Kyndryl Holdings, Inc. (KD) ended the recent trading session at $38.86, demonstrating a -1.02% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.26%.
Heading into today, shares of the company had lost 2.73% over the past month, lagging the Business Services sector's loss of 1.01% and the S&P 500's gain of 4.51%.
The investment community will be paying close attention to the earnings performance of Kyndryl Holdings, Inc. in its upcoming release. On that day, Kyndryl Holdings, Inc. is projected to report earnings of $0.37 per share, which would represent year-over-year growth of 184.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.8 billion, up 1.58% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.18 per share and revenue of $15.45 billion, which would represent changes of +83.19% and +2.63%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Kyndryl Holdings, Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.42% higher. Kyndryl Holdings, Inc. currently has a Zacks Rank of #2 (Buy).
In the context of valuation, Kyndryl Holdings, Inc. is at present trading with a Forward P/E ratio of 18.04. Its industry sports an average Forward P/E of 20.52, so one might conclude that Kyndryl Holdings, Inc. is trading at a discount comparatively.
Investors should also note that KD has a PEG ratio of 0.72 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. KD's industry had an average PEG ratio of 1.51 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 30% echelons of all 250+ industries.
Story continuesThe Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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).
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