Core Insights - Kyndryl Holdings, Inc. (KD) is currently viewed as a stronger investment option compared to AppLovin (APP) for those seeking undervalued stocks [1][3][7] Valuation Metrics - KD has a Zacks Rank of 1 (Strong Buy), indicating a stronger earnings outlook compared to APP, which has a Zacks Rank of 3 (Hold) [3] - The forward P/E ratio for KD is 19.69, significantly lower than APP's forward P/E of 42.03, suggesting that KD is more attractively priced [5] - KD's PEG ratio stands at 0.79, while APP's PEG ratio is 2.10, indicating that KD is expected to grow earnings at a more favorable rate relative to its price [5] - KD has a P/B ratio of 7.49, compared to APP's P/B of 207.42, further highlighting KD's relative valuation advantage [6] - Based on these metrics, KD has earned a Value grade of A, while APP has a Value grade of D, reinforcing KD's position as the superior value option [6]

Core Viewpoint - Kyndryl has launched the Kyndryl Microsoft Acceleration Hub to enhance the adoption of artificial intelligence (AI) and accelerate digital transformation for enterprise customers [1][5]. Group 1: Collaboration and Services - The Acceleration Hub is developed in collaboration with Microsoft, utilizing Kyndryl Consult services and technical expertise to deploy tailored AI solutions using Microsoft Azure AI Foundry and Copilot [2][5]. - The Hub aims to create industry-specific solutions leveraging agentic AI to improve customer service efficiency and unlock new business value [2][5]. Group 2: Innovation and Infrastructure - The Hub will utilize existing physical and virtual innovation labs globally, including a new AI Innovation Lab in Liverpool, to foster collaboration for ideation, prototyping, and deployment of AI solutions [3]. - Kyndryl is embedding agentic AI into its global infrastructure services to help customers leverage the Microsoft stack effectively [5]. Group 3: Workforce and Expertise - Kyndryl has committed to skilling its workforce, with over 16,000 employees earning more than 26,000 Microsoft certifications, enhancing its expertise in Microsoft technologies [5]. - The company has achieved the AI Platform on Microsoft Azure specialization and renewed its Azure Expert MSP designation, a status held by less than 2% of Microsoft's partner ecosystem [6].

Core Viewpoint - Kyndryl has shown significant progress in business transformation and execution, leading to a notable stock price increase and positive analyst outlook [1] Group 1: Stock Performance - Kyndryl's stock reached a peak of $44.2, closing at $42.63, with a year-to-date increase of 26% [1] - The stock is expected to surpass its previous high of $43.45 set on February 5 [1] - Oppenheimer raised its price target for Kyndryl from $47 to $55, maintaining an "outperform" rating [1] Group 2: Business Growth - The company achieved a 46% year-over-year increase in contract signings for fiscal year 2025, totaling $18.3 billion [1] - High-margin contract revenue is projected to rise from 50% of total revenue in fiscal year 2025 to approximately 67% in fiscal year 2026 due to the repricing of legacy contracts [1] Group 3: Financial Projections - Kyndryl's consulting business contributed about 24% to new contract signings [1] - Free cash flow (FCF) is expected to double by fiscal year 2028, reaching approximately $1 billion, which will support stock buybacks and dividend payments [2]

Core Insights - The article emphasizes the focus on growth and momentum stocks that are reasonably priced and expected to outperform the market in the long term [1] - It highlights a significant investment opportunity, noting that the S&P 500 increased by 367% and the Nasdaq by 685% from 2009 to 2019, following a recommendation to buy at the financial crisis's bottom in March 2009 [1] Investment Strategy - The investment strategy involves long-term investment in quality stocks, with the use of options to enhance returns [1] - The goal is to assist investors in making money through investments in high-quality growth stocks [1]

Group 1 - The article discusses a long-term, contrarian approach to equities investing, with a focus on the Tech, Commodities, and Energy sectors as the world undergoes an energy transition [1] Group 2 - No specific company or stock positions are disclosed, indicating a neutral stance on investment recommendations [2][3]

Core Insights - Commvault and Kyndryl are partnering with Pure Storage to enhance cyber resilience and assist organizations in meeting regulatory requirements [1][3] - The collaboration aims to provide advanced services for incident recovery, managed backup, and hybrid platform recovery [2][4] - The partnership addresses the increasing complexity of data management and the persistent threat of cyberattacks, including ransomware [4] Regulatory Compliance - The partnership will help organizations comply with regulations such as the EU's DORA, NIS2, PSD2, NYDFS NYCRR 500, and Australia's APRA CPS 230 [3][5] - The services will be showcased at the Pure//Accelerate Conference in Las Vegas from June 17 to 19 [3] Service Offerings - Commvault and Pure Storage provide a modular, four-layer architecture that streamlines compliance and accelerates recovery in hybrid cloud environments [4][5] - Key offerings include automated and continuous testing for cyber recovery, supporting compliance with DORA Chapter II and IV [5] Availability and Support - Services are available across North America, Europe, and the Asia-Pacific region [6] - Channel partners can access resources through Commvault's Partner Advantage program, Kyndryl's go-to-market teams, and Pure Storage's Partner Portal [7] Technical Features - Cyber Resilient Vault protects backup data using zero-trust principles [8] - Clean Recovery Zone allows for forensic analysis and validation of backups [8] - Production Rapid Restore and Immutable Snapshot Recovery enable fast restoration of large datasets and application-consistent snapshot replication [8]

