Based in Dallas, Texas, Kimberly-Clark Corporation (KMB) is a global leader in personal care and consumer tissue products. With a market cap of $46.6 billion, the company operates through three primary segments: Personal Care; Consumer Tissue; and K-C Professional, serving diverse markets worldwide.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Kimberly-Clark fits this criterion perfectly, exceeding the mark. Kimberly-Clark is renowned for its extensive lineup of paper-based consumer products, including well-known brands such as Kleenex, Kotex, and Cottonelle.
However, Kimberly-Clark has fallen 2.8% from its 52-week high of $142.20, achieved on June 20. Despite this recent pullback, shares of KMB gained 9.7% over the past three months, outperforming the broader S&P 500 Index's ($SPX) nearly 5% increase during the same time frame.
However, in the longer term, KMB is up 13.8% on a YTD basis, slightly lagging behind the SPX's 14.5% gains. Also, KMB stock has risen 1.4% over the past 52 weeks, significantly underperforming the SPX's 26.2% returns over the same time frame.
Yet, KMB stock has been trading above both its 50-day and 200-day moving averages since March with few fluctuations, indicating a bullish price trend.
KMB has been underperforming over the past year due to persistent margin pressures, limited pricing power, supply chain challenges, and concerns over its strategic positioning and valuation. However, KMB stock jumped almost 5.5% on Apr. 23 after the company surpassed its Q1 earnings expectations and raised its fiscal 2024 sales and profit forecasts, fueled by strong demand and effective price increases for its premium products.
To underscore KMB's underperformance, rival The Procter & Gamble Company (PG) has gained 12.4% over the past 52 weeks and 13.9% on a YTD basis, outpacing KMB’s returns during both these periods.
Given the stock's mixed performance, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from the 17 analysts covering the stock, and it is currently trading below the mean price target of $143.12.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
