Kimberly-Clark (KMB) Advances While Market Declines: Some Information for Investors
Kimberly-Clark (KMB) closed at $123.62 in the latest trading session, marking a +0.11% move from the prior day. This change outpaced the S&P 500's 1.02% loss on the day. Meanwhile, the Dow experienced a drop of 1.04%, and the technology-dominated Nasdaq saw a decrease of 1.65%.
Shares of the maker of consumer products such as Huggies diapers and Kleenex tissue have appreciated by 2.07% over the course of the past month, outperforming the Consumer Staples sector's loss of 1.15% and lagging the S&P 500's gain of 3.64%.
The investment community will be paying close attention to the earnings performance of Kimberly-Clark in its upcoming release. The company's upcoming EPS is projected at $1.59, signifying a 4.79% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.05 billion, indicating a 2.81% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.83 per share and revenue of $20.41 billion, indicating changes of +3.96% and -0.1%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Kimberly-Clark. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Kimberly-Clark currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Kimberly-Clark is presently trading at a Forward P/E ratio of 18.08. This expresses no noticeable deviation compared to the average Forward P/E of 18.08 of its industry.
We can additionally observe that KMB currently boasts a PEG ratio of 3.88. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Consumer Products - Staples was holding an average PEG ratio of 1.77 at yesterday's closing price.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report
