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Kimberly-Clark Stock Trading Above 200 & 50-Day SMA: Should You Buy?
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Kimberly-Clark Corporation (KMB - Free Report) is experiencing an impressive upward trend, trading above its 200-day and 50-day simple moving averages (SMA). This robust performance highlights its stability and suggests a strong long-term bullish trend, positioning KMB as a key stock to monitor in the consumer staple space. As of Friday, Kimberly-Clark was trading at $142.54, surpassing its 200-day SMA of $130 and 50-day SMA of $141.35, highlighting a continued uptrend.
The SMA is an essential tool in technical analysis that helps investors evaluate price trends by smoothing out short-term fluctuations. This approach provides a clearer perspective on a stock's long-term direction. This technical strength, coupled with the KMB stock's sustained momentum, indicates positive market sentiment and reflects investors’ confidence in its financial health and growth potential.
Image Source: Zacks Investment Research
Shares of this leading manufacturer and marketer of consumer products have increased 17.3% year to date compared with the broader industry’s growth of 6.1%. In comparison, the Zacks Consumer Staples sector increased 11.5% at the same time. Kimberly-Clark’s stock currently stands 4.5% below its 52-week high of $149.31, scaled on Sept. 5.
Image Source: Zacks Investment Research
Decoding Kimberly-Clark’s Growth Story
In the second quarter of 2024, Kimberly-Clark showcased its market resilience by achieving positive volume-plus-mix growth for the third consecutive quarter. This achievement highlights the effectiveness of its shift to a volume-and-mix-driven growth model. By embracing advanced technologies and innovative product solutions, the company has aligned its strategies with both KMB’s 2024 objectives and long-term vision, allowing it to resonate with consumers worldwide.
Kimberly-Clark is undergoing a significant transformation to enhance growth and operational efficiency. The company’s "Wire Our Organization for Growth" strategy plays a central role in this initiative, focusing on reengineering KMB’s organizational structure to accelerate growth and sharpen its focus. As part of this transformation, Kimberly-Clark is exiting less promising markets and businesses. This includes the divestment of its Personal Protective Equipment business and plans to withdraw from operations in Nigeria, Bolivia and certain private label ventures. The company is also closing two facilities in the United Kingdom as part of its sustainability efforts and to optimize KMB’s tissue network.
A key priority for KMB is optimizing its margin structure. The company is committed to managing input costs effectively to achieve neutral-to-positive Price Net of Cost (“PNOC”) inflation. This strategy allows Kimberly-Clark to leverage productivity gains while continuing to invest in growth and meet its financial targets. Innovation remains a cornerstone of Kimberly-Clark’s strategy, with a robust pipeline of new products designed to deliver exceptional consumer value across its product lines.
In the first half of 2024, Kimberly-Clark made significant strides in reducing costs, generating approximately $250 million in gross supply-chain productivity. This funding is being reinvested to enhance supply-chain capabilities, improve product quality and strengthen brand positioning. Investments are also directed toward research and development, brand building and commercial capabilities, all while supporting sustainability goals.
Looking ahead, Kimberly-Clark plans to significantly increase the company’s investments in the latter half of the year, focusing on advancing product innovations and building world-class capabilities to sustain its momentum. By investing in infrastructure, the company aims to strengthen KMB’s global market position and deliver long-term value to stakeholders, positioning itself for balanced and sustainable growth in the evolving global market.
What to Expect From Kimberly-Clark in 2024?
Despite navigating a dynamic consumer and retail landscape, the company managed to achieve favorable gains in volume and product mix, driven by the introduction of pioneering new products and sustained momentum in productivity. Taking into account strong first-half results, management recently raised its profitability outlook for 2024.
Kimberly-Clark anticipates organic net sales to increase in mid-single-digit percentage in 2024. The adjusted operating profit is now projected to grow at a mid-to-high teens percentage rate at a constant-currency (cc) basis for the year. The company had earlier projected the metric to grow at a low-teens percentage rate at cc. Adjusted earnings per share (EPS) are anticipated to rise at a mid-to-high teens percentage rate at cc compared with the previous expectation of a low-teens percentage rate.
