Core Insights - Kyndryl has announced a five-year extension of its agreement with Hertz to enhance Hertz's technology ecosystem using its Agentic AI Framework and consulting services [1][3] Group 1: Partnership Details - The extension allows Kyndryl to continue its collaboration with Hertz, focusing on advancing technology and streamlining critical processes [2] - Kyndryl's services aim to modernize Hertz's core technology and operations, improving system reliability and operational efficiency [3] Group 2: Technology and Operations - Key components of the partnership include migrating mainframe systems to cloud-based architectures and consolidating IT platforms for a more integrated technology environment [3] - The integration of AI-driven automation capabilities through Kyndryl's Agentic AI Framework is expected to optimize Hertz's operational workflows [3] Group 3: Company Overview - Kyndryl is a leading provider of mission-critical enterprise technology services, operating in over 60 countries and focusing on IT infrastructure services [4]

Market Reaction - The U.S. stock market experienced a significant decline, with the S&P 500 dropping more than 2% during a session earlier in the week [1] Political Influence - The decline was triggered by U.S. President Donald Trump's threat to impose new tariffs on several European and NATO countries [1] Analyst Perspective - The article reflects a long-term, contrarian approach to equities investing, with a background in technology analysis and current coverage of commodities and energy sectors [1]

Core Insights - Kyndryl has introduced a new Clean Field approach that utilizes agentic AI to enhance the efficiency and effectiveness of SAP transformations for customers, particularly in migrating from SAP ECC to SAP S/4HANA [1][2][3] Group 1: Clean Field Approach - The Clean Field approach aims to create a robust digital foundation for customers, making their SAP migration process more adaptive and versatile to meet future business needs [1][2] - This approach allows for a clean core migration of data, processes, and systems, simplifying the SAP ERP upgrade while promoting a modular and adaptive system architecture [2][3] Group 2: Benefits of the Approach - Kyndryl's Clean Field approach, combined with deep SAP expertise and agentic AI, provides a faster and more disciplined path to SAP S/4HANA, reducing technical debt and manual effort while accelerating outcomes [3] - The approach is designed to be customizable to align with each customer's unique business goals, enhancing the overall modernization process [3] Group 3: Strategic Alliances and AI Integration - Kyndryl has a long-standing strategic alliance with SAP and has been recognized as a global RISE with SAP delivery partner, leveraging AI to support customers in their SAP transformation initiatives [4] - The integration of AI-driven services across various SAP solutions is aimed at accelerating customer adoption and optimization of SAP transformations [4][6]

Group 1 - Kyndryl Holdings, Inc. (NYSE:KD) is recognized as one of the most undervalued tech stocks to buy in 2026, with a recent multi-year partnership with Wayne State University aimed at creating a research hub and pilot factory [1] - The partnership will focus on testing AI-driven manufacturing technology, utilizing advanced AI, hands-on training, and automation to modernize factories, with the goal of building intelligent and agentic AI for autonomous manufacturing [2] - Kyndryl is expected to release its fiscal Q3 2026 results on February 4, with Wall Street anticipating revenue of approximately $3.89 billion and a GAAP EPS of $0.47, reflecting a 38.83% upside potential from current levels [3] Group 2 - Kyndryl Holdings Inc. is an IT infrastructure services provider that specializes in designing, building, managing, and modernizing complex technology systems, helping enterprises adopt and scale AI solutions through consulting and strategic partnerships [4]

Group 1 - Kyndryl Holdings, Inc. closed at $25.21, down 6.8% from the previous trading session, underperforming the S&P 500's daily loss of 0.06% [1] - Over the last month, Kyndryl's shares increased by 0.37%, outperforming the Business Services sector's loss of 2.05% but lagging behind the S&P 500's gain of 1.99% [1] Group 2 - The upcoming earnings disclosure is expected to show an EPS of $0.6, representing a 17.65% increase year-over-year, with quarterly revenue anticipated at $3.91 billion, up 4.51% from the previous year [2] - For the full year, analysts expect earnings of $2.23 per share and revenue of $15.61 billion, indicating increases of 87.39% and 3.66% respectively compared to last year [3] Group 3 - Recent changes to analyst estimates for Kyndryl Holdings should be noted, as positive revisions reflect optimism about the company's business and profitability [4] - Empirical research shows that revisions in estimates correlate with stock price performance, leading to the formation of the Zacks Rank system [5] Group 4 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a history of outperforming, with 1 stocks returning an average annual gain of 25% since 1988; Kyndryl currently holds a Zacks Rank of 2 (Buy) [6] - Over the past month, there has been a 0.18% rise in the Zacks Consensus EPS estimate for Kyndryl [6] Group 5 - Kyndryl Holdings is currently trading at a Forward P/E ratio of 12.11, which is a discount compared to the industry average Forward P/E of 16.83 [7] - The Technology Services industry, part of the Business Services sector, has a Zacks Industry Rank of 161, placing it in the bottom 35% of over 250 industries [7]

