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Kyndryl Holdings, Inc. (KD) Laps the Stock Market: Here's Why

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Kyndryl Holdings, Inc. (KD - Free Report) closed the latest trading day at $38.42, indicating a +1.29% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.92%. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 2.03%.

Heading into today, shares of the company had gained 9.85% over the past month, outpacing the Business Services sector's gain of 2.44% and the S&P 500's gain of 0.81% in that time.

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 February 3, 2025. It is anticipated that the company will report an EPS of $0.41, marking a 920% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.82 billion, indicating a 2.87% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.14 per share and a revenue of $15.26 billion, signifying shifts of +1136.36% and -4.93%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Kyndryl Holdings, Inc. is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Kyndryl Holdings, Inc. is holding a Forward P/E ratio of 33.17. Its industry sports an average Forward P/E of 23.5, so one might conclude that Kyndryl Holdings, Inc. is trading at a premium comparatively.

Meanwhile, KD's PEG ratio is currently 6.63. 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 the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.53.

The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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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