In the latest close session, Kyndryl Holdings, Inc. (KD) was down 4.38% at $12.23. The stock trailed the S&P 500, which registered a daily loss of 0.11%. Meanwhile, the Dow experienced a drop of 0.56%, and the technology-dominated Nasdaq saw an increase of 0.35%.
The stock of company has risen by 1.83% in the past month, leading the Business Services sector's loss of 4.87% and the S&P 500's gain of 0.51%.
The upcoming earnings release of Kyndryl Holdings, Inc. will be of great interest to investors. The company is forecasted to report an EPS of $0.43, showcasing a 17.31% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.83 billion, indicating a 0.68% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $1.71 per share and a revenue of $15.15 billion, demonstrating changes of +43.7% and +0.61%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 14.38% lower within the past month. Kyndryl Holdings, Inc. is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, Kyndryl Holdings, Inc. is holding a Forward P/E ratio of 5.74. Its industry sports an average Forward P/E of 15.29, so one might conclude that Kyndryl Holdings, Inc. is trading at a discount comparatively.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 191, positioning it in the bottom 22% 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.
To follow KD in the coming trading sessions, be sure to utilize Zacks.com.
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Kyndryl Holdings, Inc. (KD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).