Core Insights - Kyndryl Holdings, Inc. (KD) closed at $27.05, reflecting a -1.06% change from the previous day, underperforming the S&P 500's daily loss of 0.19% [1] - The company is expected to report an EPS of $0.6, representing a 17.65% increase year-over-year, with revenue forecasted at $3.91 billion, up 4.51% from the prior year [2] - Full-year estimates predict earnings of $2.23 per share and revenue of $15.61 billion, indicating year-over-year growth of +87.39% and +3.66%, respectively [3] Analyst Estimates - Recent modifications to analyst estimates for Kyndryl Holdings indicate changing business trends, with positive revisions suggesting an optimistic outlook [4] - The Zacks Rank system, which assesses estimate changes, currently ranks Kyndryl Holdings at 2 (Buy), with a 0.18% increase in the consensus EPS estimate over the last 30 days [6] Valuation Metrics - Kyndryl Holdings is trading at a Forward P/E ratio of 12.24, which is lower than the industry's Forward P/E of 16.89, indicating a valuation discount [7] - The Technology Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 157, placing it in the bottom 36% of over 250 industries [7]

Group 1 - Kyndryl Holdings, Inc. (KD) shares have increased by 1.2% over the past four weeks, closing at $26.28, with a mean price target of $37.6 indicating a potential upside of 43.1% [1] - The mean estimate consists of five short-term price targets with a standard deviation of $10.78, where the lowest estimate is $28.00 (6.5% increase) and the highest is $55.00 (109.3% increase) [2] - Analysts have shown increasing optimism regarding KD's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which correlates with potential stock price movements [11] Group 2 - The Zacks Consensus Estimate for KD has increased by 0.2% due to one upward revision in earnings estimates over the last 30 days, with no negative revisions [12] - KD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential upside [13] - While the consensus price target may not be a reliable indicator of the extent of KD's potential gains, it does provide a directional guide for price movement [14]

Core Insights - Kyndryl's Chief Human Resources Officer (CHRO) Maryjo Charbonnier will retire on March 31, 2026, after nearly 20 years in public company HR roles, and will transition to an Executive Advisor position until the end of August 2026 [1][2] - Mark Paulek, who has been with Kyndryl since 2022, will succeed Charbonnier as CHRO effective April 1, 2026, bringing a strong background in human capital strategy and organizational growth [1][2][3] Leadership Impact - Charbonnier has significantly contributed to Kyndryl's reputation as an employer of choice, fostering a culture that attracts and retains talent, and has been recognized with over 100 workplace awards globally [2] - Paulek's appointment is seen as a strategic move to continue Kyndryl's growth strategy, leveraging his understanding of the business and experience in leading high-growth organizations [3] Company Overview - Kyndryl is a leading provider of mission-critical enterprise technology services, offering advisory, implementation, and managed services to thousands of customers across more than 60 countries [4] - The company is recognized as the world's largest IT infrastructure services provider, focusing on designing, building, managing, and modernizing complex information systems essential for daily operations [4]

Core Insights - Loomis Sayles Small Cap Value Fund reported a return of 6.21% in Q3 2025, underperforming the Russell 2000 Value Index which returned 12.60% [1] - The strong performance of US equities in Q3 was attributed to easing tariff concerns, a pro-growth budget from Congress, and expectations of further rate cuts by the Federal Reserve [1] Company-Specific Insights - Kyndryl Holdings, Inc. (NYSE:KD) had a one-month return of 7.23% but experienced a significant decline of 22.03% over the past 52 weeks, closing at $27.28 per share with a market capitalization of $6.306 billion on December 24, 2025 [2] - Kyndryl Holdings, Inc. was noted as a detractor from the fund's performance, alongside Haemonetics Corporation and Alight, Inc., due to a style mismatch with the fund's high-quality investment approach [3] - The number of hedge funds holding Kyndryl Holdings, Inc. decreased from 36 to 24 in the third quarter, indicating a decline in popularity among hedge fund portfolios [4] - Kyndryl reported revenue of $3.7 billion in Q2 of fiscal 2026, reflecting a 1% decrease year-over-year on a reported basis and a 3.7% decrease in constant currency [4]

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on Kyndryl Holdings, Inc. (KD), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank. Group 1: Brokerage Recommendations - Kyndryl Holdings, Inc. has an average brokerage recommendation (ABR) of 1.67, indicating a consensus between Strong Buy and Buy based on six brokerage firms' recommendations [2] - Out of the six recommendations, four are classified as Strong Buy, accounting for 66.7% of the total recommendations [2] - Despite the positive ABR, relying solely on this information for investment decisions may not be advisable, as studies show brokerage recommendations often lack success in guiding investors towards stocks with significant price appreciation [5][11] Group 2: Analyst Bias and Zacks Rank - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, issuing five "Strong Buy" recommendations for every "Strong Sell" [6] - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which are more effective in predicting near-term stock price movements [8][12] - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects timely earnings estimate revisions, while the ABR may not always be up-to-date [10][13] Group 3: Current Earnings Estimates for Kyndryl - The Zacks Consensus Estimate for Kyndryl Holdings, Inc. remains unchanged at $2.23 for the current year, indicating steady analyst views on the company's earnings prospects [14] - The unchanged consensus estimate has led to a Zacks Rank of 3 (Hold) for Kyndryl Holdings, suggesting caution despite the Buy-equivalent ABR [15]