All You Need to Know About Cullen/Frost (CFR) Rating Upgrade to Buy

Core Viewpoint - Cullen/Frost Bankers (CFR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often adjust their valuations based on earnings estimates, leading to significant buying or selling activity that affects stock prices [4]. Earnings Outlook for Cullen/Frost - Cullen/Frost is projected to earn $9.21 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 2.6% [8]. - Over the past three months, the Zacks Consensus Estimate for Cullen/Frost has risen by 4%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a 'Strong Buy' or 'Buy' rating, highlighting their superior earnings estimate revision characteristics [9][10].