In the latest trading session, Kyndryl Holdings, Inc. (KD) closed at $11.75, marking a -1.09% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.6%. Elsewhere, the Dow saw an upswing of 0.83%, while the tech-heavy Nasdaq appreciated by 0.64%.
The stock of company has fallen by 6.31% in the past month, lagging the Business Services sector's loss of 2.9% and the S&P 500's gain of 1.34%.
Analysts and investors alike will be keeping a close eye on the performance of Kyndryl Holdings, Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.37, marking a 2.63% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.6 billion, down 3.15% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.85 per share and a revenue of $14.76 billion, indicating changes of +26.71% and -2.23%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kyndryl Holdings, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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, the Zacks Consensus EPS estimate remained stagnant. Right now, Kyndryl Holdings, Inc. possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Kyndryl Holdings, Inc. has a Forward P/E ratio of 6.43 right now. This indicates a discount in contrast to its industry's Forward P/E of 15.81.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 172, positioning it in the bottom 31% 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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Kyndryl Holdings, Inc. (KD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).