Cleveland, Ohio-based KeyCorp (KEY) operates as the holding company for KeyBank which provides various retail and commercial banking products and services. With a market cap of $17.2 billion, KeyCorp operates as one of the largest regional banking companies in the United States.

Companies worth $10 billion or more are generally described as "large-cap stocks," KeyCorp fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the regional banking industry. It provides investment management, banking, consumer finance and investment banking products and services to individuals as well as corporations.

Despite its strengths, KeyCorp has plunged 13.3% from its 52-week high of $20.04 touched on Nov. 25. KEY gained 4.5% over the past three months, lagging behind the Financial Select Sector SPDR Fund’s (XLF) 8.7% surge during the same time frame.

KeyCorp has underperformed the financial sector over the longer term as well. Although KEY gained 24.8% over the past six months outperforming XLF’s 17.8% gains during the same time frame, its 21.6% surge over the past 52 weeks has underperformed XLF’s 31.2% returns over the past year.

To confirm the bullish trend, KEY has traded mostly above its 200-day moving average over the past year and above its 50-day moving average since mid-July with some fluctuations.

KeyCorp's stock experienced a 2.5% decline after the release of its Q3 earnings on Oct. 17 as the company’s earnings took a significant hit, attributed to the previously communicated securities portfolio repositioning, which is expected to enhance future earnings, capital, and liquidity. The bank reported a net loss to shareholders of $446 million, a stark contrast to the $267 million net income reported in the year-ago quarter. However, this downturn was anticipated, and the non-GAAP EPS adjusted for non-recurring items of $0.30 exceeded analysts’ expectations by 11.1%.

On a more positive note, KeyCorp's adjusted net interest income grew by 4.4% year-over-year, reaching $964 million, benefiting from the maturation of a significant portion of low-yielding securities and swaps. The company’s credit risk profile and expenses remained stable, and KeyCorp remains optimistic about the future trajectory of its business and its ability to drive sustainable value for stakeholders.

KeyCorp has substantially outpaced its peer Truist Financial Corporation’s (TFC) 17.4% gains over the past six months and 19.7% returns over the past year.

Among the 18 analysts covering the KEY stock, the consensus rating is a “Moderate Buy.” Its mean price target of $20 indicates a 15.1% upside potential from current price levels.