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Kyndryl Holdings, Inc. (KD) Outpaces Stock Market Gains: What You Should Know

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Kyndryl Holdings, Inc. (KD - Free Report) closed the most recent trading day at $34.57, moving +1.02% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.08% for the day. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw an increase of 0.52%.

Shares of the company witnessed a loss of 13.89% over the previous month, trailing the performance of the Business Services sector with its loss of 9.22% and the S&P 500's loss of 7.33%.

Analysts and investors alike will be keeping a close eye on the performance of Kyndryl Holdings, Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $0.52, up 5300% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.78 billion, down 1.9% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.17 per share and a revenue of $15.03 billion, signifying shifts of +1163.64% and -6.34%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Kyndryl Holdings, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Kyndryl Holdings, Inc. boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Kyndryl Holdings, Inc. is presently trading at a Forward P/E ratio of 29.25. For comparison, its industry has an average Forward P/E of 21.86, which means Kyndryl Holdings, Inc. is trading at a premium to the group.

We can also see that KD currently has a PEG ratio of 5.85. 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. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.48.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.


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