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.
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
