KeyCorp’s (KEY - Free Report) shares have gained 47.2% in the past 12 months, outperforming the 34.2% rally for the industry it belongs to. Improving rate scenario and robust loans and deposit growth position the stock well for further growth. Also, given its solid capital position, the company is expected to continue enhancing shareholder value through efficient capital deployment activities.
However, the company’s significant exposure to risky loan portfolios might curb its growth in the near term.
Also, KeyCorp’s Zacks Consensus Estimate for the current-year earnings has been revised marginally downward over the last 30 days. Thus, the stock currently carries only a Zacks Rank #3 (Hold).
Going by the fundamentals, the company witnessed its revenues increasing at a five-year (2012–2016) CAGR of 5.1%. Moreover, continued rise in loans and deposits along with lesser regulations are expected to continue supporting top-line growth in the quarters ahead.
Also, the company is well poised to benefit from the gradual improvement in the rate scenario. Notably, subsequent to the latest Fed rate hike, the company raised its prime lending rate from 4% to 4.25%.
Further, the company’s efforts toward streamlining operations, consolidating branches and diversifying products should help in reducing expenses, thereby supporting bottom-line growth in the quarters ahead.
However, the company continues to have significant exposure to home equity and commercial real estate loans. Despite some improvement in the housing sector, it is likely to pose some risks for the company in the near term.
Some better-ranked stocks in the finance space are Carolina Financial Corporation , Raymond James Financial, Inc. (RJF - Free Report) and Comerica Incorporated (CMA - Free Report) .
Carolina Financial witnessed an upward earnings estimate revision of 4.5% for the current year, over the last 30 days. Its share price has increased 60.5% in the last 12 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.
Raymond James Financial’s earnings estimates for the current fiscal year have remained stable over the past 30 days. Its shares have gained 42.1% in the last 12 months. It carries a Zacks Rank #2 (Buy).
Comerica also carries a Zacks Rank #2. The company witnessed an upward earnings estimate revision of 3.7% for the current year, over the last 30 days. Its share price has increased 56% in a year’s time.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
KeyCorp’s (KEY - Free Report) shares have gained 47.2% in the past 12 months, outperforming the 34.2% rally for the industry it belongs to. Improving rate scenario and robust loans and deposit growth position the stock well for further growth. Also, given its solid capital position, the company is expected to continue enhancing shareholder value through efficient capital deployment activities.
However, the company’s significant exposure to risky loan portfolios might curb its growth in the near term.
Also, KeyCorp’s Zacks Consensus Estimate for the current-year earnings has been revised marginally downward over the last 30 days. Thus, the stock currently carries only a Zacks Rank #3 (Hold).
Going by the fundamentals, the company witnessed its revenues increasing at a five-year (2012–2016) CAGR of 5.1%. Moreover, continued rise in loans and deposits along with lesser regulations are expected to continue supporting top-line growth in the quarters ahead.
Also, the company is well poised to benefit from the gradual improvement in the rate scenario. Notably, subsequent to the latest Fed rate hike, the company raised its prime lending rate from 4% to 4.25%.
Further, the company’s efforts toward streamlining operations, consolidating branches and diversifying products should help in reducing expenses, thereby supporting bottom-line growth in the quarters ahead.
However, the company continues to have significant exposure to home equity and commercial real estate loans. Despite some improvement in the housing sector, it is likely to pose some risks for the company in the near term.
Some better-ranked stocks in the finance space are Carolina Financial Corporation , Raymond James Financial, Inc. (RJF - Free Report) and Comerica Incorporated (CMA - Free Report) .
Carolina Financial witnessed an upward earnings estimate revision of 4.5% for the current year, over the last 30 days. Its share price has increased 60.5% in the last 12 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.
Raymond James Financial’s earnings estimates for the current fiscal year have remained stable over the past 30 days. Its shares have gained 42.1% in the last 12 months. It carries a Zacks Rank #2 (Buy).
Comerica also carries a Zacks Rank #2. The company witnessed an upward earnings estimate revision of 3.7% for the current year, over the last 30 days. Its share price has increased 56% in a year’s time.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on CMA - FREE
Get the latest research report on KEY - FREE
Get the latest research report on RJF - FREE