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Kyndryl Holdings, Inc. (KD) Stock Dips While Market Gains: Key Facts

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Kyndryl Holdings, Inc. (KD - Free Report) closed the latest trading day at $38.92, indicating a -0.54% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.61%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.28%.

Shares of the company have appreciated by 11.83% over the course of the past month, outperforming the Business Services sector's gain of 0.72% and the S&P 500's gain of 2.08%.

Investors will be eagerly watching for the performance of Kyndryl Holdings, Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 3, 2025. On that day, Kyndryl Holdings, Inc. is projected to report earnings of $0.41 per share, which would represent year-over-year growth of 920%. Our most recent consensus estimate is calling for quarterly revenue of $3.82 billion, down 2.87% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.14 per share and revenue of $15.26 billion. These totals would mark changes of +1136.36% and -4.93%, respectively, from last 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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. is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Kyndryl Holdings, Inc. has a Forward P/E ratio of 34.22 right now. This represents a premium compared to its industry's average Forward P/E of 23.69.

Meanwhile, KD's PEG ratio is currently 6.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.48.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 30% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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