We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Kimberly-Clark (KMB) Looks Promising on Strategic Growth Pillars
Read MoreHide Full Article
Kimberly-Clark Corporation (KMB - Free Report) appears well-placed due to its focus on innovation, consumer-centric approach and strategic investments in product development, which have been leading to successful launches and market expansion. These upsides, along with savings initiatives and a focus on revenue growth management, have been working well for the company.
This Zacks Rank #2 (Buy) company’s shares have risen 11.4% year to date against the industry’s decline of 3.1%. Let’s discuss in detail all the factors narrating KMB’s growth story.
Strategic Growth Pillars
KMB is on track with its multi-year strategy aimed at achieving sustainable growth by leveraging its strengths and refining its strategic focus. As part of this, the company is accelerating pioneering innovation to address unmet consumer needs via groundbreaking technologies. In the past three years, its new product launches accounted for more than 50% of net sales in the Consumer businesses, playing a major role in driving almost 60% of incremental Consumer organic growth in first-quarter 2024.
Management is focused on optimizing its margin structure. In this regard, the company emphasizes a robust and continuous stream of cost savings to drive investments in innovation and capabilities. The company’s wiring organization for growth strategy is based on strengthening and streamlining the enterprise to enhance agility and efficiency.
Image Source: Zacks Investment Research
Management is refining its portfolio focus by concentrating on businesses that bolster market positions. This ensures that resources and investments are directed towards key competitive areas and core categories. Recently, it announced an agreement to divest our Personal Protective Equipment business, a strategic move aimed at streamlining the focus of the Kimberly-Clark Professional portfolio. It is in the process of evaluating the exit from certain private-label business ventures, with plans for implementation in 2025.
Solid Revenue Growth Management
Effective implementation of revenue growth management strategies (like pricing) and ongoing productivity initiatives have been aiding Kimberly-Clark’s organic sales and gross margin amid cost inflation. In first-quarter 2024, the company’s organic sales increased 6% on the back of a 4% rise in price stemming from pricing actions undertaken to tackle increased local costs in hyperinflationary economies, especially across Argentina. Product mix and volume were favorable by 1% each. Gross margin expanded 390 basis points (bps) to 37.1% on organic growth and gross productivity gains. Management anticipates pricing in hyperinflationary economies to contribute approximately 300 bps to organic growth for the year.
Saving Efforts on Track
Kimberly-Clark is taking robust steps to lower costs. In first-quarter 2024, management generated nearly $120 million in gross productivity through its integrated, end-to-end approach to margin management. The company realized incremental savings from enhanced procurement capabilities and deepened relationships with strategic suppliers, positioning the company to navigate future cost challenges better.
Despite elevated input costs and ongoing supply chain volatility, Kimberly-Clark’s early productivity gains bolster confidence in achieving its objectives.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 22.5% and 59.3%, respectively, from the year-ago reported numbers.
Utz Brands Inc. (UTZ - Free Report) manufactures a diverse portfolio of salty snacks, carrying a Zacks Rank #2. UTZ has a trailing four-quarter earnings surprise of 2% on average.
The Zacks Consensus Estimate for Utz Brands’ current financial-year earnings suggests growth of 26.3% from the year-ago reported numbers.
Conagra Brands (CAG - Free Report) , a consumer packaged goods food company, currently carries a Zacks Rank #2. The Zacks Consensus Estimate for CAG’s current fiscal-year earnings indicates a decline of 5.1% from the year-ago reported figure.
Conagra Brands has a trailing four-quarter earnings surprise of 6.8%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Kimberly-Clark (KMB) Looks Promising on Strategic Growth Pillars
Kimberly-Clark Corporation (KMB - Free Report) appears well-placed due to its focus on innovation, consumer-centric approach and strategic investments in product development, which have been leading to successful launches and market expansion. These upsides, along with savings initiatives and a focus on revenue growth management, have been working well for the company.
This Zacks Rank #2 (Buy) company’s shares have risen 11.4% year to date against the industry’s decline of 3.1%. Let’s discuss in detail all the factors narrating KMB’s growth story.
Strategic Growth Pillars
KMB is on track with its multi-year strategy aimed at achieving sustainable growth by leveraging its strengths and refining its strategic focus. As part of this, the company is accelerating pioneering innovation to address unmet consumer needs via groundbreaking technologies. In the past three years, its new product launches accounted for more than 50% of net sales in the Consumer businesses, playing a major role in driving almost 60% of incremental Consumer organic growth in first-quarter 2024.
Management is focused on optimizing its margin structure. In this regard, the company emphasizes a robust and continuous stream of cost savings to drive investments in innovation and capabilities. The company’s wiring organization for growth strategy is based on strengthening and streamlining the enterprise to enhance agility and efficiency.
Image Source: Zacks Investment Research
Management is refining its portfolio focus by concentrating on businesses that bolster market positions. This ensures that resources and investments are directed towards key competitive areas and core categories. Recently, it announced an agreement to divest our Personal Protective Equipment business, a strategic move aimed at streamlining the focus of the Kimberly-Clark Professional portfolio. It is in the process of evaluating the exit from certain private-label business ventures, with plans for implementation in 2025.
Solid Revenue Growth Management
Effective implementation of revenue growth management strategies (like pricing) and ongoing productivity initiatives have been aiding Kimberly-Clark’s organic sales and gross margin amid cost inflation. In first-quarter 2024, the company’s organic sales increased 6% on the back of a 4% rise in price stemming from pricing actions undertaken to tackle increased local costs in hyperinflationary economies, especially across Argentina. Product mix and volume were favorable by 1% each. Gross margin expanded 390 basis points (bps) to 37.1% on organic growth and gross productivity gains. Management anticipates pricing in hyperinflationary economies to contribute approximately 300 bps to organic growth for the year.
Saving Efforts on Track
Kimberly-Clark is taking robust steps to lower costs. In first-quarter 2024, management generated nearly $120 million in gross productivity through its integrated, end-to-end approach to margin management. The company realized incremental savings from enhanced procurement capabilities and deepened relationships with strategic suppliers, positioning the company to navigate future cost challenges better.
Despite elevated input costs and ongoing supply chain volatility, Kimberly-Clark’s early productivity gains bolster confidence in achieving its objectives.
Other Promising Consumer Staple Bets
Vital Farms Inc. (VITL - Free Report) offers a range of produced pasture-raised foods. It currently sports a Zacks Rank #1 (Strong Buy). VITL has a trailing four-quarter average earnings surprise of 102.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 22.5% and 59.3%, respectively, from the year-ago reported numbers.
Utz Brands Inc. (UTZ - Free Report) manufactures a diverse portfolio of salty snacks, carrying a Zacks Rank #2. UTZ has a trailing four-quarter earnings surprise of 2% on average.
The Zacks Consensus Estimate for Utz Brands’ current financial-year earnings suggests growth of 26.3% from the year-ago reported numbers.
Conagra Brands (CAG - Free Report) , a consumer packaged goods food company, currently carries a Zacks Rank #2. The Zacks Consensus Estimate for CAG’s current fiscal-year earnings indicates a decline of 5.1% from the year-ago reported figure.
Conagra Brands has a trailing four-quarter earnings surprise of 6.8%, on average.