2-Star Stocks Poised to Plunge: KeyCorp?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, financial holding company KeyCorp (NYS: KEY) has received a distressing two-star ranking.
With that in mind, let's take a closer look at KeyCorp's business and see what CAPS investors are saying about the stock right now.
KeyCorp facts
Headquarters (Founded) | Cleveland (1849) |
Market Cap | $7.9 billion |
Industry | Regional banks |
Trailing-12-Month Revenue | $4.4 billion |
Management | Chairman/CEO Beth Mooney (since 2011) |
Return on Equity (Average, Past 3 Years) | (1.6%) |
Dividend Yield | 1.4% |
Competitors | Bank of America |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 30% of the 506 members who have rated KeyCorp believe the stock will underperform the S&P 500 going forward.
This past fall, one of those bears, DollarDaze100, cautioned Fools about banking on KeyCorp:
Hard to get excited about this fragmented franchise with a very expensive capital markets product suite for the size bank it is. Historically a wannabe investment bank and [commercial real estate] juggernaut but just can't generate sustainable earnings. Retail franchise is scattered with no real dominant positions other than home market, Cleveland. ... Historically has struggled with expense structure and has difficulty reducing efficiency ratio to anything less than middle of the peer pack. With expenses high and growth limited the stock will be too.
What do you think about KeyCorp, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Bank of America. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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