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Kimberly-Clark (KMB) Gains As Market Dips: What You Should Know

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In the latest trading session, Kimberly-Clark (KMB - Free Report) closed at $134.72, marking a +0.39% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.15%. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.34%.

Coming into today, shares of the maker of consumer products such as Huggies diapers and Kleenex tissue had gained 5.04% in the past month. In that same time, the Consumer Staples sector lost 1.02%, while the S&P 500 lost 5.08%.

Wall Street will be looking for positivity from Kimberly-Clark as it approaches its next earnings report date. This is expected to be July 26, 2022. The company is expected to report EPS of $1.28, down 12.93% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.91 billion, up 3.95% from the year-ago period.

KMB's full-year Zacks Consensus Estimates are calling for earnings of $5.82 per share and revenue of $20.15 billion. These results would represent year-over-year changes of -5.83% and +3.66%, respectively.

Investors might also notice recent changes to analyst estimates for Kimberly-Clark. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Kimberly-Clark has a Forward P/E ratio of 23.06 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.41.

Meanwhile, KMB's PEG ratio is currently 4.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Consumer Products - Staples was holding an average PEG ratio of 1.72 at yesterday's closing price.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 23% 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.

To follow KMB in the coming trading sessions, be sure to utilize Zacks.com.


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