Home products giant Kimberly-Clark reported a strong uptick in profits last quarter. Its stock price rose sharply in response. On Thursday, the Relative Strength Rating for Kimberly-Clark stock jumped 7 points, from 70 to 77, according to IBD MarketSmith.
As the Fed raises its key lending interest rate to banks, and unemployment and layoffs rise, some analysts worry that combination and a weakening economy could result in a recession.
One reason Kimberly-Clark stock rose about 26% since October is that it sells products everyone needs, no matter what state the economy is in, in 175 countries. Investors see the maker of staples including Huggies brand diapers, Kleenex brand tissues and a host of other products as a defensive play. Such stocks tend to do better than tech stocks and other high-growth sectors during a recession.
Kimberly-Clark Stock Nears Benchmark
Meanwhile, the improved RS Rating shows that Kimberly-Clark stock outperformed 77% of all stocks on price performance over the past year.
Research shows that the market's biggest winners, the best stocks to buy and watch, tend to have an 80 or higher RS Rating in the early stages of their moves. See if Kimberly-Clark can continue to rebound, close the three-point gap, and hit that benchmark.
See How IBD Helps You Make More Money In Stocks
Among its other ratings Kimberly-Clark stock has a decent 86 Composite Rating, out of 99. Its Earnings Per Share Rating is a middling 64, reflecting weak profits last year. However, it has a B SMR Rating (sales + profit margins + return on equity) on an A-to-E scale, showing overall strength. Additionally, it carries a B- Accumulation/Distribution Rating, on an A+ to E scale with A+ superb and E dismal. The B- A/D Rating shows that institutions like mutual funds and ETFs are buying more shares than selling.
Last quarter Kimberly-Clark reported 18% higher quarterly sales on a year-over-year basis, to $1.54 per share. That was a sharp turnaround from the prior three quarter in 2022, when its profits shrank. However, its sales growth last quarter was flat with the same quarter a year ago after single-digit growth the prior three stanzas. The company expects to report first quarter results the morning of April 25.
Higher Closes 4 Weeks In A Row
Kimberly-Clark stock has closed higher the last four weeks in a row as the market rally struggles to get off the ground. On Thursday, Kimberly-Clark stock was unchanged from the prior day, and closed at 136.49. It's trying to complete a consolidation with a 145.89 entry. See if it can break out in heavy trading.
Kimberly-Clark stock earns the No. 8 rank among its peers in the Cosmetics/Personal Care industry group. Fragrances, cosmetics and skin-care products maker Inter Parfums and BellRing Brands, which sells ready-to-drink protein shakes, powder and nutrition bars, are among the group's highest-rated stocks. The overall group has a terrific A+ Relative Strength Rating.
IBD's proprietary Relative Strength Rating measures price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the trailing 52 weeks stacks up against all the other stocks in our database.
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