KeyCorp: Tough Sledding, But I See A Clear Path Ahead

Summary:

• KeyCorp's stock has significantly underperformed the broader market so far in 2020.

• The bank reported Q3 2020 results that were actually well-received by the market (outside of its net interest margin), unlike most of the other banks that I follow.

• The operating environment for KeyCorp will be challenging through at least the remainder of 2020, but I see the backdrop improving in early 2021.

• We're long KeyCorp, and we have no plans to reduce our stake in the near future.

KeyCorp's ($KEY) stock has significantly underperformed the broader market over the last year, and it has been pretty much the same story so far in 2020.

The COVID-19 (and low interest rate) environment is going to be a significant headwind for KeyCorp, and the other regional banks, through at least the end of 2020 but I think that investors with a time horizon longer than a year or two should seriously consider staying the course.

Read more here.