Kyndryl Holdings, Inc. (KD) ended the recent trading session at $32.73, demonstrating a +1.02% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.85%. On the other hand, the Dow registered a gain of 1.36%, and the technology-centric Nasdaq increased by 0.72%.
The stock of company has risen by 6.06% in the past month, leading the Business Services sector's gain of 1.01% and the S&P 500's gain of 2.38%.
The upcoming earnings release of Kyndryl Holdings, Inc. will be of great interest to investors. It is anticipated that the company will report an EPS of $0.33, marking a 3200% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.82 billion, indicating a 1.3% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.22 per share and a revenue of $15.68 billion, representing changes of +86.55% and +4.17%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kyndryl Holdings, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Kyndryl Holdings, Inc. boasts a Zacks Rank of #4 (Sell).
Investors should also note Kyndryl Holdings, Inc.'s current valuation metrics, including its Forward P/E ratio of 14.57. This expresses a discount compared to the average Forward P/E of 22.17 of its industry.
We can also see that KD currently has a PEG ratio of 2.91. 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. The Technology Services industry had an average PEG ratio of 1.87 as trading concluded yesterday.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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