Wall Street analysts expect KeyCorp (KEY) to post quarterly earnings of $0.38 per share in its upcoming report, which indicates a year-over-year increase of 26.7%. Revenues are expected to be $1.88 billion, up 17.5% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 2.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a com ...

Core Viewpoint - KeyCorp is expected to report solid third-quarter 2025 results on October 16, with notable improvements in lending activities and fee income from various segments [1][11]. Loan Demand and Balances - Average loan balance for KeyCorp is projected at $106.2 billion, showing a slight year-over-year decline [2] - Demand for commercial and industrial (C&I) loans, which make up about 50% of average loan balances, was strong in the first two months of the quarter [1] - Consumer loans, accounting for nearly 31% of average loan balances, also maintained decent demand [1] Net Interest Income (NII) - The consensus estimate for NII is $1.18 billion, reflecting a year-over-year increase of 22.4% [4] - The projected NII is $1.17 billion, indicating a 21% rise from the previous year [4] - The Federal Reserve's recent 25-basis-point rate cut is not expected to negatively impact NII due to stable rates during most of the quarter [3] Non-Interest Income - Non-interest income is anticipated to benefit from improved mortgage banking income, with commercial mortgage servicing fees estimated at $73.6 million (1% increase) and consumer mortgage income at $15.8 million (31.8% increase) [6] - Total non-interest income is estimated at $704.5 million, indicating a year-over-year increase of 5.5% [10] Trading and Investment Banking - Increased client activity and market volatility are expected to positively influence KeyCorp's trading business [8] - Investment banking and debt placement fees are estimated at $181.3 million, reflecting a 6% rise [8] Expenses and Asset Quality - Total non-interest expenses are projected to be $1.2 billion, representing a 9.6% year-over-year increase [12] - Provision for credit losses is estimated at $105.7 million, indicating an 11.3% rise year over year [13] - Non-performing assets (NPAs) are expected to decline by 1.7% to $728.6 million [14] Earnings Expectations - The consensus estimate for KeyCorp's earnings is 38 cents per share, a 26.7% increase from the prior year [16] - Sales are expected to reach $1.88 billion, indicating a rise of 17.3% [16] Earnings Prediction Model - KeyCorp has a positive Earnings ESP of +2.64% and a Zacks Rank of 3, suggesting a high likelihood of beating the consensus estimate [15]

ROSWELL, Ga.--(BUSINESS WIRE)-- #RCM--KeyBank selects MediStreams' payment and remittance technology for its new payment management platform. ...

Core Insights - The article highlights that several S&P 500 companies are expected to achieve significant revenue growth in the third quarter, surpassing even high-performing stocks like Nvidia and Palantir [2][3]. Revenue Growth Expectations - Eight S&P 500 stocks, including Expand Energy, KeyCorp, and Robinhood Markets, are projected to post over 60% revenue growth in the upcoming third-quarter earnings season [2]. - Expand Energy is anticipated to see a remarkable revenue surge of 402% to $2 billion, largely due to its acquisition of Southwestern Energy [4]. - KeyCorp's revenue is expected to jump 170% to $1.9 billion, with a projected 24% increase in EPS for 2025 [7]. - Robinhood Markets is forecasted to achieve an 83% revenue increase to $1.2 billion in the third quarter of 2025 [6]. Comparative Performance - The expected revenue growth for Expand Energy, KeyCorp, and Robinhood significantly outpaces the anticipated growth of 55.6% for Nvidia and 50.5% for Palantir [3]. - Despite the high revenue growth projections, KeyCorp's stock has only risen 8% this year, indicating a potential disconnect between growth expectations and market performance [7]. Summary of Top Growth Companies - The following companies are expected to have the highest revenue growth in Q3 2025: - Expand Energy (EXE): 402.1% - KeyCorp (KEY): 170.8% - Robinhood Markets (HOOD): 82.6% - First Solar (FSLR): 75.1% - Bunge Global (BG): 74.0% - Amcor (AMCR): 71.5% - TKO Group (TKO): 65.2% - Oneok (OKE): 63.6% [8].

