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Kimberly-Clark (KMB) Stock Moves -0.67%: What You Should Know

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Kimberly-Clark (KMB - Free Report) closed the most recent trading day at $126.91, moving -0.67% from the previous trading session. This move was narrower than the S&P 500's daily loss of 3.88%. At the same time, the Dow lost 2.79%, and the tech-heavy Nasdaq lost 0.58%.

Heading into today, shares of the maker of consumer products such as Huggies diapers and Kleenex tissue had lost 8.19% over the past month, lagging the Consumer Staples sector's loss of 2.66% and the S&P 500's loss of 2.32% in that time.

Kimberly-Clark will be looking to display strength as it nears its next earnings release, which is expected to be July 26, 2022. In that report, analysts expect Kimberly-Clark to post earnings of $1.28 per share. This would mark a year-over-year decline of 12.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.91 billion, up 3.95% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.82 per share and revenue of $20.15 billion, which would represent changes of -5.83% and +3.66%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Kimberly-Clark. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Kimberly-Clark is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Kimberly-Clark is currently trading at a Forward P/E ratio of 21.95. This valuation marks a premium compared to its industry's average Forward P/E of 14.07.

Investors should also note that KMB has a PEG ratio of 4.39 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Consumer Products - Staples stocks are, on average, holding a PEG ratio of 1.7 based on yesterday's closing prices.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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