Kyndryl Holdings, Inc. (KD) Stock Sinks As Market Gains: What You Should Know
Kyndryl Holdings, Inc. (KD) closed at $32.04 in the latest trading session, marking a -0.03% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.06% for the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Shares of the company witnessed a gain of 2.33% over the previous month, beating the performance of the Business Services sector with its loss of 4.91% and the S&P 500's loss of 4.29%.
The investment community will be paying close attention to the earnings performance of Kyndryl Holdings, Inc. in its upcoming release. The company is slated to reveal its earnings on May 7, 2025. The company is forecasted to report an EPS of $0.52, showcasing a 5300% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $3.78 billion, indicating a 1.9% downward movement from the same quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kyndryl Holdings, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Kyndryl Holdings, Inc. currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Kyndryl Holdings, Inc. has a Forward P/E ratio of 15.43 right now. For comparison, its industry has an average Forward P/E of 16.95, which means Kyndryl Holdings, Inc. is trading at a discount to the group.
It is also worth noting that KD currently has a PEG ratio of 3.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Technology Services stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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