KRE - Cullen/Frost Bank's Strengths Are Undervalued

2024-06-08 12:02:39 ET

Summary

• Texas regional bank Cullen/Frost Bankers has underperformed the SPDR S&P Regional Banking ETF in the past three months.
• CFR trades at a higher price to book value and P/E ratio compared to the regional bank average.
• CFR has strong market share in Texas, is well-capitalized, and has conservative loan underwriting, making it an attractive investment.
• On top of a high-quality loan book and a loyal, growing customer base across Texas, CFR boasts an excellent dividend growth profile.

Over the past three months, the stock price of Texas regional bank Cullen/Frost Bankers ( CFR ) has underperformed even the poorly performing SPDR S&P Regional Banking ETF ( KRE ):

And yet, CFR is not cheaper than the regional bank average. The opposite is true....

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