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Kimberly-Clark (KMB) Dips More Than Broader Markets: What You Should Know

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Kimberly-Clark (KMB - Free Report) closed the most recent trading day at $133.59, moving -0.65% from the previous trading session. This change lagged the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.11%.

Heading into today, shares of the maker of consumer products such as Huggies diapers and Kleenex tissue had gained 0.77% over the past month, outpacing the Consumer Staples sector's loss of 0.06% and the S&P 500's loss of 0.62% in that time.

Kimberly-Clark will be looking to display strength as it nears its next earnings release, which is expected to be July 26, 2022. The company is expected to report EPS of $1.28, down 12.93% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.91 billion, up 3.95% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.82 per share and revenue of $20.15 billion. These totals would mark changes of -5.83% and +3.66%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Kimberly-Clark. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Kimberly-Clark currently has a Zacks Rank of #3 (Hold).

Investors should also note Kimberly-Clark's current valuation metrics, including its Forward P/E ratio of 23.1. Its industry sports an average Forward P/E of 14.09, so we one might conclude that Kimberly-Clark is trading at a premium comparatively.

We can also see that KMB currently has a PEG ratio of 4.62. 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 1.76 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 218, putting it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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