Kyndryl Holdings, Inc. (KD) closed at $28.89 in the latest trading session, marking a -1.13% move from the prior day. This change was narrower than the S&P 500's 2.36% loss on the day. Meanwhile, the Dow lost 2.48%, and the Nasdaq, a tech-heavy index, lost 2.55%.
Heading into today, shares of the company had lost 15.48% over the past month, lagging the Business Services sector's loss of 1.14% and the S&P 500's loss of 5.6% in that time.
Investors will be eagerly watching for the performance of Kyndryl Holdings, Inc. in its upcoming earnings disclosure. On that day, Kyndryl Holdings, Inc. is projected to report earnings of $0.52 per share, which would represent year-over-year growth of 5300%. Simultaneously, our latest consensus estimate expects the revenue to be $3.78 billion, showing a 1.9% drop compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for Kyndryl Holdings, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Kyndryl Holdings, Inc. holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Kyndryl Holdings, Inc. has a Forward P/E ratio of 14.06 right now. Its industry sports an average Forward P/E of 15.94, so one might conclude that Kyndryl Holdings, Inc. is trading at a discount comparatively.
Meanwhile, KD's PEG ratio is currently 2.81. 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 average PEG ratio for the Technology Services industry stood at 1.39 at the close of the market yesterday.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 60, placing it within the top 25% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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