Core Insights - KeyCorp has a market capitalization of $20.7 billion and operates as the holding company for KeyBank National Association, providing a wide range of retail and commercial banking services across the United States [1] Financial Performance - KeyCorp is set to announce its fiscal Q3 2025 results on October 16, with analysts predicting an EPS of $0.38, representing a 26.7% increase from $0.30 in the same quarter last year [2] - For fiscal 2025, analysts expect an EPS of $1.44, which indicates a 24.1% growth from $1.16 in fiscal 2024 [3] Stock Performance - Over the past 52 weeks, KeyCorp shares have increased by 13.9%, underperforming the S&P 500 Index's gain of 16.2% and the Financial Select Sector SPDR Fund's return of 19.3% [4] - Following stronger-than-expected Q2 2025 results, KeyCorp shares rose by 2.4%, with an EPS of $0.35, marking a 40% year-over-year increase and total revenues of $1.8 billion, a 20.9% rise [5] Analyst Ratings - The consensus view on KeyCorp stock is cautiously optimistic, with a "Moderate Buy" rating from analysts; 10 suggest a "Strong Buy," 2 a "Moderate Buy," and 12 have "Strong Sells" [6] - The average analyst price target for KeyCorp is $20.07, indicating a potential upside of 6.8% from current levels [6]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, aiding investors in selecting stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - The Momentum Score leverages price trends and earnings estimate changes to identify favorable investment timings in high-momentum stocks [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988 [7] - There are over 800 stocks rated 1 or 2, making it essential to use Style Scores to narrow down choices [8] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still face downward price trends due to negative earnings outlooks [10] Company Spotlight: KeyCorp - KeyCorp, based in Cleveland, OH, offers a range of financial services including banking and investment management across 15 states [11] - Currently rated 3 (Hold) with a VGM Score of B and a Value Style Score of B, indicating attractive valuation metrics [11][12] - KeyCorp's forward P/E ratio is 13.05, and it has seen upward revisions in earnings estimates, with a Zacks Consensus Estimate of $1.44 per share for fiscal 2025 [12]

Economic Outlook - The Federal Reserve's reduction of interest rates and resilient economic growth is creating a more favorable outlook for the banking sector [1] - Lower borrowing costs are expected to stimulate loan demand and consumer spending, while steady economic expansion will support credit quality and profitability [1] Investment Opportunities - Several S&P 500 banks, including KeyCorp, Bank of Hawaii, and Comerica, are highlighted as appealing investment opportunities due to their solid dividend yields [2] - These banks have attractive income potential and solid fundamentals, making them worthy of investor attention [2] Stock Selection Criteria - The selection of these banks was based on a Zacks Stocks Screener, identifying stocks with a dividend yield exceeding 4% and a Zacks Rank of 2 (Buy) or 3 (Hold) [3] - All three bank stocks have risen more than 10% in the past year, indicating growing market confidence in their earnings power and balance-sheet resilience [3] KeyCorp Overview - KeyCorp, a leading regional bank, offers a diverse range of financial products and services [6] - The bank is well-positioned to benefit from solid loans and deposit balances, lower interest rates, and a robust balance sheet, with expected top-line growth supported by loan demand and Fed rate cuts [7][10] - KeyCorp has a dividend yield of 4.4%, with a payout ratio of 60% and a Zacks Rank of 3 [10] Bank of Hawaii Overview - Bank of Hawaii provides a broad array of financial services in Hawaii and the Pacific Islands [11] - Revenue growth is driven by rising net interest income (NII) and fee income, with expectations for continued increases due to balance sheet actions and Fed rate cuts [12][13] - The bank has a dividend yield of 4.2%, with a payout ratio of 73% and a Zacks Rank of 2 [13] Comerica Overview - Comerica operates in key markets including Texas, California, and Michigan, focusing on financial services [14] - The bank's income generation is supported by a robust loan pipeline, Fed rate cuts, and strong fee income, with a focus on operational efficiency and strategic growth [15][16] - Comerica has a dividend yield of 4.1%, with a payout ratio of 54% and a Zacks Rank of 3 [16] Final Thoughts - Dividend-paying bank stocks like KeyCorp, Bank of Hawaii, and Comerica offer a combination of attractive income and potential growth in a favorable economic environment [17] - With yields above 4%, solid balance sheets, and strategic initiatives, these banks are well-positioned to reward shareholders [17]

