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Kyndryl Holdings, Inc. (KD) Rises Higher Than Market: Key Facts

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Kyndryl Holdings, Inc. (KD - Free Report) closed at $26.95 in the latest trading session, marking a +1.2% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 1.11%. Elsewhere, the Dow gained 1.64%, while the tech-heavy Nasdaq added 1.03%.

Heading into today, shares of the company had gained 2.23% over the past month, outpacing the Business Services sector's loss of 2.82% and the S&P 500's loss of 1.16% in that time.

Investors will be eagerly watching for the performance of Kyndryl Holdings, Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 31, 2024. In the meantime, our current consensus estimate forecasts the revenue to be $3.78 billion, indicating a 9.86% decline compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.38 per share and a revenue of $15.38 billion, representing changes of +1354.55% and -4.21%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kyndryl Holdings, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 11.24% upward. Kyndryl Holdings, Inc. presently features a Zacks Rank of #2 (Buy).

From a valuation perspective, Kyndryl Holdings, Inc. is currently exchanging hands at a Forward P/E ratio of 19.33. This signifies a discount in comparison to the average Forward P/E of 23.04 for its industry.

We can additionally observe that KD currently boasts a PEG ratio of 3.87. 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. The average PEG ratio for the Technology Services industry stood at 1.48 at the close of the market yesterday.

The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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