Kimberly-Clark Corporation (KMB), headquartered in Dallas, Texas, manufactures personal care and consumer tissue products in the U.S. and internationally. Valued at a market cap of $43.8 billion, Kimberly-Clark operates through the Personal Care, Consumer Tissue, and K-C Professional segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Kimberly-Clark fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the household & personal products industry.
Kimberly-Clark's market leadership stems from its globally recognized brands, such as Huggies, Kleenex, and Scott, which command strong customer loyalty. The company’s extensive distribution network and strategic partnerships enable it to maintain a significant market presence across developed and emerging markets.
Despite its widespread reputation, Kimberly-Clark shares have fallen back 12% from their 52-week high of $149.30 met on Sep. 5. KMB have plunged 6.7% over the past three months, underperforming the Dow Jones Industrials Average’s ($DOWI) 1.9% gains during the same time frame.
Over the longer term, KMB has underperformed DOWI. KMB gained 10.5% over the past 52 weeks, lagging behind DOWI’s 15.5% surge during the same time frame. Moreover, in 2024, KMB rallied 8.1%, compared to DOWI’s 13.7% returns on a YTD basis.
To confirm the bearish trend, KMB has been trading below its 50-day and 200-day moving average since early December.
On Oct. 22, shares of KMB plunged 4.5% after it announced its Q3 earnings report. Its adjusted profit of $1.83 per share surpassed Street’s projections, but revenue of $4.95 billion fell short of market expectations.
In the competitive landscape of personal household products, Kimberly-Clark’s top competitor, Colgate-Palmolive Company (CL), has substantially outperformed KMB. CL gained 19% over the past 52 weeks and 15.5% in 2024.
Among the 19 analysts covering the KMB stock, the consensus rating is a “Moderate Buy.” The mean target price of $149 represents a potential upside of 13.5% from current price levels.
