Cullen/Frost Bankers (CFR) shares soared 3.8% in the last trading session to close at $107.51. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9% gain over the past four weeks.
Shares of Cullen Frost rallied in the last trading session as the US Federal Reserve's recent data lifts the central bank's confidence that inflation is coming down towards its 2% target – a trend that signals interest rate cuts on the horizon. Thus, for banks reeling under aggressive monetary tightening, this is a positive development. As the rates come down, so will banks’ funding costs. Moreover, given the soft landing of the U.S. economy, the lending scenario is expected to improve further. These positive developments have turned investors bullish on the banking sector stocks, driving CFR higher.
This financial holding company is expected to post quarterly earnings of $2.05 per share in its upcoming report, which represents a year-over-year change of -17%. Revenues are expected to be $516.66 million, up 0.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Cullen/Frost, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CFR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Cullen/Frost belongs to the Zacks Banks - Southwest industry. Another stock from the same industry, California Bank of Commerce (CALB), closed the last trading session 3.1% higher at $22.85. Over the past month, CALB has returned 7.1%.
For California Bank of Commerce, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.52. This represents a change of -20% from what the company reported a year ago. California Bank of Commerce currently has a Zacks Rank of #3 (Hold).
Image: Bigstock
Cullen/Frost (CFR) Surges 3.8%: Is This an Indication of Further Gains?
Cullen/Frost Bankers (CFR) shares soared 3.8% in the last trading session to close at $107.51. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9% gain over the past four weeks.
Shares of Cullen Frost rallied in the last trading session as the US Federal Reserve's recent data lifts the central bank's confidence that inflation is coming down towards its 2% target – a trend that signals interest rate cuts on the horizon. Thus, for banks reeling under aggressive monetary tightening, this is a positive development. As the rates come down, so will banks’ funding costs. Moreover, given the soft landing of the U.S. economy, the lending scenario is expected to improve further. These positive developments have turned investors bullish on the banking sector stocks, driving CFR higher.
This financial holding company is expected to post quarterly earnings of $2.05 per share in its upcoming report, which represents a year-over-year change of -17%. Revenues are expected to be $516.66 million, up 0.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Cullen/Frost, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CFR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Cullen/Frost belongs to the Zacks Banks - Southwest industry. Another stock from the same industry, California Bank of Commerce (CALB), closed the last trading session 3.1% higher at $22.85. Over the past month, CALB has returned 7.1%.
For California Bank of Commerce, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.52. This represents a change of -20% from what the company reported a year ago. California Bank of Commerce currently has a Zacks Rank of #3 (Hold).