Kimberly-Clark hits 52-week low amid sector rotation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 26 2024
0mins
Should l Buy KMB?
Source: SeekingAlpha
Kimberly-Clark Corp's stock fell by 3.01% today, hitting a 52-week low amid a generally positive market environment, with the Nasdaq-100 up 1.19% and the S&P 500 up 0.81%.
This decline occurs despite the broader market strength, indicating a potential sector rotation as investors shift their focus. Kimberly-Clark's recent announcement of plans to invest over $2 billion to expand U.S. manufacturing capacity and its consistent dividend payments highlight its long-term growth potential, but the stock's current performance reflects a shift in investor sentiment.
The implications of this movement suggest that while Kimberly-Clark remains a strong player in the market, the recent price action may be influenced by broader trends in investor preferences, particularly towards sectors that are currently outperforming.
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Analyst Views on KMB
Wall Street analysts forecast KMB stock price to rise
14 Analyst Rating
5 Buy
8 Hold
1 Sell
Moderate Buy
Current: 109.900
Low
95.00
Averages
127.71
High
162.00
Current: 109.900
Low
95.00
Averages
127.71
High
162.00
About KMB
Kimberly-Clark Corporation is a global company focused on delivering products and solutions that provide better care. The Company's segments include North America and International Personal Care. The North America segment consists of products encompassing each of its five global daily-need categories across consumer and professional channels including disposable diapers, training and youth pants, swim pants, baby wipes, feminine and incontinence care products, reusable underwear, facial and bathroom tissue, paper towels, napkins, wipers, tissue, towels, soaps and sanitizers and other related products. International Personal Care segment consists of three core categories: Baby & Child Care, Adult Care and Feminine Care, including disposable diapers, training and youth pants, swim pants, baby wipes, feminine and incontinence care products, reusable underwear and other related products. Its portfolio of brands includes Huggies, Kleenex, Scott, Kotex, Cottonelle, Depend, and Pull-Ups.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Kimberly-Clark Unveils Acquisition Strategy at CAGNY Conference
- Acquisition Strategy Presentation: At the 2026 CAGNY Conference, Kimberly-Clark outlined its acquisition plan for Kenvue, which is expected to enhance market share and create generational value through resource integration, further solidifying its leadership in the global personal care market.
- Transformation Success: Since launching the 'Powering Care' transformation in 2024, Kimberly-Clark has achieved market share growth or stability in two-thirds of its country/category combinations, indicating strong momentum in its core business that is likely to drive future performance improvements.
- Innovation-Driven Growth: CEO Mike Hsu emphasized that the company's innovative capabilities allow it to provide deep connections at critical moments in consumers' lives, with expectations to enhance brand loyalty and shareholder value through ongoing consumer-inspired innovation.
- Commitment to Sustainability: Kimberly-Clark is dedicated to supporting a healthy planet and strong communities through sustainable practices, showcasing its brand influence across 175 countries and territories, which further drives long-term business growth.
See More
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- Strategic Importance of Kenvue Acquisition: At the CAGNY Conference, Kimberly-Clark emphasized that by acquiring Kenvue, the company will leverage its fast and agile operating model and differentiated capabilities to capture growth trends in key markets, thereby raising care standards and creating generational value.
- Innovation-Driven Growth: Since launching the 'Powering Care' initiative in 2024, innovation has contributed over 75% of Kimberly-Clark's growth, showcasing a robust R&D pipeline in personal care that is designed to drive incremental growth and reduce costs over the next three years.
- Brand Building and Market Competition: Kimberly-Clark is enhancing brand loyalty through best-in-class creative and digital capabilities, with expected benefits from mid-to-high single-digit growth rates in baby care, women's health, and active aging, further solidifying its market position.
- Execution Improvement and Productivity: The 'Powering Care' operating model has reshaped cross-functional collaboration, achieving gross productivity in the 6% range of cost of goods sold over the past two years, significantly enhancing execution and productivity in key markets.
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- Market Rebalancing Trend: Harrington highlights that investors are recognizing the “irrationally wide” performance and valuation gaps between big tech and old economy stocks, prompting a portfolio rebalancing to mitigate uncertainties posed by artificial intelligence disruptions.
- Quality Dividend Stock Picks: Harrington recommends Kimberly-Clark, which has gained over 7% year-to-date and offers a 4.66% dividend yield, emphasizing its 92 years of dividend payments and 54 years of increases, showcasing its stable financial performance and growth potential.
- Attractive REIT Investment: Vici Properties, a REIT leasing to Las Vegas casinos, offers a 6.06% dividend yield, with tenants experienced in navigating economic downturns, suggesting continued growth and dividend increases in the future.
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- Tariff Legality Review: The Supreme Court is poised to rule on the legality of tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA), which could significantly impact pricing and margin strategies for consumer giants like Costco and Procter & Gamble.
- Potential EBITDA Uplift: Morgan Stanley's analysis suggests that a rollback or limitation of IEEPA-based tariffs could lead to a mid-single-digit uplift in EBITDA for affected retailers, providing notable margin support amid economic pressures.
- Retailer Response Strategies: While awaiting the ruling, retailers such as Costco and Amazon are leveraging strong negotiating power and value-oriented business models to navigate tariff pressures, ensuring they protect consumer value even as costs rise.
- Optimistic Market Outlook: Despite tariffs remaining a defining feature of the trade landscape, analysts believe that consumer spending may receive additional support from tax refunds, making the retail and consumer staples sectors attractive investment opportunities.
See More
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- Acquisition Progress: Kenvue's acquisition proposal with Kimberly-Clark received overwhelming support from approximately 99% of shareholders, with the transaction expected to close in the second half of 2026, marking a significant step towards creating a global health and wellness leader and enhancing market competitiveness.
- Stock Fluctuations: Kenvue shares fell 0.32% to $18.48 during Thursday's premarket trading, reflecting short-term strength despite an 11.55% decline over the past 12 months, indicating market uncertainty.
- Financial Outlook: Kenvue is set to report earnings on February 17, 2026, with an estimated EPS of 22 cents and revenue of $3.70 billion, showing revenue growth but a decline in EPS from the previous year, highlighting profitability pressures.
- Analyst Ratings: The stock currently holds a Hold rating with an average price target of $20.18, and recent downgrades from Jefferies and Canaccord Genuity indicate a cautious market outlook regarding its future performance.
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- Market Shift: There is a significant rotation from software stocks to safer investments like consumer staples.
- Investor Sentiment: Investors are concerned that advancements in AI, such as ChatGPT, may negatively impact service-oriented businesses while benefiting manufacturers of household products.
See More
Kimberly-Clark Unveils Acquisition Strategy at CAGNY Conference
- Acquisition Strategy Presentation: At the 2026 CAGNY Conference, Kimberly-Clark outlined its acquisition plan for Kenvue, which is expected to enhance market share and create generational value through resource integration, further solidifying its leadership in the global personal care market.
- Transformation Success: Since launching the 'Powering Care' transformation in 2024, Kimberly-Clark has achieved market share growth or stability in two-thirds of its country/category combinations, indicating strong momentum in its core business that is likely to drive future performance improvements.
- Innovation-Driven Growth: CEO Mike Hsu emphasized that the company's innovative capabilities allow it to provide deep connections at critical moments in consumers' lives, with expectations to enhance brand loyalty and shareholder value through ongoing consumer-inspired innovation.
- Commitment to Sustainability: Kimberly-Clark is dedicated to supporting a healthy planet and strong communities through sustainable practices, showcasing its brand influence across 175 countries and territories, which further drives long-term business growth.
See More
Kimberly-Clark Unveils Growth Strategy at CAGNY Conference
- Strategic Importance of Kenvue Acquisition: At the CAGNY Conference, Kimberly-Clark emphasized that by acquiring Kenvue, the company will leverage its fast and agile operating model and differentiated capabilities to capture growth trends in key markets, thereby raising care standards and creating generational value.
