Kyndryl Holdings, Inc. (KD) closed the most recent trading day at $30.51, moving +1.63% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.06%. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq increased by 0.39%.
The stock of company has fallen by 6.22% in the past month, lagging the Business Services sector's gain of 0.95% and the S&P 500's gain of 3.94%.
The investment community will be paying close attention to the earnings performance of Kyndryl Holdings, Inc. in its upcoming release. The company is forecasted to report an EPS of $0.39, showcasing a 3800% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $3.84 billion, up 1.78% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.2 per share and revenue of $15.65 billion, indicating changes of +84.87% and +3.92%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Kyndryl Holdings, Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.28% fall in the Zacks Consensus EPS estimate. As of now, Kyndryl Holdings, Inc. holds a Zacks Rank of #5 (Strong Sell).
Investors should also note Kyndryl Holdings, Inc.'s current valuation metrics, including its Forward P/E ratio of 13.63. For comparison, its industry has an average Forward P/E of 22.1, which means Kyndryl Holdings, Inc. is trading at a discount to the group.
We can also see that KD currently has a PEG ratio of 2.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.83.
