KeyCorp Labeled 'Bear of the Day'

KeyCorp, a Cleveland-based financial services company and mortgage lender, has been designated the "Bear of the Day" for July 30 by Zacks Equity Research, Chicago. The Bear of the Day is a stock expected to underperform the markets over the next three to six months. The research firm noted that KeyCorp reported a second-quarter loss from continuing operations of $2.70 per share, due mainly to a $2.43-per-share charge related to an adverse federal court ruling on a lease adjustment. The company's credit quality "worsened significantly" during the quarter, Zacks said. "Though the company has taken steps to reduce its exposure to the commercial real estate residential properties segment, we anticipate higher losses in the CRE portfolio in the coming quarters, particularly in view of its sizable exposure to the difficult markets of California and Florida," Zacks said, adding that it is maintaining its Sell rating for KeyCorp. Zacks can be found online at http://www.zacks.com, and KeyCorp can be found at http://www.key.com.