Was I Right About Kimberly-Clark (KMB)?

Ladies and gentlemen, let's dive into the world of consumer staples and see if I was right about Kimberly-Clark Corporation (KMB) when I discussed it a year ago. We all know that the market is a fickle beast, and predicting its movements is like trying to catch a greased pig. But let's see how KMB has fared against the broader market and its peers.

First things first, let's talk about the stock performance. As of March 14, 2025, KMB's stock price was $131.41, which is 13.6% below its 52-week high of $149.31 and 10.5% above its 52-week low of $117.67. The average stock price for the last 52 weeks is $134.23, indicating that the stock has been relatively stable but has not shown significant growth. Now, let's compare this to the broader market. The S&P 500 has shown a positive trend in the past year, with the index reaching new highs and showing resilience despite economic uncertainties. This suggests that KMB's performance has lagged behind the broader market's gains.



Now, let's talk about KMB's performance compared to its peers. Procter & Gamble (PG) has a market cap of $387.970B and a PE ratio of 24.48, while Colgate-Palmolive (CL) has a market cap of $71.529B and a PE ratio of 24.66. These companies have shown stronger performance in terms of market capitalization and earnings growth, indicating that they may have outperformed KMB in the past year.

But let's not forget about the specific factors that have influenced KMB's stock price over the past year. Earnings reports, market conditions, and strategic initiatives have all played a role in shaping KMB's performance. For instance, KMB's earnings reports have shown mixed results, with the company meeting its Q4 earnings estimates but reporting a decline in year-over-year earnings. The company's adjusted earnings were $1.50 per share, in line with the Zacks Consensus Estimate, but down 0.7% year over year. This decline in earnings, coupled with the company's relatively stable stock price, suggests that KMB's performance has been lackluster compared to the broader market and other consumer staples companies.

Market conditions, particularly the actions of the Federal Reserve and the White House, have also influenced KMB's stock price. A strong housing market is essential in preventing a recession, and the possibility of new tariffs has likely impacted investor sentiment and, consequently, KMB's stock price.

Finally, let's talk about KMB's strategic initiatives. The company launched its transformative, multi-year Powering Care strategy in 2024, which successfully rewired the organization into three powerhouse segments with world-class functional support. This strategy aimed to drive volume gains, improve product mix, and generate significant efficiencies, enabling reinvestment in its brands, new capabilities, and generating attractive returns to its shareholders. The company's full-year results exceeded its new long-term growth algorithm, supported by consistent execution across the organization. This strategic initiative has established a strong foundation to accelerate the strategy in 2025 and beyond, contributing to the stock's performance. Additionally, KMB declared an increased quarterly dividend of $1.26 per share, a level 3.3 percent higher than the previous year, which has likely attracted dividend-seeking investors and supported the stock price.



So, was I right about KMB? Well, the stock has shown mixed results compared to the broader market and its peers, but it has also demonstrated resilience and strategic initiatives that could drive future growth. As always, do your own research and make informed investment decisions. And remember, the market is a wild ride, so buckle up and hold on tight!