Company Performance - Kyndryl Holdings, Inc. closed at $39.25, reflecting a -2.29% change from the previous day, underperforming the S&P 500's daily loss of 1.13% [1] - Over the past month, the company's shares decreased by 1.37%, lagging behind the Business Services sector's gain of 0.81% and the S&P 500's gain of 3.55% [1] Upcoming Financial Results - The company is expected to report an EPS of $0.48, representing a significant increase of 269.23% compared to the same quarter last year [2] - Revenue is anticipated to be $3.85 billion, which is a 3.09% increase from the prior-year quarter [2] Full Year Projections - For the full year, earnings are projected at $2.17 per share and revenue at $15.64 billion, indicating increases of +82.35% and +3.86% respectively from the previous year [3] Analyst Estimates and Stock Performance - Recent changes to analyst estimates for Kyndryl Holdings reflect short-term business trends, with positive revisions indicating a favorable outlook on business health and profitability [4] - The Zacks Rank system, which assesses estimate changes, currently ranks Kyndryl Holdings at 3 (Hold), with a consensus EPS projection that has increased by 3.2% in the past 30 days [6] Valuation Metrics - Kyndryl Holdings is trading at a Forward P/E ratio of 18.49, which is below the industry average of 20.43, suggesting a discount relative to its peers [7] - The company has a PEG ratio of 0.74, compared to the Technology Services industry's average PEG ratio of 1.44, indicating a favorable valuation based on expected earnings growth [8] Industry Context - The Technology Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 44, placing it in the top 18% of over 250 industries [9]

Core Insights - Kyndryl has been certified as an Elite Launch Partner for AWS Transform for Mainframe, enabling the integration and migration of mainframe applications to AWS Cloud [1][2] - The company is launching new advisory and implementation services that leverage AWS's agentic AI capabilities to facilitate the modernization of mainframe applications [2][4] Kyndryl's Services and Approach - Kyndryl is applying its consulting expertise to streamline the application software development lifecycle, utilizing platform engineering and best practices for quick provisioning and deployment on AWS [3] - The use of AWS Transform is projected to reduce modernization and migration project timelines by approximately one-third, allowing customers to unlock value from their mainframe data and applications more quickly [4][5] Collaboration with AWS - A multi-year strategic collaboration agreement has been signed between Kyndryl and AWS to accelerate customer adoption of generative AI solutions [2] - Kyndryl's AI-powered integration platform, Kyndryl Bridge, consolidates cloud and mainframe automation, helping customers identify applications suitable for modernization [5] Market Trends and Customer Insights - According to Kyndryl's 2024 Mainframe Modernization Survey, 86% of respondents are deploying or planning to deploy AI to accelerate mainframe modernization, with nearly half aiming to use generative AI for actionable insights [6]

Group 1 - Kyndryl Holdings, Inc. (KD) has reached a key level of support and crossed above the 20-day moving average, indicating a short-term bullish trend [1] - The 20-day simple moving average (SMA) is a popular trading tool that smooths out short-term price trends and provides trend reversal signals [2][3] - KD's shares have increased by 8.7% over the past four weeks, and the company holds a Zacks Rank 3 (Hold), suggesting potential for continued gains [5] Group 2 - There have been three upward revisions in KD's earnings estimates for the current fiscal year, with no downward revisions, indicating a positive outlook [5] - The consensus estimate for KD has also moved up, further supporting the bullish sentiment around the stock [5][6]

Core Insights - Kyndryl has announced a global strategic partnership with Databricks to enhance customer digital transformation by delivering AI at scale and enabling data-driven organizations [1][2][3] Partnership Overview - The partnership aims to combine Kyndryl's data and AI services with the Databricks Data Intelligence Platform, facilitating IT modernization and achieving business goals cost-effectively [2][3] - Kyndryl's Global Strategic Alliances Leader emphasized that this collaboration will expand the reach of Kyndryl's services through integrated solutions necessary for enterprises to enable AI at scale [3] Service Offerings - Kyndryl will provide end-to-end data services to help customers adopt Databricks and modernize their data architectures, ensuring data quality, security, and scalability [7] - The company will guide customers in utilizing the Databricks platform for advanced capabilities like machine learning and natural language processing to unlock data potential [7] - Kyndryl will assist in integrating SAP and enterprise data through the SAP Business Data Cloud and SAP Databricks, aiming to unlock insights and enhance productivity [7] - The partnership will leverage Kyndryl's mainframe expertise to bridge legacy systems with modern analytics, delivering increased business insights [7] Company Background - Kyndryl is a leading provider of mission-critical enterprise technology services, operating in over 60 countries and offering advisory, implementation, and managed services [5]