This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

10 Bank Stocks You Need to Watch During Earnings Season (Update 1)

8. KeyCorp
Shares of KeyCorp (KEY) of Cleveland closed at $7.74 Friday, returning 2% year-to-date, following a 12% decline during 2011.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Based on a quarterly payout of five cents, the shares have a dividend yield of 2.58%.

The shares trade for 0.9 times tangible book value, and for 9.6 times the consensus 2013 EPS estimate of 81 cents. The consensus 2012 EPS estimate is 77 cents.

The company during the first quarter authorized up to $344 million in share repurchases, beginning in the second quarter.

KeyCorp will report its second-quarter results on July 19, with a consensus estimate of 19 cents a share, declining from EPS 20 cents the previous quarter and 25 cents a year earlier, when the company transferred $8 million from loan loss reserves, rather than simply allowing them to decline in the improving credit environment.

The company stands out as being one of the few among large-cap industry players that analysts see being well-positioned for an increase in its net interest margin over coming quarters.

UBS analyst Stephen Scinicariello rates KeyCorp a "Buy" with a $10 price target, matching the second-quarter consensus EPS estimate, while estimating the company will earn 83 cents a share for all of 2012 and 95 cents a share in 2013. The analyst said on June 25 that "KEY has opportunities to increase its [net interest margin] as higher costing CDs and liabilities are further reduced." For the second quarter, UBS "conservatively" projects "a flat NIM at 3.16% but a ramp to 3.23% by 4Q12." Expected redemptions of $700 million in trust preferred shares during the third quarter should "be 5% accretive on an annualized basis." UBS projects roughly "4% [loan] growth for 2012," and Scinicariello said "outperformance in this area would be a significant positive, in our view."

The analyst expects "$127.5MM of buybacks this quarter."

Interested in more on KeyCorp? See TheStreet Ratings' report card for this stock.

4 of 11

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs