Consumer products giant Kimberly-Clark Corporation KMB along with its Digital Innovation Lab (D'Lab) is offering an opportunity to the best start-up companies and entrepreneurs from around the globe to bring innovation to the consumer package goods category through its K-Challenge.
The program is primarily focused on finding tech solutions in five key areas of location-based technologies, omni-channel commerce experiences, data & predictive analytics, content & media experiences, and Internet-of-things/wearables/connected devices.
Through the K-Challenge, Kimberly-Clark expects to get "Tech for Life" solutions for the company and its well-known global brands such as Kleenex, Huggies, Depend and Kotex. It strives to satisfy the needs of its digitally savvy consumers.
We note that Kimberly-Clark’s organic sales growth, regular innovations, growth initiatives and a strong international presence make the stock attractive. Further, initiatives to control costs through its FORCE program bode well. Kimberly-Clark is well positioned overseas and has been regularly expanding in key emerging markets, which includes businesses in Asia, Latin America, the Middle East, Eastern Europe and Africa, with particular emphasis on China, Brazil, India and Russia.
Moreover, the spin-off of the health care business into a new company in 2014 is allowing Kimberly-Clark to focus on its core portfolio. It has initiated a restructuring program in order to improve organizational efficiency and underlying profitability, increase the company's flexibility to invest in targeted growth initiatives and offset overhead costs stemming from the spin-off. The health care company is now trading as Halyard Health, Inc. HYH.
However, the company expects to continue to struggle with currency volatility, higher input costs and increased competition in its diapers segment, which can impact profitability and margins in 2015.
Kimberly-Clark has a Zacks Rank #2 (Buy). Its peer CVSL, Inc. CVSL is also worth considering as it holds the same Zacks Rank as Kimberly-Clark. Another stock that is well-positioned in the consumer staples sector is Dean Foods Company DF with a Zacks Rank #2.
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KIMBERLY CLARK (KMB): Free Stock Analysis Report
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