- Innovation-Driven Growth: Since launching the 'Powering Care' initiative in 2024, innovation has contributed over 75% of Kimberly-Clark's growth, showcasing a robust R&D pipeline in personal care that is designed to drive incremental growth and reduce costs over the next three years.
- Brand Building and Market Competition: Kimberly-Clark is enhancing brand loyalty through best-in-class creative and digital capabilities, with expected benefits from mid-to-high single-digit growth rates in baby care, women's health, and active aging, further solidifying its market position.
- Execution Improvement and Productivity: The 'Powering Care' operating model has reshaped cross-functional collaboration, achieving gross productivity in the 6% range of cost of goods sold over the past two years, significantly enhancing execution and productivity in key markets.
See More
Investors Shift to High Dividend Stocks to Mitigate AI Risks
- Dividend Stocks Outperform: Investor Jenny Harrington notes that dividend-paying stocks have excelled this year, with the iShares Select Dividend ETF up nearly 11% year-to-date, contrasting with the S&P 500's flat performance, indicating a shift in investor preference towards traditional economy stocks.
- Market Rebalancing Trend: Harrington highlights that investors are recognizing the “irrationally wide” performance and valuation gaps between big tech and old economy stocks, prompting a portfolio rebalancing to mitigate uncertainties posed by artificial intelligence disruptions.
- Quality Dividend Stock Picks: Harrington recommends Kimberly-Clark, which has gained over 7% year-to-date and offers a 4.66% dividend yield, emphasizing its 92 years of dividend payments and 54 years of increases, showcasing its stable financial performance and growth potential.
- Attractive REIT Investment: Vici Properties, a REIT leasing to Las Vegas casinos, offers a 6.06% dividend yield, with tenants experienced in navigating economic downturns, suggesting continued growth and dividend increases in the future.
See More
Supreme Court Set to Rule on Tariff Authority
- Tariff Legality Review: The Supreme Court is poised to rule on the legality of tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA), which could significantly impact pricing and margin strategies for consumer giants like Costco and Procter & Gamble.
- Potential EBITDA Uplift: Morgan Stanley's analysis suggests that a rollback or limitation of IEEPA-based tariffs could lead to a mid-single-digit uplift in EBITDA for affected retailers, providing notable margin support amid economic pressures.
- Retailer Response Strategies: While awaiting the ruling, retailers such as Costco and Amazon are leveraging strong negotiating power and value-oriented business models to navigate tariff pressures, ensuring they protect consumer value even as costs rise.
- Optimistic Market Outlook: Despite tariffs remaining a defining feature of the trade landscape, analysts believe that consumer spending may receive additional support from tax refunds, making the retail and consumer staples sectors attractive investment opportunities.
See More
Kenvue Acquisition Progress Significant Amid Stock Fluctuations
- Acquisition Progress: Kenvue's acquisition proposal with Kimberly-Clark received overwhelming support from approximately 99% of shareholders, with the transaction expected to close in the second half of 2026, marking a significant step towards creating a global health and wellness leader and enhancing market competitiveness.
- Stock Fluctuations: Kenvue shares fell 0.32% to $18.48 during Thursday's premarket trading, reflecting short-term strength despite an 11.55% decline over the past 12 months, indicating market uncertainty.
- Financial Outlook: Kenvue is set to report earnings on February 17, 2026, with an estimated EPS of 22 cents and revenue of $3.70 billion, showing revenue growth but a decline in EPS from the previous year, highlighting profitability pressures.
- Analyst Ratings: The stock currently holds a Hold rating with an average price target of $20.18, and recent downgrades from Jefferies and Canaccord Genuity indicate a cautious market outlook regarding its future performance.
See More
Consumer Staples Appear Expensive: Explore Clorox and Other High-Yield Stocks with Strong Dividends.
- Market Shift: There is a significant rotation from software stocks to safer investments like consumer staples.
- Investor Sentiment: Investors are concerned that advancements in AI, such as ChatGPT, may negatively impact service-oriented businesses while benefiting manufacturers of household products.
See More
