin for CULLEN/FROST BANKERS INC is currently very high, coming in at 97.74%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.58% is above that of the industry average.
  • Net operating cash flow has significantly increased by 122.68% to $61.53 million when compared to the same quarter last year. In addition, CULLEN/FROST BANKERS INC has also vastly surpassed the industry average cash flow growth rate of -32.77%.

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