A Valuation Showdown? – KeyCorp (KEY), The Wendy’s Company (WEN)

KeyCorp (NYSE:KEY) is offering a substantial bargain with a P/S ratio at 3.43. The broad KeyCorp industry has an average P/S ratio of 5.97, which represents discount over the sector’s 5.98. In the past 13-year record, this ratio went down as low as 0.59 and as high as 3.92. Also, it is down from 56% of the total 1570 rivals across the globe.

KEY traded at an unexpectedly low level on 06/19/2018 when the stock experienced a 0.64% gain to a closing price of $20.57. The company saw 6.59 million shares trade hands over the course of the day. Given that its average daily volume over the 30 days has been 9.15 million shares a day, this signifies a pretty significant change over the norm.

KeyCorp (KEY) Analyst Gushes

Analysts are speculating a 26.4% move, based on the high target price ($26) for the shares that is set to reach in the next 12 months. The analysts, on average, are forecasting a $23.31 price target, but the stock is already up 26.35% from its recent lows. However, the stock is trading at -8.17% versus recent highs ($22.40). Analysts believe that we could see stock price minimum in the $20 range (lowest target price), allowing for another -2.77% drop from its current position. Leading up to this report, we have seen a 1.58% rise in the stock price over the last 30 days and a -1.72% decline over the past 3 months. Overall, the share price is up 1.98% so far this year. Additionally, KEY had a day price range of $20.23 to $20.615.

KeyCorp (KEY) Price Potential

Heading into the stock price potential, KeyCorp needs to grow just 16.67% to cross its median price target of $24. In order to determine directional movement, the 50-day and 200-day moving averages for KeyCorp (NYSE:KEY) are $20.16 and $20.4. Given that liquidity is king in short-term, KEY is a stock with 1.06 billion shares outstanding that normally trades 1.13% of its float. The stock price recently experienced a 5-day loss of -0.34% with 0.42 average true range (ATR). KEY has a beta of 1.03 and RSI is 56.74.

Investors also need to beware of the The Wendy’s Company (NASDAQ:WEN) valuations. The stock trades on a P/S of 3.24, which suggests that the shares are attractive compared with peers. The broad The Wendy’s Company industry has an average P/S ratio of 4.15, which is significantly better than the sector’s 3662.74. In the past 13-year record, this ratio went down as low as 0.11 and as high as 3.53. Also, it is down from 86% of the total 318 rivals across the globe.

The Wendy’s Company (WEN)’s Lead Over its Technicals

The Wendy’s Company by far traveled 30.2% versus a 1-year low price of $13.57. The share price was last seen -0.23% lower, reaching at $17.67 on Jun. 19, 2018. At recent session, the prices were hovering between $17.52 and $17.73. This company shares are 7.64% off its target price of $19.02 and the current market capitalization stands at $4.01B. The recent change has given its price a 4.5% lead over SMA 50 and -1.89% deficit over its 52-week high. The stock witnessed 8.21% gains, 2.02% gains and 13.93% gains for the 1-month, 3-month and 6-month period, respectively. To measure price-variation, we found WEN’s volatility during a week at 1.91% and during a month it has been found around 2.14%.

The Wendy’s Company (NASDAQ:WEN) Intraday Metrics

The Wendy’s Company (WEN) exchanged hands at an unexpectedly low level of 2.29 million shares over the course of the day. Noting its average daily volume at 3.5 million shares each day over the month, this signifies a pretty significant change over the norm.

The Wendy’s Company Target Levels

The market experts are predicting a 24.5% rally, based on the high target price ($22) for The Wendy’s Company shares that is likely to be hit in the 52 weeks. Analysts anticipate that traders could see stock price minimum in the $15.5 range (lowest target price). If faced, it would be a -12.28% drop from its current position. Overall, the share price is up 7.61% year to date.