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Here's Why Kyndryl Holdings, Inc. (KD) Fell More Than Broader Market

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In the latest trading session, Kyndryl Holdings, Inc. (KD - Free Report) closed at $38.51, marking a -4.23% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.22%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.51%.

Heading into today, shares of the company had gained 2.19% over the past month, outpacing the Business Services sector's loss of 4.75% and the S&P 500's gain of 0.45%.

The investment community will be paying close attention to the earnings performance of Kyndryl Holdings, Inc. in its upcoming release. In that report, analysts expect Kyndryl Holdings, Inc. to post earnings of $0.48 per share. This would mark year-over-year growth of 269.23%. Meanwhile, our latest consensus estimate is calling for revenue of $3.85 billion, up 3.09% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.17 per share and a revenue of $15.64 billion, signifying shifts of +82.35% and +3.86%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Kyndryl Holdings, Inc. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 1.66% lower within the past month. Right now, Kyndryl Holdings, Inc. possesses a Zacks Rank of #3 (Hold).

Investors should also note Kyndryl Holdings, Inc.'s current valuation metrics, including its Forward P/E ratio of 18.51. This expresses a discount compared to the average Forward P/E of 20.11 of its industry.

One should further note that KD currently holds a PEG ratio of 0.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. KD's industry had an average PEG ratio of 1.49 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 40, this industry ranks in the top 17% of all industries, numbering over 250.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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