IT infrastructure services provider Kyndryl (NYSE:KD) missed Wall Street’s revenue expectations in Q3 CY2025, with sales falling 1.4% year on year to $3.72 billion. Its non-GAAP profit of $0.38 per share was 6.2% above analysts’ consensus estimates.
Business services providers use their specialized expertise to help enterprises streamline operations and cut costs. These firms have helped their customers unlock huge efficiencies,
so it’s no surprise the industry has posted a 24.6% gain over the past six months, nearly mirrorring the S&P 500.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Over the past six months, Kyndryl’s shares (currently trading at $28.30) have posted a disappointing 8.7% loss, well below the S&P 500’s 24.7% gain. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
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A number of stocks fell in the afternoon session after worries over worsening trade relations with China were triggered by critical comments from President Donald Trump.
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks.
But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
A number of stocks fell in the afternoon session after broader macroeconomic concerns, including an ongoing government shutdown and anticipation of commentary from Federal Reserve officials, began to weigh on investor sentiment.
In the current market session, Kyndryl Hldgs Inc. (NYSE: KD) share price is at $30.11, after a 2.24% increase. Moreover, over the past month, the stock decreased by 3.43%, but in the past year, spiked by 34.24%.
Shares of IT infrastructure services provider Kyndryl (NYSE:KD) fell 4.3% in the morning session after Morgan Stanley initiated coverage on the company with an "Equalweight" rating and a $30 price target.
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions.
While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
A number of stocks fell in the afternoon session after markets pulled back, reversing early gains, as investor sentiment remained cautious despite a softer-than-expected inflation reading.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer.
However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