The Zacks Consensus Estimate for KMB’s 2024 EPS reflects year-over-year growth of 10.4%. This anticipated growth reinforces the potential for impressive performance, further attracting investors’ interest.
Should You Buy KMB Stock?
In conclusion, Kimberly-Clark is positioned for continued success in 2024, bolstered by a solid upward trend in its stock performance and a strong growth strategy. Its focus on innovation, operational efficiency and market resilience suggests that KMB is well-equipped to navigate challenges and capitalize on emerging opportunities. As Kimberly-Clark enhances its product offerings and optimizes the company’s operations, it remains a compelling option for investors looking for stability and growth in the consumer staples sector.
At present, KMB carries a Zacks Rank #2 (Buy).
Other Top-Ranked Staple Bets
Here, we have highlighted the other three top-ranked food stocks — The Chef's Warehouse (CHEF - Free Report) , Flowers Foods (FLO - Free Report) and McCormick & Company, Inc. (MKC - Free Report) .
CHEF has a trailing four-quarter earnings surprise of 33.7%, on average. The Zacks Consensus Estimate for The Chef’s Warehouse’s current fiscal year sales and earnings each indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported numbers.
Flowers Foods, one of the largest producers of packaged bakery foods in the United States, currently carries a Zacks Rank #2. FLO has a trailing four-quarter earnings surprise of 1.9%, on average. The Zacks Consensus Estimate for Flowers Foods’ current financial-year sales and earnings implies growth of around 1% and 5%, respectively, from the year-ago reported numbers.
McCormick is a leading manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors. It currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for McCormick & Company’s current fiscal-year sales and earnings indicates advancements of 0.2% and 5.6%, respectively, from the year-ago reported figures. MKC has a trailing four-quarter earnings surprise of 8.3%, on average.
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Kimberly-Clark Stock Trading Above 200 & 50-Day SMA: Should You Buy?
Kimberly-Clark Corporation (KMB - Free Report) is experiencing an impressive upward trend, trading above its 200-day and 50-day simple moving averages (SMA). This robust performance highlights its stability and suggests a strong long-term bullish trend, positioning KMB as a key stock to monitor in the consumer staple space. As of Friday, Kimberly-Clark was trading at $142.54, surpassing its 200-day SMA of $130 and 50-day SMA of $141.35, highlighting a continued uptrend.
The SMA is an essential tool in technical analysis that helps investors evaluate price trends by smoothing out short-term fluctuations. This approach provides a clearer perspective on a stock's long-term direction. This technical strength, coupled with the KMB stock's sustained momentum, indicates positive market sentiment and reflects investors’ confidence in its financial health and growth potential.
Image Source: Zacks Investment Research
Shares of this leading manufacturer and marketer of consumer products have increased 17.3% year to date compared with the broader industry’s growth of 6.1%. In comparison, the Zacks Consumer Staples sector increased 11.5% at the same time. Kimberly-Clark’s stock currently stands 4.5% below its 52-week high of $149.31, scaled on Sept. 5.
Image Source: Zacks Investment Research
Decoding Kimberly-Clark’s Growth Story
In the second quarter of 2024, Kimberly-Clark showcased its market resilience by achieving positive volume-plus-mix growth for the third consecutive quarter. This achievement highlights the effectiveness of its shift to a volume-and-mix-driven growth model. By embracing advanced technologies and innovative product solutions, the company has aligned its strategies with both KMB’s 2024 objectives and long-term vision, allowing it to resonate with consumers worldwide.
Kimberly-Clark is undergoing a significant transformation to enhance growth and operational efficiency. The company’s "Wire Our Organization for Growth" strategy plays a central role in this initiative, focusing on reengineering KMB’s organizational structure to accelerate growth and sharpen its focus. As part of this transformation, Kimberly-Clark is exiting less promising markets and businesses. This includes the divestment of its Personal Protective Equipment business and plans to withdraw from operations in Nigeria, Bolivia and certain private label ventures. The company is also closing two facilities in the United Kingdom as part of its sustainability efforts and to optimize KMB’s tissue network.
