Kyndryl Holdings, Inc. (KD) closed at $39.12 in the latest trading session, marking a +2.11% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.4%. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.24%.
Heading into today, shares of the company had lost 8.33% over the past month, lagging the Business Services sector's loss of 0.55% and the S&P 500's gain of 4.61%.
The investment community will be paying close attention to the earnings performance of Kyndryl Holdings, Inc. in its upcoming release. The company is slated to reveal its earnings on August 4, 2025. The company's upcoming EPS is projected at $0.37, signifying a 184.62% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.8 billion, indicating a 1.58% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.22 per share and revenue of $15.45 billion. These totals would mark changes of +86.55% and +2.63%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Kyndryl Holdings, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.55% increase. Kyndryl Holdings, Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Kyndryl Holdings, Inc. is presently being traded at a Forward P/E ratio of 17.26. For comparison, its industry has an average Forward P/E of 21.43, which means Kyndryl Holdings, Inc. is trading at a discount to the group.
Investors should also note that KD has a PEG ratio of 0.69 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Technology Services stocks are, on average, holding a PEG ratio of 1.58 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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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