Yahoo Finance At US$21.53, Is It Time To Buy KeyCorp (NYSE:KEY)?
KeyCorp (NYSE:KEY) saw a decent share price growth in the teens level on the NYSE over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine KeyCorp’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
See our latest analysis for KeyCorp
What’s the opportunity in KeyCorp?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 1.57% below my intrinsic value, which means if you buy KeyCorp today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $21.87, then there’s not much of an upside to gain from mispricing. In addition to this, it seems like KeyCorp’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
Can we expect growth from KeyCorp?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 42.43% over the next couple of years, the future seems bright for KeyCorp. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? KEY’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on KEY, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on KeyCorp. You can find everything you need to know about KeyCorp in the latest infographic research report. If you are no longer interested in KeyCorp, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
