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Kimberly-Clark Sees High Demand Amid Coronavirus Jitters

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Kimberly-Clark Corporation (KMB - Free Report) issued a business update regarding the coronavirus outbreak. This provider of various essential hygiene products like toilet paper, tissues, wet wipes and paper towels among others across more than 150 countries is witnessing a spike in demand due to the panic-buying trends amid the coronavirus outbreak.

In this regard, the company is undertaking a number of measures to increase production of essential commodities. Also, Kimberly-Clark is reallocating inventory to provide consumers with greater access to its products amid the crisis. Notably, the company is assuring enhanced precautionary measures in its manufacturing units that continue to remain operational to support the production of essential commodities amid the coronavirus outbreak.

The rapidly-spreading novel coronavirus has rattled the globalmarket and disrupted economic activities. As complete physical isolation is the sole method to contain the spread of the pandemic, governments across several countries are imposing lockdowns and curfews. With community transmission gaining scale, people are hoarding essentials so that they do not have to venture out for daily supplies.



As a result, demand for essentials like toilet paper, disinfectants, masks, gloves, packaged water, infant supplies medicines, groceries and related staples have seen an unusual rise in demand in the past month. Consequently, big-box retailers like Walmart (WMT - Free Report) , Target (TGT - Free Report) and Dollar Tree (DLTR - Free Report) have to restock their shelves faster than usual to support burgeoning demand amid the coronavirus outbreak.

Several companies around the globe are likely to benefit from burgeoning demand for aforementioned essential goods stemming from consumers' panic-buying trends amid the coronavirus outbreak. Although, demand for most of products provided by consumer staple companies remains fairly stable, the coronavirus-led stockpiling is likely to aid the performance of players like Kimberly-Clark.

Meanwhile, the company along with its foundation has pledged more than $8 million to various organizations with a view to support them in their fight against the consequences of the novel coronavirus outbreak.

We note that shares of this Zacks Rank #3 (Hold) company have increased 9.5% in the past year compared with the industry’s decline of 22.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



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