Kimberly-Clark’s Strong Market Position Amidst Analyst Caution

Kimberly-Clark Corporation (KMB), with a market cap of $47.8 billion, stands as a leading manufacturer and marketer of personal care and hygiene products. The company operates through three main segments: Personal Care, Consumer Tissue, and K-C Professional. Its notable brands include Huggies, Kotex, Depend, Kleenex, Scott, and Cottonelle, which serve both consumer and professional markets

As a “large-cap” stock, Kimberly-Clark’s valuation exceeds $10 billion. Located in Dallas, Texas, it markets its products globally through various distribution channels, including supermarkets, mass merchandisers, drugstores, e-commerce platforms, and institutional outlets.

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Recently, Kimberly-Clark experienced a pullback of 6.4% from its 52-week high of $150.45, reached on March 10. Over the past three months, however, shares of Kimberly-Clark have increased by 7.6%, outperforming the Consumer Staples Select Sector SPDR Fund’s (XLP) 2.9% decline during the same period.

On a year-to-date (YTD) basis, KMB stock has risen by 7.5%, significantly outpacing XLP’s 1.6% rise. Additionally, over the last 52 weeks, shares of Kimberly-Clark soared by 11.2%, in contrast to XLP’s 5.2% return during the same timeframe.

Furthermore, KMB stock has maintained trading above both its 50-day and 200-day moving averages since February.

Shares of Kimberly-Clark showed minor recovery after its Q4 2024 earnings release on January 28, reporting better-than-expected sales of $4.9 billion, despite a small year-over-year decline. The adjusted operating profit rose by 2.1% to $684 million, bolstered by a 50 basis point gain in adjusted gross margin that mitigated the impact of increased manufacturing costs and strategic investments. Investors reacted favorably to the announcement of a quarterly dividend increase and the company’s reaffirmed outlook for 2025, which anticipates high single-digit growth in adjusted operating profit.

In contrast, Colgate-Palmolive Company (CL) has lagged behind KMB. Over the past 52 weeks, shares of Colgate-Palmolive have increased by just 3.8%, with a YTD rise of 1.3%.

Despite Kimberly-Clark’s strong performance, analysts are cautious about its future. The stock holds a consensus rating of “Hold” from the 19 analysts following it, and currently, it is trading below the mean price target of $142.83.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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