Stock of the Day

April 27, 2020

Kimberly-Clark (KMB)

$140.28
+$1.31 (+0.9%)
Market Cap: $46.09B

About Kimberly-Clark

Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care and consumer tissue products in the United States. It operates through three segments: Personal Care, Consumer Tissue, and K-C Professional. The company's Personal Care segment offers disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear, and other related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Thinx, Poise, Depend, Plenitud, Softex, and other brand names. Its Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve, and other brand names. The company's K-C Professional segment offers wipers, tissues, towels, apparel, personal protective equipment, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands. It also sells household use products directly to supermarkets, mass merchandisers, drugstores, warehouse clubs, variety and department stores, and other retail outlets, as well as through other distributors and e-commerce; and away-from-home use products directly to distributors, manufacturing, lodging, office building, food service, and public facilities, as well as through e-commerce. Kimberly-Clark Corporation was founded in 1872 and is headquartered in Dallas, Texas.

Kimberly-Clark Bull Case

Here are some ways that investors could benefit from investing in Kimberly-Clark Co.:

  • Kimberly-Clark Co. recently reported earnings per share of $1.50, meeting analysts' expectations, which indicates strong financial performance and stability.
  • The company has a high return on equity of 201.43%, suggesting effective management and a strong ability to generate profits from shareholders' equity.
  • With a recent increase in the quarterly dividend to $1.26 per share, Kimberly-Clark Co. demonstrates a commitment to returning value to shareholders, which can be attractive for income-focused investors.
  • The current stock price is approximately $139.01, which may present a buying opportunity for investors looking to enter at a favorable valuation.
  • Analysts have a consensus rating of "Hold" with a target price of $143.64, indicating potential for price appreciation in the near term.

Kimberly-Clark Bear Case

Investors should be bearish about investing in Kimberly-Clark Co. for these reasons:

  • Recent analyst ratings show a mix of opinions, with two analysts issuing sell ratings, which may indicate concerns about the company's future performance.
  • JPMorgan Chase & Co. has reduced their target price for Kimberly-Clark Co. from $140.00 to $124.00, reflecting a more cautious outlook on the stock's potential growth.
  • The company's dividend payout ratio is 64.64%, which, while sustainable, may limit the ability to reinvest profits back into the business for growth.
  • Insider activity shows a significant sale by a vice president, which could raise concerns about the company's future prospects from those within the organization.
  • Market conditions and competition in the personal care and consumer tissue sectors may pose risks to Kimberly-Clark Co.'s market share and profitability.

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