Kyndryl Holdings, Inc. (KD) closed the most recent trading day at $24.88, moving +1.18% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.55% for the day. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 0.91%.
Heading into today, shares of the company had lost 9.86% over the past month, lagging the Business Services sector's loss of 2.82% and the S&P 500's gain of 0.71%.
The investment community will be paying close attention to the earnings performance of Kyndryl Holdings, Inc. in its upcoming release. The company is predicted to post an EPS of $0.6, indicating a 17.65% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.91 billion, indicating a 4.51% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.23 per share and a revenue of $15.61 billion, indicating changes of +87.39% and +3.66%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kyndryl Holdings, Inc. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Kyndryl Holdings, Inc. is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Kyndryl Holdings, Inc. is currently exchanging hands at a Forward P/E ratio of 11.01. This indicates a discount in contrast to its industry's Forward P/E of 16.87.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow KD in the coming trading sessions, be sure to utilize 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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