Kimberly-Clark (KMB) Increases Yet Falls Behind Market: What Investors Need to Know
In the latest market close, Kimberly-Clark (KMB) reached $118.81, with a +0.27% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 1.18%. On the other hand, the Dow registered a gain of 0.87%, and the technology-centric Nasdaq increased by 1.6%.
Prior to today's trading, shares of the maker of consumer products such as Huggies diapers and Kleenex tissue had lost 6.8% over the past month. This has was narrower than the Consumer Staples sector's loss of 7.26% and lagged the S&P 500's loss of 5.17% in that time.
The investment community will be closely monitoring the performance of Kimberly-Clark in its forthcoming earnings report. The company is scheduled to release its earnings on October 24, 2023. It is anticipated that the company will report an EPS of $1.58, marking a 12.86% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.13 billion, indicating a 1.59% increase compared to the same quarter of the previous year.
KMB's full-year Zacks Consensus Estimates are calling for earnings of $6.41 per share and revenue of $20.45 billion. These results would represent year-over-year changes of +13.85% and +1.36%, respectively.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. Kimberly-Clark is currently a Zacks Rank #3 (Hold).
In terms of valuation, Kimberly-Clark is presently being traded at a Forward P/E ratio of 18.49. Its industry sports an average Forward P/E of 18.49, so one might conclude that Kimberly-Clark is trading at no noticeable deviation comparatively.
Investors should also note that KMB has a PEG ratio of 2.26 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. By the end of yesterday's trading, the Consumer Products - Staples industry had an average PEG ratio of 2.14.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% 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.
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Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report
