Back to top

Image: Bigstock

Kimberly-Clark (KMB) Laps the Stock Market: Here's Why

Read MoreHide Full Article

Kimberly-Clark (KMB - Free Report) closed the most recent trading day at $121.77, moving +0.66% from the previous trading session. This change outpaced the S&P 500's 0.46% gain on the day. On the other hand, the Dow registered a gain of 0.48%, and the technology-centric Nasdaq increased by 0.7%.

The the stock of maker of consumer products such as Huggies diapers and Kleenex tissue has fallen by 0.21% in the past month, lagging the Consumer Staples sector's gain of 3.12% and the S&P 500's gain of 4.85%.

The investment community will be closely monitoring the performance of Kimberly-Clark in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.53, reflecting a 0.65% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $5.01 billion, up 0.84% from the prior-year quarter.

KMB's full-year Zacks Consensus Estimates are calling for earnings of $6.59 per share and revenue of $20.47 billion. These results would represent year-over-year changes of +17.05% and +1.45%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kimberly-Clark. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Kimberly-Clark is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Kimberly-Clark is currently exchanging hands at a Forward P/E ratio of 18.36. This signifies no noticeable deviation in comparison to the average Forward P/E of 18.36 for its industry.

We can also see that KMB currently has a PEG ratio of 2.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Consumer Products - Staples industry had an average PEG ratio of 2.15 as trading concluded yesterday.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 33% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


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


Kimberly-Clark Corporation (KMB) - free report >>

Published in