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Stocks have gotten off a solid start in 2023, undoubtedly a welcomed development following a brutal 2022.
The feared earnings “apocalypse” has yet to materialize, helping keep the market afloat. In addition, many stocks are now seeing their earnings outlooks drift higher.
However, one big-time name in the Zacks Consumer Staples sector, Kimberly-Clark (KMB - Free Report) , has seen its near-term earnings outlook come under pressure as of late, pushing the stock into a Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Kimberly-Clark is principally engaged in manufacturing and marketing a wide range of consumer products worldwide. KMB operates three business segments: Personal Care, Consumer Tissue, and K-C Professional.
Let’s take a closer glance at the company.
Share Performance
Kimberly-Clark shares have struggled to find buyers year-to-date, down more than 5% and widely underperforming relative to the S&P 500.
Image Source: Zacks Investment Research
Still, over the last year, KMB shares are hanging onto a 1.5% gain, easily beating the S&P 500 in the same period.
Image Source: Zacks Investment Research
As we can see, buyers have backed off following a big run-up from October 2022 to mid-December 2022.
Quarterly Performance
KMB has primarily posted mixed bottom line results, falling short of the Zacks Consensus EPS Estimate in six of its last ten quarters.
Still, revenue results have been much better, with Kimberly-Clark exceeding sales expectations in six consecutive quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Dividends
The stock does pay a dividend, currently yielding 3.6% annually.
In addition, the company has shown a commitment to increasingly rewarding its shareholders, carrying a 4% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Bottom Line
Mixed bottom line results and negative earnings estimate revisions from analysts paint a challenging picture for the company in the near term.
Kimberly-Clark (KMB - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook over the last several months.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
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Bear of the Day: Kimberly-Clark (KMB)
Stocks have gotten off a solid start in 2023, undoubtedly a welcomed development following a brutal 2022.
The feared earnings “apocalypse” has yet to materialize, helping keep the market afloat. In addition, many stocks are now seeing their earnings outlooks drift higher.
However, one big-time name in the Zacks Consumer Staples sector, Kimberly-Clark (KMB - Free Report) , has seen its near-term earnings outlook come under pressure as of late, pushing the stock into a Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Kimberly-Clark is principally engaged in manufacturing and marketing a wide range of consumer products worldwide. KMB operates three business segments: Personal Care, Consumer Tissue, and K-C Professional.
Let’s take a closer glance at the company.
Share Performance
Kimberly-Clark shares have struggled to find buyers year-to-date, down more than 5% and widely underperforming relative to the S&P 500.
Image Source: Zacks Investment Research
Still, over the last year, KMB shares are hanging onto a 1.5% gain, easily beating the S&P 500 in the same period.
Image Source: Zacks Investment Research
As we can see, buyers have backed off following a big run-up from October 2022 to mid-December 2022.
Quarterly Performance
KMB has primarily posted mixed bottom line results, falling short of the Zacks Consensus EPS Estimate in six of its last ten quarters.
Still, revenue results have been much better, with Kimberly-Clark exceeding sales expectations in six consecutive quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Dividends
The stock does pay a dividend, currently yielding 3.6% annually.
In addition, the company has shown a commitment to increasingly rewarding its shareholders, carrying a 4% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Bottom Line
Mixed bottom line results and negative earnings estimate revisions from analysts paint a challenging picture for the company in the near term.
Kimberly-Clark (KMB - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook over the last several months.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.