Kyndryl Holdings, Inc. (KD) closed at $30.62 in the latest trading session, marking a -2.89% move from the prior day. This change lagged the S&P 500's 0.5% loss on the day. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.5%.
The stock of company has risen by 0% in the past month, leading the Business Services sector's loss of 0.74% and undershooting the S&P 500's gain of 2.74%.
The investment community will be closely monitoring the performance of Kyndryl Holdings, Inc. in its forthcoming earnings report. 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. At the same time, our most recent consensus estimate is projecting a revenue of $3.82 billion, reflecting a 1.3% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.21 per share and revenue of $15.68 billion, indicating changes of +85.71% and +4.17%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Kyndryl Holdings, Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.73% lower. Right now, Kyndryl Holdings, Inc. possesses a Zacks Rank of #4 (Sell).
With respect to valuation, Kyndryl Holdings, Inc. is currently being traded at a Forward P/E ratio of 14.27. This represents a discount compared to its industry average Forward P/E of 21.57.
Meanwhile, KD's PEG ratio is currently 2.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.87.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 35% of over 250 industries.
