Kimberly-Clark (KMB) Stock Declines While Market Improves: Some Information for Investors

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The latest trading session saw Kimberly-Clark (KMB) ending at $124.23, denoting a -0.19% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.63% for the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.82%.

Shares of the maker of consumer products such as Huggies diapers and Kleenex tissue witnessed a gain of 5.22% over the previous month, beating the performance of the Consumer Staples sector with its gain of 1.73% and the S&P 500's gain of 1.76%.

The investment community will be closely monitoring the performance of Kimberly-Clark in its forthcoming earnings report. The company is predicted to post an EPS of $1.59, indicating a 4.79% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.05 billion, indicating a 2.81% decrease compared to the same quarter of the previous year.

KMB's full-year Zacks Consensus Estimates are calling for earnings of $6.83 per share and revenue of $20.41 billion. These results would represent year-over-year changes of +3.96% and -0.1%, respectively.

It is also important to note the recent changes to analyst estimates for Kimberly-Clark. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Kimberly-Clark holds a Zacks Rank of #4 (Sell).

In terms of valuation, Kimberly-Clark is presently being traded at a Forward P/E ratio of 18.22. For comparison, its industry has an average Forward P/E of 17.78, which means Kimberly-Clark is trading at a premium to the group.

Also, we should mention that KMB has a PEG ratio of 3.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Consumer Products - Staples industry had an average PEG ratio of 2.25 as trading concluded yesterday.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 38% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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