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
TheStreet Open House

4 Mid-Cap Bank Stock Value Plays From UBS

KEY ChartKEY data by YCharts

3. KeyCorp

Shares of KeyCorp (KEY) of Cleveland closed at $9.85 Tuesday, returning 18% this year, following a 12% return last year. The shares trade for 1.1 times tangible book value and for 10.3 times the consensus 2014 EPS estimate of 96 cents. The consensus 2013 EPS estimate is 86 cents.

Following the completion of the Federal Reserve's annual stress tests, KeyCorp on March 14 announced raised its quarterly dividend by half a penny to 5.5 cents a share and also said its board of directors had authorized a new program for share repurchases of up to $426 million. Based on the new quarterly payout, the shares have a dividend yield of 2.23%.

The company will announce its first-quarter results on April 18. The consensus among analysts is for KeyCorp to report a profit of 20 cents a share, declining from 22 cents in the fourth quarter, and matching its results for the first quarter of 2013.

Scinicariello's price target for KeyCorp is $11 and he estimates the company will report first-quarter EPS of 22 cents. The analyst on Tuesday lowered his 2013 EPS estimate for KeyCorp to $1.04 from $1.10 and lowered his 2014 estimate to $1.20 from $1.25, "to conservatively account for the timing of expense initiatives."

"KEY has several earnings levers including significant excess capital, funding improvement, market share opportunities, expense reduction, and franchise optimization," Scinicariello wrote, adding that the bank has an opportunity to expand its net interest margin, with $5 billion in higher-cost CDs maturing this year.

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

3 of 5

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 17,067.56 -30.89 -0.18%
S&P 500 2,002.28 -1.09 -0.05%
NASDAQ 4,598.1880 +17.9170 0.39%

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