Kyndryl Holdings, Inc. (KD) shares rallied 5.3% in the last trading session to close at $23.38. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16.9% loss over the past four weeks.
The stock is benefiting from improving investor sentiment around its turnaround progress, renewed buying interest ahead of earnings, and broader optimism toward IT infrastructure and services names.
This company is expected to post quarterly earnings of $0.60 per share in its upcoming report, which represents a year-over-year change of +17.7%. Revenues are expected to be $3.91 billion, up 4.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Kyndryl Holdings, Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on KD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Kyndryl Holdings, Inc. belongs to the Zacks Technology Services industry. Another stock from the same industry, Zeta Global Holdings (ZETA), closed the last trading session 2% lower at $17.37. Over the past month, ZETA has returned -25.6%.
For Zeta, the consensus EPS estimate for the upcoming report has changed -22.2% over the past month to $0.23. This represents a change of +15% from what the company reported a year ago. Zeta currently has a Zacks Rank of #3 (Hold).
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Kyndryl Holdings, Inc. (KD): Free Stock Analysis Report Zeta Global Holdings Corp. (ZETA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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