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Kyndryl Holdings, Inc. (KD) Gains As Market Dips: What You Should Know

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In the latest trading session, Kyndryl Holdings, Inc. (KD - Free Report) closed at $24.93, marking a +0.36% move from the previous day. This change outpaced the S&P 500's 0.76% loss on the day. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 1.01%.

The the stock of company has risen by 7.39% in the past month, leading the Business Services sector's gain of 3.52% and the S&P 500's gain of 4.31%.

Market participants will be closely following the financial results of Kyndryl Holdings, Inc. in its upcoming release. The company plans to announce its earnings on November 6, 2024. The company is predicted to post an EPS of $0.09, indicating a 280% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.7 billion, indicating a 9.14% decrease compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.29 per share and revenue of $15.28 billion, indicating changes of +1272.73% and -4.84%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Kyndryl Holdings, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 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 #4 (Sell).

Valuation is also important, so investors should note that Kyndryl Holdings, Inc. has a Forward P/E ratio of 19.29 right now. Its industry sports an average Forward P/E of 26.69, so one might conclude that Kyndryl Holdings, Inc. is trading at a discount comparatively.

Meanwhile, KD's PEG ratio is currently 3.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. 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. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 31% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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