The one name on the KBW list rated "underperform" by the firm is Cullen/Frost Bankers ( CFR) of San Antonio. The rating reflects a premium valuation for the shares, which in turn reflects the company's very long and very consistent track record of strong earnings performance, with no surprises. The bank was one of the strongest industry earners for the 10-year period through 2012, with no surprises.
Cullen/Frost had $23.5 billion in total assets as of Sept. 20. The company's ROTCE for the first three quarters of 2013 was 13.02%. The shares closed at $72.93 Friday and traded for 2.4 time tangible book value, for 17.9 times the consensus 2014 EPS estimate of $4.07, and for 17.1 times the consensus 2015 EPS estimate of $4.25.
The following chart shows Cullen/Frost's stock performance this year, against the KBW Bank Index and the S&P 500:
CFR data by YCharts