Jim Cramer Recommends Buying KeyCorp for its CEO and High Yield

Jim Cramer recommends buying KeyCorp due to its CEO Chris Gorman and 4.7% yield. Cramer believes the company is in expansion mode and sees the stock as a good investment, especially with its high yield.

Jim Cramer, a prominent financial analyst, has recommended KeyCorp (NYSE:KEY) as a strong buy, highlighting the company's CEO Chris Gorman and its 4.7% yield. According to Cramer, KeyCorp is in expansion mode, making it an attractive investment, especially with its high yield. This article explores the reasons behind Cramer's recommendation and the financial health of KeyCorp.

KeyCorp's Financial Performance

KeyCorp's second-quarter 2025 earnings report showed strong performance. The company reported revenue of US$1.69 billion, a 20% increase from the same period last year. Net income increased by 63% to US$387.0 million, and earnings per share (EPS) rose to US$0.35, up from US$0.25 in the previous year. The company's profit margin improved to 23%, up from 17% in the same period last year. These results indicate robust financial health and growth prospects [4].

Analyst Views and Fundamentals

Analysts have mixed views on KeyCorp, with a simple average rating of 4.00 and a performance-weighted rating of 2.50. Despite the mixed analyst ratings, institutional fund flows have been positive, with large and extra-large institutional inflows particularly strong. KeyCorp's return on equity (ROE) is 2.18%, return on assets (ROA) is 0.23%, gross profit margin is 49.94%, and net income to revenue is 80.15%. These figures suggest moderate financial health, with room for improvement [2].

Technical Analysis

Technical analysis of KeyCorp indicates a weak trend with a 4.27 internal diagnostic score. Key signals over the last 5 days include overbought conditions, oversold conditions, and bearish engulfing patterns. These signals suggest a volatile and unclear trend, with bearish signals dominant. The market is in a weak technical state with unclear direction, requiring a clearer breakout before positioning [2].

Momentum and Zacks Style Scores

KeyCorp has a Momentum Style Score of A and a VGM Score of B, indicating strong momentum and good value-growth-momentum characteristics. The stock has gained 14.2% in the last one-year period and has an average earnings surprise of 8.1%. Six analysts revised their earnings estimate upwards in the last 60 days, with the Zacks Consensus Estimate increasing to $1.43 per share for 2025. These indicators suggest that KeyCorp is a high-momentum stock with favorable earnings fundamentals [3].

Conclusion

Jim Cramer's recommendation of KeyCorp as a strong buy is based on the company's expansion mode, high yield, and strong financial performance. While technical analysis indicates a volatile and unclear trend, the company's fundamentals, institutional fund flows, and momentum scores suggest upside potential. Investors should carefully consider these factors and perform their own due diligence before making investment decisions. KeyCorp's upcoming earnings report will provide further insight into its continued performance and potential trend reversal [2].

References:
[1] https://www.cnbc.com/2025/08/07/cramers-lightning-round-boeing-is-a-buy.html
[2] https://www.ainvest.com/news/stock-analysis-keycorp-outlook-navigating-volatility-mixed-signals-2508/
[3] https://finance.yahoo.com/news/why-keycorp-key-top-momentum-135002706.html
[4] https://simplywall.st/stocks/us/banks/nyse-key/keycorp/news/keycorp-second-quarter-2025-earnings-beats-expectations