Back to top

Image: Bigstock

Kyndryl Holdings, Inc. (KD) Outperforms Broader Market: What You Need to Know

Read MoreHide Full Article

The most recent trading session ended with Kyndryl Holdings, Inc. (KD - Free Report) standing at $23.01, reflecting a +1.37% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.4%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.6%.

Shares of the company have depreciated by 2.2% over the course of the past month, underperforming the Business Services sector's gain of 4.05% and the S&P 500's gain of 1.71%.

The upcoming earnings release of Kyndryl Holdings, Inc. will be of great interest to investors. The company is expected to report EPS of $0.09, up 280% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $3.7 billion, reflecting a 9.14% fall from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.29 per share and revenue of $15.28 billion. These totals would mark changes of +1272.73% and -4.84%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Kyndryl Holdings, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.91% lower within the past month. Right now, Kyndryl Holdings, Inc. possesses a Zacks Rank of #3 (Hold).

Investors should also note Kyndryl Holdings, Inc.'s current valuation metrics, including its Forward P/E ratio of 17.63. This represents a discount compared to its industry's average Forward P/E of 24.17.

One should further note that KD currently holds a PEG ratio of 3.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KD's industry had an average PEG ratio of 1.54 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 25% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Kyndryl Holdings, Inc. (KD) - free report >>

Published in