Kyndryl Holdings, Inc. (KD) Beats Stock Market Upswing: What Investors Need to Know

In the latest close session, Kyndryl Holdings, Inc. (KD) was up +1.21% at $41.96. The stock's performance was ahead of the S&P 500's daily gain of 0.52%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 0.48%.

Shares of the company have appreciated by 6.2% over the course of the past month, outperforming the Business Services sector's loss of 1.89%, and the S&P 500's gain of 4.27%.

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The upcoming earnings release of Kyndryl Holdings, Inc. will be of great interest to investors. On that day, Kyndryl Holdings, Inc. is projected to report earnings of $0.48 per share, which would represent year-over-year growth of 269.23%. Alongside, our most recent consensus estimate is anticipating revenue of $3.85 billion, indicating a 3.09% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.17 per share and a revenue of $15.64 billion, indicating changes of +82.35% and +3.86%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Kyndryl Holdings, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.66% lower. Right now, Kyndryl Holdings, Inc. possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Kyndryl Holdings, Inc. is currently exchanging hands at a Forward P/E ratio of 19.09. This represents a discount compared to its industry average Forward P/E of 20.52.

We can also see that KD currently has a PEG ratio of 0.76. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.47.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 17% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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