Kyndryl Holdings, Inc. (KD) Exceeds Market Returns: Some Facts to Consider

The latest trading session saw Kyndryl Holdings, Inc. (KD) close at $25.54, representing a +0.27% adjustment from the last day’s close. The stock outperformed the S&P 500, which posted a daily gain of 0.09%. In contrast, the Dow Jones posted a 0.1% loss and the tech-focused Nasdaq rose 0.16%.

The company’s shares are down 6.91% over the past month, trailing the Business Services sector’s gain of 1.04% and the S&P 500’s gain of 2.83%.

Analysts and investors will be closely watching Kyndryl Holdings, Inc.’s performance during its next earnings release. Meanwhile, our most recent consensus estimate is calling for revenue of $3.76 billion, down 10.23% from the equivalent quarter last year.

For the full fiscal year, Zacks Consensus Estimates are projecting earnings of $1.28 per share and revenue of $15.4 billion, representing changes of +1,263.64% and -4.09%, respectively, compared to the previous year.

Investors may also notice recent changes to analyst estimates for Kyndryl Holdings, Inc. These latest adjustments often reflect changing dynamics in near-term business models. As a result, optimistic changes in estimates indicate analysts’ favorable outlook for the company’s health and profitability.

Our research demonstrates that these estimate adjustments are directly associated with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-verified track record of success, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained unchanged. stable. Kyndryl Holdings, Inc. currently sports a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Kyndryl Holdings, Inc. is currently trading at a forward P/E ratio of 19.95. This denotes a discount to the industry’s average forward P/E of 22.07.

It’s also worth mentioning that KD has a PEG ratio of 3.99. This popular metric is similar to the well-known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. The average PEG ratio for the Technology Services sector stood at 1.43 as of market close yesterday.

The technology services industry is part of the business services sector. This industry, currently sporting a Zacks Industry Rank of 69, is in the top 28% of all 250+ industries.

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

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