Valued at a market cap of $43.7 billion, New Jersey-based Kenvue Inc. (KVUE) stands as the world’s largest pure-play consumer health company, a testament to over a century of trusted heritage. Its portfolio of iconic brands, such as Aveeno®, BAND-AID® Brand, Johnson’s®, Listerine®, Neutrogena®, and Tylenol® is rooted in science and trusted by healthcare professionals worldwide.
Companies worth $10 billion or more are generally described as “large-cap” stocks, and Kenvue fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, stability, and influence in the consumer defensive sector. With a deep belief in the transformative power of everyday care, Kenvue’s mission is to empower consumers to embrace better health and well-being. By delivering products that resonate in hearts and homes globally, Kenvue continues to redefine how care shapes our daily lives.
Shares of Kenvue are down roughly 6.8% from its November high of $24.46. Over the past three months, the stock has plunged roughly 1.7%, mirroring the Consumer Staples Select Sector SPDR Fund’s (XLP) almost 1.7% drop during the same time frame.
In the longer term, KVUE stock is up roughly 10.7% over the past 52 weeks and 6% on a YTD basis, lagging behind XLP’s 17.3% annual gain and 14.2% return on a YTD basis.
Nevertheless, the stock has remained above its 200-day moving average since early August and is also trading above its 50-day moving average over the same time frame despite some fluctuations.
Following the company’s Q3 earnings results revealed on Nov. 7, which blew past Wall Street’s bottom line expectations, shares of Kenvue closed up more than 3% in the subsequent trading session. While net sales of $3.9 billion for the quarter fell short of Wall Street projections, the company's adjusted EPS of $0.28 managed to narrowly edge past Street forecasts.
To emphasize the stock’s underperformance, Kenvue appears to be lagging behind Fortive Corporation’s (FTV) return of 13.9% over the past year and a 6.6% gain on a YTD basis.
Given the stock’s relative underperformance, Wall Street remains cautiously optimistic on KVUE. The stock has a consensus rating of “Moderate Buy” from the 15 analysts covering it, and the mean price target of $23.61 suggests a marginal premium to its current levels.
