Is Kimberly-Clark Stock Underperforming the S&P 500?
With a market cap of $43.1 billion, Kimberly-Clark Corporation (KMB) is a prominent consumer products company best known for its portfolio of personal care and tissue brands. Founded in 1872 and headquartered in Irving, Texas, the company operates in over 175 countries.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Kimberly-Clark fits this criterion perfectly, exceeding the mark. It focuses on essential products tied to everyday consumer needs, giving it a relatively resilient business model. The company is also considered a dividend aristocrat, having consistently returned capital to shareholders through dividends for decades.
Despite the notable strengths, shares of the consumer product behemoth have retreated 13% from their 52-week high of $150.45. Shares of Kimberly-Clark have declined 1.3% over the past three months, underperforming the S&P 500 Index ($SPX), which has returned 8.4% over the same time frame.
Longer term, KMB stock is down marginally on a YTD basis, underperforming SPX’s 10.7% rise. Moreover, shares of Kimberly-Clark have dipped 11% over the past 52 weeks, compared to $SPX’s 19% rise over the same time frame.
The stock has fallen below its 50-day and 200-day moving averages since early June, indicating a downtrend.
On Aug. 1, KMB shares rose 4.8% after reporting its Q2 earnings. The company delivered a strong operational quarter, with exceptional volume gains and organic growth, especially notable in North America. Its adjusted EPS of $1.92 surpassed Wall Street expectations of $1.68. The company’s revenue stood $4.2 billion, down 1.6% year over year.
Nevertheless, in comparison, rival The Procter & Gamble Company (PG) has faced similar challenges as Kimberly-Clark stock. Shares of Procter & Gamble have decreased 9.4% over the past 52 weeks and 4.9% on a YTD basis.
The stock has a consensus rating of “Moderate Buy” from the 20 analysts covering it, and the mean price target of $142.89 implies an upswing potential of 9.1% from the current market prices.
On the date of publication, Kritika Sarmah 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.