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Kimberly-Clark (KMB) Dips More Than Broader Markets: What You Should Know

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Kimberly-Clark (KMB - Free Report) closed at $124.37 in the latest trading session, marking a -0.6% move from the prior day. This change lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq lost 0.23%.

Prior to today's trading, shares of the maker of consumer products such as Huggies diapers and Kleenex tissue had lost 1.25% over the past month. This has was narrower than the Consumer Staples sector's loss of 2.77% and lagged the S&P 500's gain of 2.08% in that time.

Kimberly-Clark will be looking to display strength as it nears its next earnings release, which is expected to be October 24, 2023. In that report, analysts expect Kimberly-Clark to post earnings of $1.58 per share. This would mark year-over-year growth of 12.86%. Meanwhile, our latest consensus estimate is calling for revenue of $5.14 billion, up 1.78% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.42 per share and revenue of $20.49 billion. These totals would mark changes of +14.03% and +1.54%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Kimberly-Clark. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection 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 19.5 right now. For comparison, its industry has an average Forward P/E of 20.42, which means Kimberly-Clark is trading at a discount to the group.

It is also worth noting that KMB currently has a PEG ratio of 2.39. 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. The Consumer Products - Staples industry currently had an average PEG ratio of 2.31 as of yesterday's close.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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