Kenvue Outlook - Technical Weakness and Mixed Fundamentals

1. Market Snapshot

Takeaway: Kenvue (KVUE) is showing strong fundamentals but is weighed down by weak technical indicators and bearish price trends.

2. News Highlights

• Beauty Retailer Nykaa Surges in Profit: India's Nykaa reported a near-tripling of profit in Q4 due to strong demand for premium beauty products. This could influence consumer trends and indirectly impact Kenvue's personal care segment.
• ZEBRA Launches Non-Toxic Lip Gloss: ZEBRA, a clean beauty brand, has launched a non-toxic lip gloss. This reinforces the growing demand for safe personal care products, a trend that Kenvue should watch closely.
• Meta Teams Up with Anduril for AI Military Products: Meta is partnering with Anduril to develop AI-powered military tech. While unrelated to Kenvue’s core business, it highlights broader AI adoption trends.

3. Analyst Views & Fundamentals

The average analyst rating for Kenvue is 3.00 (simple mean), while the performance-weighted rating is 1.65. Ratings are inconsistent, with one recent neutral rating from Evercore ISI Group. This contrasts with the current price trend of a -12.18% decline, suggesting analysts are not optimistic about near-term performance.

Key fundamental values include:

• Net Cash Flow from Operating Activities (YoY Growth Rate): 44.29% (model score: 9.03)
• Net Profit / Total Profit: 70.94% (model score: 9.03)
• ROA: 1.55% (model score: 9.03)
• NPM: 10.94% (model score: 9.03)
• EV/EBIT: 66.34 (model score: 9.03)

4. Money-Flow Trends

Big-money and retail investors are both showing negative trends. The fund-flow score is 7.83 (good), but inflow ratios for all sizes of investors are below 50%:

• Small Investor Inflow Ratio: 49.83%
• Medium Investor Inflow Ratio: 49.29%
• Large Investor Inflow Ratio: 49.42%
• Extra-Large Investor Inflow Ratio: 48.82%

This suggests that despite the positive score, investor sentiment remains cautious.

5. Key Technical Signals

Technical indicators show weak momentum, with 3 bearish and 1 neutral signals. No bullish indicators are active in the last five days. Here are the internal diagnostic scores (0-10):

• Long Lower Shadow: 1.07 – Biased bearish
• WR Oversold: 1.68 – Neutral bias
• RSI Oversold: 1.86 – Neutral bias
• Bearish Engulfing: 6.48 – Neutral rise

Recent chart patterns include:

• Sep 5, 2025: Long Lower Shadow and RSI Oversold
• Sep 3, 2025: WR Oversold
• Sep 8, 2025: RSI Oversold

Overall, the technical score is 2.77 (weak), and it is advised to avoid the stock at this time due to the dominance of bearish signals.

6. Conclusion

While Kenvue shows strong underlying fundamentals, the current technical indicators and negative price trends make it a risky proposition. Investors should consider waiting for a pull-back or clearer signs of momentum reversal before entering a position.