Kimberly Clark Corp. (KMB) hit a new 52-week high last week as the company benefits from lower commodity costs and a value driven consumer environment.

Company Description

Kimberly-CLark Corp., together with its subsidiaries, manufactures health and hygiene products like tissue and diapers worldwide. The company was founded in 1872 and has a market cap of $26.5 billion.

Shares of KMB have recently pulled back a bit after hitting a new 52-high last week just above $67. But the long-term trend is still bullish, helped by the company’s strong Q3 results, reported on Oct 22.

Third-Quarter Results

Sales were mostly flat from last year, down 1.7% to $5 billion. But earnings came in far better than expected at $1.40 per share, 27 cents ahead of the Zacks Consensus Estimate.

The company noted that it benefited from lower commodity prices and growth in its healthcare division, where sales were up 18% from last year.

Estimates

Estimates have been on the rise for the last few months, with the current year up 36 cents to $4.59. The next-year estimate is pegged at $5.19, a solid 12% growth projection.

Valuation

Based on the current year estimate, this stock has some value, trading at just 14X, a discount to the overall market.

The Chart

Shares of KMB recently pulled back from the new 52-week high set last week. The long-term trend is still bullish, take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service.

Zacks Investment Research

1. (TLP) TransMontaigne Partners LP – Trades at a Discount to Overall MarketTransMontaigne Partners LP (TLP) has been a steady player over the last year in a...
2. (KMB) Kimberly-Clark Aquires New Pain Management BusinessKimberly-Clark Corp. (KMB) announced that it acquired Baylis Medical Co.’s pain management business. The acquisition...
3. ($CS) Credit Suisse Group Trades at a Discount to the Overall MarketCredit Suisse Group (CS) has posted huge gains over the last 4 months as the...
4. (DPS) Dr. Pepper Snapple Group Inc. – P/E multiple of 14X – discount to the overall marketDr. Pepper Snapple Group Inc. (DPS) is up more than 100% in the last four...
5. (KMB) Kimberly Clark Corporation – discount to the overall market with a very nice growth projectionKimberly Clark Corporation (KMB) is fresh off the heels of reporting solid second-quarter results in...
6. (CERN) Cerner Corporation: Big Stock Market Winnerby Alexander Green, Advisory Panelist Studies show that the average investor does far worse than...

Search Posts by Tag: Kimberly-Clark Corporation | KMB | Consumer Goods | Personal Products

RSS Feeds by Tag: Kimberly-Clark Corporation | KMB | Consumer Goods | Personal Products |

Other Posts by: vitalstocks | RSS Feed for this author