KeyCorp (KEY): Rising Earnings

KeyCorp (KEY) is a large retail and commercial bank that’s based in Cleveland, OH. The company has about $140 billion in assets. Revenue is expected to grow about 20% in 2017.

Wall Street expects KeyCorp’s earnings per share (EPS) to grow by 18.8% and 17.3% in 2017 and 2018, with corresponding P/Es of 14.0 and 12.0. In an analysis of a dozen famous banks that I published for subscribers to Cabot Undervalued Stocks Advisor on June 12, KeyCorp had far more attractive earnings growth and valuation than 10 of the other bank stocks.

The company historically announces an annual dividend increase in the middle of May.

KEY has traded between about 16.5 and 19 since mid-November. Many financial stocks are breaking out of six-month trading ranges this month, and KEY appears immediately ready to follow suit. KEY could appeal to growth investors, dividend investors, value investors and traders. And as a reminder, your favorite tech stocks do not have the numbers to support any of those investment styles, except for the occasional dividend.

It’s time to get a jump on a major market move, by shifting some portfolio dollars out of tech stocks and into financial stocks. Test the waters. Move just one stock, and as you relax about the prospect of earning capital gains in KeyCorp., come visit Cabot Undervalued Stocks Advisor for ideas on additional excellent undervalued growth stocks.

And just so you know that I’m putting my money where my mouth is, I sold four Nasdaq stocks this year within the Cabot Undervalued Stocks Advisor portfolios, precisely because they were overvalued: Amazon.com (AMZN), ASML Holding (ASML), Adobe Systems (ADBE) and Applied Materials (AMAT). Those portfolios now hold seven financial stocks. Join us by clicking here!

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