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Kyndryl Holdings, Inc. (KD) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Kyndryl Holdings, Inc. (KD - Free Report) ? Shares have been on the move with the stock up 16.1% over the past month. The stock hit a new 52-week high of $20.83 in the previous session. Kyndryl Holdings, Inc. has gained 85.9% since the start of the year compared to the 22.5% move for the Zacks Business Services sector and the 52.4% return for the Zacks Technology Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 7, 2023, Kyndryl Holdings, Inc. reported EPS of $-0.05 versus consensus estimate of $-0.21.
For the current fiscal year, Kyndryl Holdings, Inc. is expected to post earnings of -$0.03 per share on $15.78 billion in revenues. This represents a 96.05% change in EPS on a -7.29% change in revenues. For the next fiscal year, the company is expected to earn $0.54 per share on $14.43 billion in revenues. This represents a year-over-year change of 1883.33% and -8.59%, respectively.
Valuation Metrics
Kyndryl Holdings, Inc. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Kyndryl Holdings, Inc. has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Kyndryl Holdings, Inc. currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Kyndryl Holdings, Inc. meets the list of requirements. Thus, it seems as though Kyndryl Holdings, Inc. shares could have a bit more room to run in the near term.
How Does KD Stack Up to the Competition?
Shares of KD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Cellebrite DI Ltd. (CLBT - Free Report) . CLBT has a Zacks Rank of # 1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Cellebrite DI Ltd. beat our consensus estimate by 800%, and for the current fiscal year, CLBT is expected to post earnings of $0.23 per share on revenue of $317.5 million.
Shares of Cellebrite DI Ltd. have gained 4.5% over the past month, and currently trade at a forward P/E of 35.26X and a P/CF of 96.67X.
The Technology Services industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for KD and CLBT, even beyond their own solid fundamental situation.
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Kyndryl Holdings, Inc. (KD) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Kyndryl Holdings, Inc. (KD - Free Report) ? Shares have been on the move with the stock up 16.1% over the past month. The stock hit a new 52-week high of $20.83 in the previous session. Kyndryl Holdings, Inc. has gained 85.9% since the start of the year compared to the 22.5% move for the Zacks Business Services sector and the 52.4% return for the Zacks Technology Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 7, 2023, Kyndryl Holdings, Inc. reported EPS of $-0.05 versus consensus estimate of $-0.21.
For the current fiscal year, Kyndryl Holdings, Inc. is expected to post earnings of -$0.03 per share on $15.78 billion in revenues. This represents a 96.05% change in EPS on a -7.29% change in revenues. For the next fiscal year, the company is expected to earn $0.54 per share on $14.43 billion in revenues. This represents a year-over-year change of 1883.33% and -8.59%, respectively.
Valuation Metrics
Kyndryl Holdings, Inc. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Kyndryl Holdings, Inc. has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Kyndryl Holdings, Inc. currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Kyndryl Holdings, Inc. meets the list of requirements. Thus, it seems as though Kyndryl Holdings, Inc. shares could have a bit more room to run in the near term.
How Does KD Stack Up to the Competition?
Shares of KD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Cellebrite DI Ltd. (CLBT - Free Report) . CLBT has a Zacks Rank of # 1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Cellebrite DI Ltd. beat our consensus estimate by 800%, and for the current fiscal year, CLBT is expected to post earnings of $0.23 per share on revenue of $317.5 million.
Shares of Cellebrite DI Ltd. have gained 4.5% over the past month, and currently trade at a forward P/E of 35.26X and a P/CF of 96.67X.
The Technology Services industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for KD and CLBT, even beyond their own solid fundamental situation.