Kimberly-Clark Corporation (KMB), headquartered in Dallas, Texas, is a leading manufacturer of personal care and consumer tissue products in the United States and internationally. Valued at a market cap of $44.7 billion, Kimberly-Clark operates through the Personal Care, Consumer Tissue, and K-C Professional segments.
The personal care behemoth has underperformed the broader market over the past year. Over the past 52 weeks, KMB has soared 12.2%, lagging behind the S&P 500 Index’s ($SPX) 30.6% returns. In 2024, KMB rallied 11.9%, compared to SPX’s 23.6% gains on a YTD basis.
Narrowing the focus, KMB outperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 15.9% returns over the past 52 weeks and 11.8% gains on a YTD basis.
On Oct. 22, shares of KMB plunged 4.5% after it announced its Q3 earnings report. Its adjusted profit of $1.83 per share surpassed Street’s projections but revenue of $4.95 billion fell short of market excpectations.
For the current fiscal year, ending in December, analysts anticipate Kimberly-Clark’s EPS to grow 10.7% annually to $7.27. The company’s earnings surprise history is mixed. It surpassed the consensus estimates in three of the past four quarters while missing on one other occasion.
Among the 19 analysts covering the KMB stock, the consensus rating is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, one “Moderate Buy,” 10 “Holds,” and two “Strong Sells.”
This configuration has been stable over the past months.
On Oct. 21, RBC Capital analyst Nik Modi maintained an “Outperform” rating on KMB with a price target of $165.
KMB’s mean price target of $149.17 represents a premium of 9.7% from current price levels. The street-high target of $175 indicates a potential upside of 28.7%.
