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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 at $120.85 in the latest trading session, marking a -0.62% move from the prior day. This move lagged the S&P 500's daily loss of 0.27%. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq gained 0.14%.

Prior to today's trading, shares of the maker of consumer products such as Huggies diapers and Kleenex tissue had lost 5.61% over the past month. This has was narrower than the Consumer Staples sector's loss of 5.93% and lagged the S&P 500's loss of 2.86% in that time.

Investors will be hoping for strength from Kimberly-Clark as it approaches its next earnings release, which is expected to be October 24, 2023. On that day, Kimberly-Clark is projected to report earnings of $1.58 per share, which would represent year-over-year growth of 12.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.14 billion, up 1.78% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.42 per share and revenue of $20.49 billion. These totals would mark changes of +14.03% and +1.54%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Kimberly-Clark. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Kimberly-Clark is currently a Zacks Rank #2 (Buy).

In terms of valuation, Kimberly-Clark is currently trading at a Forward P/E ratio of 18.95. Its industry sports an average Forward P/E of 19.81, so we one might conclude that Kimberly-Clark is trading at a discount comparatively.

It is also worth noting that KMB currently has a PEG ratio of 2.32. 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 2.21 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 110, putting it in the top 44% 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.

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