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Kyndryl Holdings, Inc. (KD) closed the latest trading day at $35.39, indicating a -0.78% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.39%. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, lost 0.32%.
The company's stock has climbed by 27.12% in the past month, exceeding the Business Services sector's gain of 3% and the S&P 500's gain of 3.6%.
The upcoming earnings release of Kyndryl Holdings, Inc. will be of great interest to investors. The company is forecasted to report an EPS of $0.41, showcasing a 920% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.82 billion, indicating a 2.87% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.22 per share and a revenue of $15.26 billion, representing changes of +1209.09% and -4.93%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Kyndryl Holdings, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Kyndryl Holdings, Inc. currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Kyndryl Holdings, Inc. currently has a Forward P/E ratio of 29.29. This represents a premium compared to its industry's average Forward P/E of 28.14.
We can additionally observe that KD currently boasts a PEG ratio of 5.86. 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 1.59.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 73, placing it within the top 30% of over 250 industries.