Core Viewpoint - KeyCorp (KEY) is a significant player in the financial services sector with a market capitalization of $20.5 billion, providing a wide range of banking and investment services across the United States [1]. Company Overview - KeyCorp operates primarily through its Consumer Bank and Commercial Bank segments, offering retail and commercial banking products, investment management, wealth management, and capital markets services [1][2]. - The company also engages in community development financing, international banking, and advisory services [2]. Stock Performance - KeyCorp's shares have decreased by 4.9% from their 52-week high of $20.04, while the stock has returned 15.6% over the past three months, slightly underperforming the Nasdaq Composite's 15.8% increase [3]. - Year-to-date, KEY stock is up 11.2%, lagging behind the Nasdaq's 17.7% gain, and has gained 13.4% over the past 52 weeks compared to the Nasdaq's 26.4% surge [4]. - The stock has been trading above its 50-day moving average since May and above its 200-day moving average since late June [4]. Recent Financial Results - KeyCorp's shares rose by 2.4% on July 22 following stronger-than-expected Q2 2025 results, with earnings per share (EPS) of $0.35, a 40% year-over-year increase [5]. - Total revenues increased by 20.9% to $1.8 billion, driven by higher net interest income and a 10% rise in non-interest income, particularly from fee-based businesses [5]. - Improved capital ratios and sequential loan growth indicate financial strength, which offsets concerns regarding rising expenses and provisions [5]. Analyst Sentiment - Despite underperforming relative to the Nasdaq, analysts maintain a moderately optimistic outlook on KeyCorp, with a consensus rating of "Moderate Buy" from 24 analysts [6]. - The mean price target for KEY is $20.12, representing a 5.5% premium to current levels [6].

Core Insights - The current market presents a challenge for investors seeking safe places to allocate new capital, as the S&P 500 is experiencing record highs and significant rallies [1] - There are still opportunities to find relatively inexpensive stocks with above-average growth potential, particularly within the S&P 500 [2] Stock Selection - A screen identified 104 S&P 500 stocks with above-average growth and below-average price multiples, narrowing down to 86 after excluding energy and materials sectors [3][4] - T-Mobile is highlighted for its expected 19.4% earnings growth next year, trading at just over 18 times next year's earnings [4] - Royal Caribbean and Expedia are noted as strong travel stocks, with Expedia projected to grow earnings by 18% next year while trading at 13 times earnings, significantly cheaper than Booking Holdings [5] - Dollar Tree is identified as a consumer staples stock with a 15% growth rate, trading at less than 15 times next year's earnings, making it a favorable option [6] Financial Sector Opportunities - The financial sector is experiencing favorable conditions, with 34 of the 86 identified stocks coming from this sector [7] - Capital One Financial is projected to have nearly 14% earnings growth next year, trading at roughly 11 times next year's earnings [8] - American Express is expected to grow earnings by 12.6% next year, trading at less than 20 times earnings, which is cheaper than the overall S&P [9] - Citigroup is highlighted for its strong recovery under CEO Jane Fraser, with expected growth of 28% next year while trading at just 10.5 times earnings [10] - Keycorp, a regional bank, is expected to grow at 22% next year, trading at just under 11 times next year's earnings [11] Other Notable Stocks - Charles Schwab is recognized as a strong retail brokerage, while Apollo is noted for its leadership in private equity and private credit with projected earnings growth of 19% [12][13] - Insight, a biopharma company, stands out in the healthcare sector with expected earnings growth of 19% and trading at just under 12 times next year's earnings [14] - Caterpillar is noted for its strong performance, with an expected 18% earnings growth and trading at 22 times next year's earnings [15] - Dell Technologies is mentioned as a core player in AI infrastructure, while BXP, a real estate company, has rebounded after trimming its dividend to focus on growth projects [18][19] - Energy, a utility company, is highlighted for its growth potential due to infrastructure projects, including a $10 billion data center by Meta [20]

Group 1 - KeyCorp has lowered its prime lending rate to 7.25 percent from 7.50 percent, effective September 18, 2025 [1] - KeyCorp is celebrating its bicentennial in 2025, marking 200 years of service [2] - As of June 30, 2025, KeyCorp has assets of approximately $185 billion [2] Group 2 - KeyCorp operates approximately 1,000 branches and 1,200 ATMs across 15 states [2] - The company provides a range of financial services including deposit, lending, cash management, and investment services [2] - KeyCorp also offers corporate and investment banking products under the KeyBanc Capital Markets name [2] Group 3 - KeyCorp reported a net income of $387 million for the second quarter of 2025, equating to $0.35 per diluted common share [4]