Back to top

Image: Bigstock

Kimberly-Clark (KMB) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Kimberly-Clark (KMB - Free Report) closed at $132.10 in the latest trading session, marking a +0.17% move from the prior day. This move lagged the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Coming into today, shares of the maker of consumer products such as Huggies diapers and Kleenex tissue had lost 6.03% in the past month. In that same time, the Consumer Staples sector lost 0.83%, while the S&P 500 gained 0.1%.

Wall Street will be looking for positivity from Kimberly-Clark as it approaches its next earnings report date. This is expected to be July 26, 2022. On that day, Kimberly-Clark is projected to report earnings of $1.28 per share, which would represent a year-over-year decline of 12.93%. Our most recent consensus estimate is calling for quarterly revenue of $4.91 billion, up 3.95% from the year-ago period.

KMB's full-year Zacks Consensus Estimates are calling for earnings of $5.82 per share and revenue of $20.15 billion. These results would represent year-over-year changes of -5.83% and +3.66%, respectively.

Investors might also notice recent changes to analyst estimates for Kimberly-Clark. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Kimberly-Clark is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Kimberly-Clark is holding a Forward P/E ratio of 22.66. This valuation marks a premium compared to its industry's average Forward P/E of 14.37.

It is also worth noting that KMB currently has a PEG ratio of 4.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KMB's industry had an average PEG ratio of 1.62 as of yesterday's close.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


KimberlyClark Corporation (KMB) - free report >>

Published in