Back to top

Image: Bigstock

Kimberly-Clark (KMB) Outperforms Broader Market: What You Need to Know

Read MoreHide Full Article

The most recent trading session ended with Kimberly-Clark (KMB - Free Report) standing at $125.05, reflecting a +0.66% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.57% gain on the day. At the same time, the Dow added 0.83%, and the tech-heavy Nasdaq gained 0.39%.

Shares of the maker of consumer products such as Huggies diapers and Kleenex tissue have appreciated by 5.02% over the course of the past month, outperforming the Consumer Staples sector's gain of 2.32% and the S&P 500's gain of 2.97%.

Investors will be eagerly watching for the performance of Kimberly-Clark in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.59, showcasing a 4.79% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $5.05 billion, indicating a 2.81% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $6.83 per share and a revenue of $20.41 billion, demonstrating changes of +3.96% and -0.1%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Kimberly-Clark. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Kimberly-Clark possesses a Zacks Rank of #4 (Sell).

Looking at its valuation, Kimberly-Clark is holding a Forward P/E ratio of 18.19. This valuation marks a premium compared to its industry's average Forward P/E of 17.8.

It is also worth noting that KMB currently has a PEG ratio of 3.91. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Consumer Products - Staples industry had an average PEG ratio of 2.3.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 42% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Kimberly-Clark Corporation (KMB) - free report >>

Published in