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KEY Stock Analysis — KeyCorp

Sector: Financials

AI Verdict

KeyCorp trades at 11.2x next year's earnings while analysts expect +14.6% EPS growth—cheap for the growth on offer, but the moat relies on regional banking stability, so any credit shock could erase the discount.

Competitive Moat

KeyCorp operates as a regional bank with a diversified loan portfolio and a strong presence in the Midwest and Northeast, giving it sticky local relationships and lower funding costs. Its defensibility comes from entrenched branch networks and long-standing business banking ties that are hard for new entrants to replicate.

Summary

KeyCorp's forward P/E of 11.2x with 14.6% expected EPS growth puts it in focus as a value play among regional banks.

Where It Stands

Shares are up 21.76% over the past year, RSI is 41.3 (cooling), and the stock trades at 11.2x forward earnings versus a sector median of 14x.

Key Metrics

Analyst Consensus

14 Buy · 10 Hold · 0 Sell (24 analysts)

Bull Case

With 14.6% forward EPS growth expected and a forward P/E of just 11.2x, you're getting growth at a discount to the sector.

Bear Case

If the P/E reverts to the sector median of 14x, upside is limited, but if earnings disappoint and the multiple compresses to 10x, shares could drop by roughly 11%.

Catalyst to Watch

Quarterly credit quality updates—any spike in loan losses or deposit outflows could quickly undermine the growth narrative.

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