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Kimberly-Clark to Invest in Oklahoma Mill, Boost Brands
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Kimberly-Clark Corporation (KMB - Free Report) is focusing on business growth across key markets through brand investments and other strategic endeavors. Per market hearsay, the company plans to invest in the Oklahoma mill to expand capacity. Per sources, the development project is likely to be completed in 2020. Let’s take a closer look at how such moves are likely to aid this renowned personal care products company.
Efforts to Enhance Brand Strength
The Oklahoma mill is engaged in the manufacturing of Scott and Cottonelle toilet papers as well as other personal care products. Also, the facility consists of a regional distribution center. The rumored plans of expanding the mill is likely to add greater floor space and enable installation of new resources for manufacturing Scott bath tissue as well as products under the Kleenex folded tissue banner.
We expect that the investment plan, if carried out, will boost Kimberly-Clark’s consumer tissue category. Notably, the company focuses on growth of its segments through product development and strengthening of supply chain. In fact, it is keen on innovation and upgrades for products such as tissues, diapers as well as baby wipes.
Kimberly-Clark, which is part of the Consumer Products–Staples industry, has been grappling with high input costs for a while now. Markedly, greater costs of pulp and other raw materials are weighing on profitability. Further, management expects input cost inflation for 2019 in the range of $300-$400 million. Additionally, unfavorable currency movements are a drag. For 2019, commodities and adverse currency rates are likely to impair operating profits by nearly 20%.
Nevertheless, we expect this Zacks Rank #3 (Hold) company to cushion the aforementioned challenges, through strategic endeavors that boost brand sales and enhance efficiency. In fact, as part of the Global Restructuring Program, the company plans to exit certain low-margin businesses and concentrate on other prospective areas. Moreover, the company has plans to drive savings through Global Restructuring & FORCE Programs. To top these, the company is on track with strengthening e-commerce platform as well as leveraging capabilities in marketing and sales. Such well-chalked growth plans have boosted investors’ optimism on the stock that gained nearly 3.8% in the past three months compared with S&P 500’s increase of 2.8%.
Nomad Foods (NOMD - Free Report) has a long-term EPS growth rate of 11% and currently carries a Zacks Rank #2 (Buy).
Lamb Weston Holdings (LW - Free Report) has a long-term EPS growth rate of 12% and holds a Zacks Rank #2 at present.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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Kimberly-Clark to Invest in Oklahoma Mill, Boost Brands
Kimberly-Clark Corporation (KMB - Free Report) is focusing on business growth across key markets through brand investments and other strategic endeavors. Per market hearsay, the company plans to invest in the Oklahoma mill to expand capacity. Per sources, the development project is likely to be completed in 2020. Let’s take a closer look at how such moves are likely to aid this renowned personal care products company.
Efforts to Enhance Brand Strength
The Oklahoma mill is engaged in the manufacturing of Scott and Cottonelle toilet papers as well as other personal care products. Also, the facility consists of a regional distribution center. The rumored plans of expanding the mill is likely to add greater floor space and enable installation of new resources for manufacturing Scott bath tissue as well as products under the Kleenex folded tissue banner.
We expect that the investment plan, if carried out, will boost Kimberly-Clark’s consumer tissue category. Notably, the company focuses on growth of its segments through product development and strengthening of supply chain. In fact, it is keen on innovation and upgrades for products such as tissues, diapers as well as baby wipes.
Kimberly-Clark Corporation Price and Consensus
Kimberly-Clark Corporation Price and Consensus | Kimberly-Clark Corporation Quote
Will Efforts Help Overcome Hurdles?
Kimberly-Clark, which is part of the Consumer Products–Staples industry, has been grappling with high input costs for a while now. Markedly, greater costs of pulp and other raw materials are weighing on profitability. Further, management expects input cost inflation for 2019 in the range of $300-$400 million. Additionally, unfavorable currency movements are a drag. For 2019, commodities and adverse currency rates are likely to impair operating profits by nearly 20%.
Nevertheless, we expect this Zacks Rank #3 (Hold) company to cushion the aforementioned challenges, through strategic endeavors that boost brand sales and enhance efficiency. In fact, as part of the Global Restructuring Program, the company plans to exit certain low-margin businesses and concentrate on other prospective areas. Moreover, the company has plans to drive savings through Global Restructuring & FORCE Programs. To top these, the company is on track with strengthening e-commerce platform as well as leveraging capabilities in marketing and sales. Such well-chalked growth plans have boosted investors’ optimism on the stock that gained nearly 3.8% in the past three months compared with S&P 500’s increase of 2.8%.
Greedy for Consumer Staples Stocks? Check These
The Estee Lauder Companies (EL - Free Report) has a long-term EPS growth rate of 12.4% and sports a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nomad Foods (NOMD - Free Report) has a long-term EPS growth rate of 11% and currently carries a Zacks Rank #2 (Buy).
Lamb Weston Holdings (LW - Free Report) has a long-term EPS growth rate of 12% and holds a Zacks Rank #2 at present.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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