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Kimberly-Clark (KMB) Gains As Market Dips: What You Should Know

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In the latest trading session, Kimberly-Clark (KMB) closed at $132.40, marking a +1.42% move from the previous day. This change outpaced the S&P 500's 0.93% loss on the day. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq lost 0.17%.

Coming into today, shares of the maker of consumer products such as Huggies diapers and Kleenex tissue had lost 1.16% in the past month. In that same time, the Consumer Staples sector gained 2.29%, while the S&P 500 gained 6.31%.

Wall Street will be looking for positivity from Kimberly-Clark as it approaches its next earnings report date. This is expected to be July 26, 2022. On that day, Kimberly-Clark is projected to report earnings of $1.28 per share, which would represent a year-over-year decline of 12.93%. Meanwhile, our latest consensus estimate is calling for revenue of $4.91 billion, up 4.03% from the prior-year quarter.

KMB's full-year Zacks Consensus Estimates are calling for earnings of $5.80 per share and revenue of $20.1 billion. These results would represent year-over-year changes of -6.15% and +3.41%, respectively.

Investors should also note any recent changes to analyst estimates for Kimberly-Clark. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.34% lower within the past month. Kimberly-Clark currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Kimberly-Clark is currently trading at a Forward P/E ratio of 22.51. Its industry sports an average Forward P/E of 13.16, so we one might conclude that Kimberly-Clark is trading at a premium comparatively.

Investors should also note that KMB has a PEG ratio of 4.5 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Consumer Products - Staples industry currently had an average PEG ratio of 1.69 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 145, putting it in the bottom 43% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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