Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

Cullen Frost Bankers: Slow Loan Growth And High Costs

Cullen Frost Bankers (NYSE:CFR) ought to be a great bank. It is a major player in the attractive Texas market and it has a pretty attractive loan portfolio with little in the way of credit issues and a reasonable dividend yield. Yet this is one bank that investors should steer clear of for a while. The company's loan growth rate over the last few years has been slower than peers, while costs are higher than peers and they have been growing faster than revenues for five of the last six quarters. Given these negative factors and a relatively rich valuation, investors should avoid CFR for the time being.

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San Antonio-based Cullen Frost Bankers is a...

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