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

Kyndryl Holdings, Inc. (KD) ended the recent trading session at $12.36, demonstrating a -4.56% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.37%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq lost 0.84%.

The company's shares have seen an increase of 13.5% over the last month, surpassing the Business Services sector's loss of 0.26% and the S&P 500's loss of 3.7%.

Market participants will be closely following the financial results of Kyndryl Holdings, Inc. in its upcoming release. The company is predicted to post an EPS of $0.52, indicating constancy compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.93 billion, showing a 3.36% escalation compared to the year-ago quarter.

KD's full-year Zacks Consensus Estimates are calling for earnings of $1.84 per share and revenue of $15.14 billion. These results would represent year-over-year changes of +54.62% and +0.57%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kyndryl Holdings, Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Kyndryl Holdings, Inc. currently has a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Kyndryl Holdings, Inc. is presently being traded at a Forward P/E ratio of 7.05. For comparison, its industry has an average Forward P/E of 16.94, which means Kyndryl Holdings, Inc. is trading at a discount to the group.

The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 182, this industry ranks in the bottom 26% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.

See

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Kyndryl Holdings, Inc. (KD): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research