In the latest trading session, Kyndryl Holdings, Inc. (KD) closed at $42.63, marking a -1.8% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, lost 0.92%.
The stock of company has risen by 7.53% in the past month, leading the Business Services sector's loss of 0.48% and the S&P 500's gain of 5.22%.
Market participants will be closely following the financial results of Kyndryl Holdings, Inc. in its upcoming release. The company is expected to report EPS of $0.48, up 269.23% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $3.85 billion, showing a 3.09% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.17 per share and revenue of $15.64 billion, which would represent changes of +82.35% and +3.86%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Kyndryl Holdings, Inc. boasts a Zacks Rank of #3 (Hold).
Investors should also note Kyndryl Holdings, Inc.'s current valuation metrics, including its Forward P/E ratio of 19.99. This represents a discount compared to its industry average Forward P/E of 21.32.
We can additionally observe that KD currently boasts a PEG ratio of 0.8. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.52.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 44, placing it within the top 18% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kyndryl Holdings, Inc. (KD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
