Bank stocks are on a roller-coaster ride as interest rates generally remain low but Treasury bond rates, which banks peg their loan rates to, inch higher in fits and starts. If you’re looking for a bank stock that’s setting up in a base ahead of earnings, here’s one that fits the bill: KeyCorp (KEY).
The Street will focus on its third quarter earnings results, which the Cleveland-based regional bank plans to release early on Oct. 21. KeyCorp stock is currently just below a 23.75 buy point. The entry is based on a first-stage cup without handle, a bullish indicator because early stage bases are more likely to succeed than later stage ones. KeyCorp stock traded at 22.95 Thursday afternoon, up 1.2% for the day.
KeyCorp Stock A Confirmed Market Leader
The parent of KeyBank has about 1,100 branches in 15 states. It boasts a strong 86 stock Relative Strength Rating, out of a best-possible 99, putting it in the top 14% of stocks in stock price performance. Additionally, it has a superior 91 EPS Rating, reflecting strong recent and long-term profit growth. And KeyCorp stock’s near-best 96 Composite Rating confirms it’s a market leading stock.
Meanwhile, in terms of fundamentals KeyCorp has posted rising EPS growth in each of the last four reports. Earnings rose 17%, 205% and then leapt 350% last quarter, to 72 cents per share. One important metric to check out when it reports earnings next week is sales growth. Its quarterly revenue this past year has mostly been flat with the prior year’s quarters, including a 2% dip last quarter to $1.84 billion after a mild 6% increase the quarter before that.
82% EPS Growth Seen For Year
Analysts expect KeyCorp to report its Q3 EPS grew 36% for the quarter, and they expect 82% EPS growth for the full year. Annual EPS estimates were recently revised higher.
KeyCorp stock holds the No. 2 rank among its peers in the Banks-Super Regional industry group. SVB Financial (SIVB) is the top-ranked stock in the group.
Buying a stock just ahead of earnings can be risky because you typically don’t have enough time to build a profit cushion before the latest quarterly numbers come out. Be sure to follow sound buy and sell rules to minimize your exposure.
Note: Dates for earnings reports are subject to change. Check the company’s website for any updates.
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