With a market cap of $47.8 billion, Kimberly-Clark Corporation (KMB) is a global leader in manufacturing and marketing personal care and hygiene products. The company operates through three main segments: Personal Care, Consumer Tissue, and K-C Professional. Its well-known brands include Huggies, Kotex, Depend, Kleenex, Scott, and Cottonelle, catering to both consumer and professional markets.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and Kimberly-Clark fits this criterion perfectly. Headquartered in Dallas, Texas, Kimberly-Clark distributes its products worldwide through supermarkets, mass merchandisers, drugstores, e-commerce, and various institutional channels.
However, the company pulled back 6.4% from its 52-week high of $150.45, recorded on Mar. 10. Shares of Kimberly-Clark have gained 7.6% over the past three months, outperforming the Consumer Staples Select Sector SPDR Fund’s (XLP) 2.9% decrease over the same time frame.
Longer term, KMB stock is up 7.5% on a YTD basis, outperforming XLP’s 1.6% rise. Moreover, shares of Kimberly-Clark have surged 11.2% over the past 52 weeks, compared to XLP’s 5.2% return over the same time frame.
KMB stock has been trading above its 50-day and 200-day moving averages since February.
Shares of Kimberly-Clark recovered marginally following its Q4 2024 earnings release on Jan. 28 due to better-than-expected sales of $4.9 billion, despite a slight year-over-year decline. Additionally, adjusted operating profit increased 2.1% to $684 million, supported by a 50 basis point improvement in adjusted gross margin, which offset higher manufacturing costs and strategic investments. Investors also reacted positively to the quarterly dividend increase and the company’s reaffirmed 2025 outlook, which expects high single-digit growth in adjusted operating profit.
In comparison, rival Colgate-Palmolive Company (CL) has underperformed KMB. Shares of Colgate-Palmolive have gained 3.8% over the past 52 weeks and 1.3% on a YTD basis.
Despite KMB’s outperformance, analysts are cautious about its prospects. The stock has a consensus rating of “Hold” from the 19 analysts covering the stock, and as of writing, it is trading below the mean price target of $142.83.
