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KeyCorp (KEY) Outpaces Stock Market Gains: What You Should Know

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KeyCorp (KEY - Free Report) closed the most recent trading day at $12.12, moving +1.76% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.1%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, lost 2.19%.

Coming into today, shares of the company had lost 23.95% in the past month. In that same time, the Finance sector lost 4.8%, while the S&P 500 gained 3.13%.

Investors will be hoping for strength from KeyCorp as it approaches its next earnings release, which is expected to be April 20, 2023. The company is expected to report EPS of $0.42, down 6.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.8 billion, up 6.37% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.77 per share and revenue of $7.11 billion, which would represent changes of -7.81% and -1.79%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for KeyCorp. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 11.58% lower. KeyCorp is currently a Zacks Rank #5 (Strong Sell).

Digging into valuation, KeyCorp currently has a Forward P/E ratio of 6.72. For comparison, its industry has an average Forward P/E of 7.82, which means KeyCorp is trading at a discount to the group.

It is also worth noting that KEY currently has a PEG ratio of 1.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KEY's industry had an average PEG ratio of 1.12 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow KEY in the coming trading sessions, be sure to utilize Zacks.com.


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