Key statistics

Is KEY a good stock to buy in 2026?

KeyCorp (KEY) presents a mixed financial picture, with its P/E ratio of 12.05x indicating it is significantly cheaper than the Banks – Regional sector average of 22.1x, suggesting potential value. However, a DCF fair value of $-31.99, which is -247.9% below the current price, flags a strong overvaluation based on this model. Analyst sentiment remains largely positive with 60.8% recommending a “Buy,” contributing to a “Buy” consensus, but investors should conduct thorough due diligence beyond these metrics.

2026 KEY price scenarios

Based on analyst consensus of $23.33 from 51 analysts. Not a prediction by Alert Invest.

About KeyCorp (KEY)

KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking products and services in the United States. It operates in two segments, Consumer Bank and Commercial Bank. The company offers various deposits, investment products and services; and personal finance and financial wellness, student loan refinancing, mortgage and home equity, lending, credit card, treasury, business advisory, wealth management, asset management, investment, cash management, portfolio management, and trust and related services to individuals and small and medium-sized businesses.

Under the leadership of CEO Christopher Marrott Gorman, KeyCorp, with its approximately 16,989 dedicated employees, maintains a prominent position within the Financial Services sector, specifically among Banks – Regional. The company distinguishes itself through its comprehensive approach to both retail and commercial banking, emphasizing client relationships and a robust regional footprint across the United States. Its strengths include a diversified service offering and a commitment to local market engagement, contributing to its sustained presence and strategic growth within a competitive banking landscape. Investing in KEY stock means investing in a regional banking powerhouse with a strong community focus.

KEY competitive moat and business analysis

KeyCorp demonstrates a notable competitive advantage, particularly highlighted by its net margin of 17.35%. This healthy margin indicates efficient operations and strong pricing power within its core banking services. While Return on Equity (ROE) and Return on Invested Capital (ROIC) data are currently unavailable for direct comparison, the solid net margin suggests KeyCorp possesses the ability to convert a significant portion of its revenue into profit. This efficiency is a key component of its competitive moat, allowing it to withstand market pressures better than less efficient peers in the Banks – Regional industry.

Although specific segment data for fiscal year 2025 is not detailed in the provided information beyond the general symbol ‘KEY’ and currency ‘USD’, KeyCorp’s operations typically span Consumer Bank and Commercial Bank segments. These divisions encompass a broad array of services from consumer deposits and lending to commercial advisory and treasury solutions. Geographically, KeyCorp’s presence has historically been concentrated within the United States, as indicated by its fiscal year 2010 geographical data. This regional focus allows for deeper market penetration and tailored service offerings, which can enhance customer loyalty and local market share, a crucial factor for the long-term prospects of KEY stock.

KeyCorp has shown robust revenue growth, with a year-over-year increase of 23.6%. This impressive growth indicates a strong upward trend in its business activities and an ability to expand its operations effectively, despite the dynamic environment of the financial services sector. While a specific transcript quote highlighting the moat trend is not available, this substantial revenue growth, coupled with solid margins, suggests that KeyCorp is effectively defending and potentially expanding its competitive position. This performance is a positive sign for the long-term durability of KeyCorp’s business model and could influence the future KEY valuation positively.

When evaluating KeyCorp against its peers, understanding its relative standing is crucial. Comparing KEY stock performance and financials against others in the Banks – Regional industry like BAP, BCH, and CFG provides valuable context. These comparisons help investors gauge KeyCorp’s efficiency, growth trajectory, and valuation relative to its direct competitors. For a detailed side-by-side analysis of KeyCorp’s valuation, growth metrics, and analyst ratings versus these top financial services competitors, investors are encouraged to explore comprehensive peer comparison tools.

KeyCorp analyst rating

Based on 51 analysts. 60.8% rate KEY Buy or Strong Buy.

Is KEY undervalued or overvalued?

Assessing KEY valuation reveals a compelling narrative. KeyCorp’s P/E ratio stands at 12.05x, which is significantly lower than the Banks – Regional sector average of 22.1x. This substantial discount suggests that KEY stock might be undervalued relative to its peers on an earnings multiple basis, potentially offering an attractive entry point for value-oriented investors. The P/B ratio of 1.17x and P/S ratio of 2.1x also present as relatively cheap, further supporting a potentially favorable valuation perspective.

However, the Discounted Cash Flow (DCF) model presents a contrasting view, indicating a fair value of $-31.99, which implies a staggering -247.9% deviation from the current price. This highly negative DCF suggests that, based on future cash flow projections, KEY stock is considerably overvalued. While DCF models can be sensitive to inputs, this significant discrepancy warrants caution. Investors considering if is KEY a good stock should weigh the apparent P/E discount against the stark warning from the DCF analysis.

KEY financial health & key metrics

For value investors, KEY stock presents a complex profile. The P/E ratio indicates a clear discount compared to the sector, suggesting potential undervaluation based on current earnings. Furthermore, KeyCorp exhibits robust financial health with strong net margins (17.35%) and impressive revenue growth (23.6%), alongside a healthy Free Cash Flow (FCF) yield of 8.93%. While the debt-to-equity ratio of 0.85x is moderate, the highly negative DCF valuation of $-31.99 stands out as a significant concern, signaling potential overvaluation from a future cash flow perspective. Investors should deeply analyze these conflicting signals to determine if KeyCorp aligns with their value investment criteria.

KeyCorp earnings history & next report

Next earnings: 2027-01-20. EPS estimate: $0.4879.

Investors will be closely watching KeyCorp’s next earnings report, scheduled for January 20, 2027. The estimated EPS for this quarter is $0.4879. Key areas of focus will include whether the company meets or exceeds this EPS estimate, its commentary on net interest margin trends in the current interest rate environment, and any updates on loan growth and credit quality. Furthermore, management’s outlook on forward revenue and profitability will be crucial in shaping investor sentiment around KEY stock performance in the coming year.

KEY daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

KEY insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent KEY analyst rating changes

KeyCorp stock news today

How does KEY compare to its peers?

Understanding how KeyCorp (KEY) stacks up against its industry counterparts is essential for a comprehensive investment perspective. Within the Banks – Regional sector, BAP (Credicorp Ltd.), BCH (Credicorp Capital Ltd.), and CFG (Citizens Financial Group, Inc.) are relevant peers offering similar financial services. A direct comparison allows investors to assess KEY stock’s relative strengths, weaknesses, and overall market positioning in terms of valuation, growth, and operational efficiency.

FAQ — KeyCorp (KEY) stock