Kyndryl Holdings, Inc. (KD) closed at $38.31 in the latest trading session, marking a -1.92% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.07%. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.18%.
The company's stock has dropped by 5.36% in the past month, falling short of the Business Services sector's gain of 1.45% and the S&P 500's gain of 5.71%.
Market participants will be closely following the financial results of Kyndryl Holdings, Inc. in its upcoming release. The company plans to announce its earnings on August 4, 2025. In that report, analysts expect Kyndryl Holdings, Inc. to post earnings of $0.37 per share. This would mark year-over-year growth of 184.62%. Meanwhile, our latest consensus estimate is calling for revenue of $3.8 billion, up 1.58% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.18 per share and revenue of $15.45 billion, which would represent changes of +83.19% and +2.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Kyndryl Holdings, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.42% higher. As of now, Kyndryl Holdings, Inc. holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Kyndryl Holdings, Inc. is currently exchanging hands at a Forward P/E ratio of 17.95. This indicates a discount in contrast to its industry's Forward P/E of 21.3.
Meanwhile, KD's PEG ratio is currently 0.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. KD's industry had an average PEG ratio of 1.57 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 82, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Kyndryl Holdings, Inc. (KD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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