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Kyndryl Holdings, Inc. (KD) Stock Drops Despite Market Gains: Important Facts to Note

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Kyndryl Holdings, Inc. (KD - Free Report) ended the recent trading session at $34, demonstrating a -0.87% swing from the preceding day's closing price. This change lagged the S&P 500's 0.49% gain on the day. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw an increase of 1.22%.

Prior to today's trading, shares of the company had lost 14.25% over the past month. This has lagged the Business Services sector's loss of 10.16% and the S&P 500's loss of 8.15% in that time.

The upcoming earnings release of Kyndryl Holdings, Inc. will be of great interest to investors. The company's upcoming EPS is projected at $0.52, signifying a 5300% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.78 billion, down 1.9% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.17 per share and revenue of $15.03 billion, indicating changes of +1163.64% and -6.34%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Kyndryl Holdings, Inc. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Kyndryl Holdings, Inc. is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Kyndryl Holdings, Inc. is currently being traded at a Forward P/E ratio of 29.32. This denotes a premium relative to the industry's average Forward P/E of 21.3.

We can additionally observe that KD currently boasts a PEG ratio of 5.86. 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. Technology Services stocks are, on average, holding a PEG ratio of 1.68 based on yesterday's closing prices.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning it in the top 30% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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