12 Most Undervalued Stocks to Invest in for Under $20

4) KeyCorp (NYSE:KEY)

Forward P/E as of January 17: 11.6x

Share Price as of January 17: $18.30

Number of Hedge Fund Holders: 41

KeyCorp (NYSE:KEY) operates as the holding company for KeyBank National Association which provides retail and commercial banking products and services in the US. It has been pivoting towards a more balanced growth model in consumer banking, aided by the expansion of digital banking capabilities. KeyCorp (NYSE:KEY) received a strategic investment from Scotiabank, which demonstrates a significant opportunity for growth and financial stability. This capital influx offers the company improved financial flexibility to pursue its strategic initiatives, mainly the securities portfolio repositioning.

This investment is expected to be accretive to EPS and can strengthen KeyCorp (NYSE:KEY)’s balance sheet and capital position. Furthermore, this partnership with Scotiabank is expected to potentially result in new business opportunities and synergies. The investment further underpins confidence in KeyCorp (NYSE:KEY)’s business model and future prospects, which is expected to positively influence market perception and investor sentiment.

Furthermore, Scotiabank’s global presence, mainly in Latin America and international markets, offers KeyCorp (NYSE:KEY) opportunities to further expand its reach beyond the US by leveraging Scotiabank’s network. This is expected to result in facilitating cross-border business, including the expansion of KeyCorp (NYSE:KEY)’s commercial banking services to international markets, mainly where Scotiabank possesses strong ties.  Wells Fargo & Company increased its target price from $20.00 to $22.00, giving an “Overweight” rating on 15^th November.