Cheap Stocks: KeyCorp. (KEY)
KEY Stock Price: $13.60
KeyCorp. (KEY) was laid low during the financial crisis, as lax lending standards and a loss of focus led it to take a $5 billion bath for bad loans.
Since then, however, the bank has remade itself into a leaner operation with tougher standards and a renewed focus on being what it really is: a regional bank.
KEY stock is up a tiny 1% for the year-to-date, but a return to higher earnings should allow for multiple expansion. KEY is expected to post a profit drop in the current quarter, but after that it’s all accelerating growth on the bottom line.
Shares cost less than $15 a pop, so that makes it easy to build a position in KEY as a retail investor. The P/E of 13 and P/B of 1.2 are bargains too. And, at 1.9%, the yield on the dividend has room to grow.