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Kyndryl Holdings, Inc. (KD) Stock Sinks As Market Gains: Here's Why

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Kyndryl Holdings, Inc. (KD - Free Report) closed the most recent trading day at $13.82, moving -1.14% from the previous trading session. This move lagged the S&P 500's daily gain of 1.02%. At the same time, the Dow added 1.62%, and the tech-heavy Nasdaq gained 0.89%.

Shares of the company have appreciated by 8.79% over the course of the past month, outperforming the Business Services sector's gain of 6.91%, and lagging the S&P 500's gain of 12.23%.

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 May 6, 2026. The company's upcoming EPS is projected at $0.43, signifying a 17.31% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.83 billion, indicating a 0.68% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.71 per share and a revenue of $15.15 billion, representing changes of +43.7% and +0.61%, respectively, from the prior year.

It is also important to note the recent changes 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 business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Kyndryl Holdings, Inc. presently features a Zacks Rank of #4 (Sell).

In the context of valuation, Kyndryl Holdings, Inc. is at present trading with a Forward P/E ratio of 6.27. This expresses a discount compared to the average Forward P/E of 16.05 of its industry.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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