KeyCorp: There Are Legitimate Headwinds But The Bank Is Properly Positioned

Summary:

*KeyCorp's stock has been a major disappointment so far in 2020 and investors should expect more of the same for the next few quarters.

*However, KeyCorp has great long-term business prospects, and its management team has the bank properly positioned for the future.

*I am long KeyCorp, and I have no plans to reduce my position in the near future.

KeyCorp's ($KEY) stock performance has been lackluster for a significant period of time, and it has been pretty much the same story so far in 2020. To this point, KEY shares have underperformed the broader market by ~30 percentage points over the first 3+ months of the current year.

Poor investor sentiment for the financial sector (and I should note for good reason) has wreaked serious havoc on KeyCorp's stock price, along with many other financial institutions, but I believe that this bank is worthy of investment dollars at today's price. Yes, it will likely take time for KeyCorp's story to play out given the current headwinds but that does not mean that investors should jump ship.