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Here's Why it is a Wise Idea to Hold KeyCorp (KEY) Stock Now
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KeyCorp’s (KEY - Free Report) shares rallied 60.1% in the last one year, outpacing the Zacks categorized Major Regional Banks industry’s growth of 39.9%. Improving rate scenario and robust loans and deposit growth position the stock well for the further growth.
However, various concerns, including significant exposure to real estate loans and the adverse impact of various financial regulations might curb the company's growth in the near term.
KeyCorp’s current year earnings estimates were stable in the last 60 days. Thus, the stock currently carries a Zacks Rank #3 (Hold).
Going by the fundamentals, the company saw its revenues increasing at a five-year (2012–2016) CAGR of 5.1%. Moreover, continued rise in loans and deposits is expected to support top-line growth in the quarters ahead.
Also, the company is well poised to benefit from an improving rate scenario. Notably, subsequent to the Fed’s rate hike in March, the company raised its prime lending rate from 3.75% to 4%.
Further, KeyCorp has been engaged in streamlining its operations, consolidating branches and diversifying products for the last few years. As a result, overall expenses (excluding merger charges) are expected to remain stable in the forthcoming quarters.
However, the company continues to have significant exposure to home equity and commercial real estate loans. Despite some improvement in the housing sector, this is likely to pose some risks for the company in the near term.
Also, the adverse impact of various regulatory restrictions might hurt profitability and restrict the company’s flexibility with respect to its business investments.
Some better-ranked stocks in the finance space are Raymond James Financial, Inc. (RJF - Free Report) , Bank of America Corporation (BAC - Free Report) and Comerica Incorporated (CMA - Free Report) .
Raymond James Financial witnessed an upward earnings estimate revision of 3.1% for the current fiscal year, in the last 60 days. Its share price increased 27.6% in the last six months. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bank of America carries a Zacks Rank #2 (Buy). For the current year, in the last 60 days, its Zacks Consensus Estimate was revised 1.2% upward. The company’s share price increased 45.5% in the last six months.
Comerica also carries a Zacks Rank #2. The company witnessed an upward earnings estimate revision of 1.7% for the current year, in the last 60 days. Its share price increased 39.4% in the last six months.
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Here's Why it is a Wise Idea to Hold KeyCorp (KEY) Stock Now
KeyCorp’s (KEY - Free Report) shares rallied 60.1% in the last one year, outpacing the Zacks categorized Major Regional Banks industry’s growth of 39.9%. Improving rate scenario and robust loans and deposit growth position the stock well for the further growth.
However, various concerns, including significant exposure to real estate loans and the adverse impact of various financial regulations might curb the company's growth in the near term.
KeyCorp’s current year earnings estimates were stable in the last 60 days. Thus, the stock currently carries a Zacks Rank #3 (Hold).
Going by the fundamentals, the company saw its revenues increasing at a five-year (2012–2016) CAGR of 5.1%. Moreover, continued rise in loans and deposits is expected to support top-line growth in the quarters ahead.
Also, the company is well poised to benefit from an improving rate scenario. Notably, subsequent to the Fed’s rate hike in March, the company raised its prime lending rate from 3.75% to 4%.
Further, KeyCorp has been engaged in streamlining its operations, consolidating branches and diversifying products for the last few years. As a result, overall expenses (excluding merger charges) are expected to remain stable in the forthcoming quarters.
However, the company continues to have significant exposure to home equity and commercial real estate loans. Despite some improvement in the housing sector, this is likely to pose some risks for the company in the near term.
Also, the adverse impact of various regulatory restrictions might hurt profitability and restrict the company’s flexibility with respect to its business investments.
Some better-ranked stocks in the finance space are Raymond James Financial, Inc. (RJF - Free Report) , Bank of America Corporation (BAC - Free Report) and Comerica Incorporated (CMA - Free Report) .
Raymond James Financial witnessed an upward earnings estimate revision of 3.1% for the current fiscal year, in the last 60 days. Its share price increased 27.6% in the last six months. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bank of America carries a Zacks Rank #2 (Buy). For the current year, in the last 60 days, its Zacks Consensus Estimate was revised 1.2% upward. The company’s share price increased 45.5% in the last six months.
Comerica also carries a Zacks Rank #2. The company witnessed an upward earnings estimate revision of 1.7% for the current year, in the last 60 days. Its share price increased 39.4% in the last six months.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>