A key priority for KMB is optimizing its margin structure. The company is committed to managing input costs effectively to achieve neutral-to-positive Price Net of Cost (“PNOC”) inflation. This strategy allows Kimberly-Clark to leverage productivity gains while continuing to invest in growth and meet its financial targets. Innovation remains a cornerstone of Kimberly-Clark’s strategy, with a robust pipeline of new products designed to deliver exceptional consumer value across its product lines.
In the first half of 2024, Kimberly-Clark made significant strides in reducing costs, generating approximately $250 million in gross supply-chain productivity. This funding is being reinvested to enhance supply-chain capabilities, improve product quality and strengthen brand positioning. Investments are also directed toward research and development, brand building and commercial capabilities, all while supporting sustainability goals.
Looking ahead, Kimberly-Clark plans to significantly increase the company’s investments in the latter half of the year, focusing on advancing product innovations and building world-class capabilities to sustain its momentum. By investing in infrastructure, the company aims to strengthen KMB’s global market position and deliver long-term value to stakeholders, positioning itself for balanced and sustainable growth in the evolving global market.
What to Expect From Kimberly-Clark in 2024?
Despite navigating a dynamic consumer and retail landscape, the company managed to achieve favorable gains in volume and product mix, driven by the introduction of pioneering new products and sustained momentum in productivity. Taking into account strong first-half results, management recently raised its profitability outlook for 2024.
Kimberly-Clark anticipates organic net sales to increase in mid-single-digit percentage in 2024. The adjusted operating profit is now projected to grow at a mid-to-high teens percentage rate at a constant-currency (cc) basis for the year. The company had earlier projected the metric to grow at a low-teens percentage rate at cc. Adjusted earnings per share (EPS) are anticipated to rise at a mid-to-high teens percentage rate at cc compared with the previous expectation of a low-teens percentage rate.
The Zacks Consensus Estimate for KMB’s 2024 EPS reflects year-over-year growth of 10.4%. This anticipated growth reinforces the potential for impressive performance, further attracting investors’ interest.
Should You Buy KMB Stock?
In conclusion, Kimberly-Clark is positioned for continued success in 2024, bolstered by a solid upward trend in its stock performance and a strong growth strategy. Its focus on innovation, operational efficiency and market resilience suggests that KMB is well-equipped to navigate challenges and capitalize on emerging opportunities. As Kimberly-Clark enhances its product offerings and optimizes the company’s operations, it remains a compelling option for investors looking for stability and growth in the consumer staples sector.
At present, KMB carries a Zacks Rank #2 (Buy).
Other Top-Ranked Staple Bets
Here, we have highlighted the other three top-ranked food stocks — The Chef's Warehouse (CHEF - Free Report) , Flowers Foods (FLO - Free Report) and McCormick & Company, Inc. (MKC - Free Report) .
The Chef’s Warehouse, which distributes specialty food products, currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
CHEF has a trailing four-quarter earnings surprise of 33.7%, on average. The Zacks Consensus Estimate for The Chef’s Warehouse’s current fiscal year sales and earnings each indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported numbers.
Flowers Foods, one of the largest producers of packaged bakery foods in the United States, currently carries a Zacks Rank #2. FLO has a trailing four-quarter earnings surprise of 1.9%, on average. The Zacks Consensus Estimate for Flowers Foods’ current financial-year sales and earnings implies growth of around 1% and 5%, respectively, from the year-ago reported numbers.
McCormick is a leading manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors. It currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for McCormick & Company’s current fiscal-year sales and earnings indicates advancements of 0.2% and 5.6%, respectively, from the year-ago reported figures. MKC has a trailing four-quarter earnings surprise of 8.3%, on average.