Is KeyCorp Stock Underperforming the Nasdaq?

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].