Stock Analysis | Kenvue Outlook - Technical Neutrality and Diverging Analyst Views

Market Snapshot

Headline Takeaway: Kenvue remains in technical neutrality with mixed signals, while its price has risen 1.84% recently.

News Highlights

Recent news suggests a mixed landscape for Kenvue:

• Asia-Pacific White Oil Market Growth: A new market report highlights rising demand in the automotive and personal care sectors, potentially benefiting Kenvue's consumer health products.
• Kohl's Strategy in Beauty & Personal Care: Kohl’s recent Q1 report shows early progress in its beauty and personal care strategy, which could indicate growing market interest in similar product lines.
• Nykaa's Profit Surge: India's Nykaa, a direct competitor in the beauty retail space, saw its profit almost triple in the last quarter, driven by demand for premium products.

Analyst Views & Fundamentals

Analysts are divided in their outlook for Kenvue:

• Average Rating (Simple Mean): 4.00 (calculated from the three most recent ratings: Strong Buy, Buy, and Neutral).
• Weighted Rating (Performance-Weighted): 3.50 (factoring in historical performance and returns of rating firms).
• Rating Consistency: Divergent views among analysts, ranging from Strong Buy to Neutral.
• Price Trend Alignment: The current price has risen by 1.84%, aligning with the weighted expectations of a relatively neutral market.

Key Fundamental Factor Values:

• Net Cash Flow from Operating Activities (YoY Growth Rate %): 44.29% (Internal diagnostic score: 3.00).
• Net Profit / Total Profit (%): 70.94% (Internal diagnostic score: 3.00).
• NPM (Net Profit Margin): 10.94% (Internal diagnostic score: 3.00).
• Current Ratio: 0.98 (Internal diagnostic score: 3.00).
• EV/EBIT: 52.97 (Internal diagnostic score: 0.00).
• Interest Coverage Ratio (EBIT / Interest Expense) (%): 6.56% (Internal diagnostic score: 2.00).

Money-Flow Trends

Money flow across all investor types is negative, indicating caution in the market:

• Overall Inflow Ratio: 46.95% (Internal diagnostic score: 7.82), showing a relatively high level of capital movement despite the negative trend.
• Big-Money (Extra-large) Inflow Ratio: 46.28% (Internal diagnostic score: 7.82), suggesting institutional investors are still active, but cautious.
• Retail (Small) Inflow Ratio: 48.97% (Internal diagnostic score: 7.82), indicating retail investors remain engaged.

Key Technical Signals

Technical indicators are mixed, but there are several bullish signals to consider:

• Ex-Dividend Date: Internal diagnostic score of 7.96, indicating a strong bullish bias.
• Dividend Record Date: Internal diagnostic score of 7.96, also showing a strong bullish bias.
• Earnings Release Date: Internal diagnostic score of 7.59, indicating a neutral but positive bias.
• WR Oversold: Internal diagnostic score of 2.05, suggesting a low signal strength and neutrality.
• Bullish Engulfing: Internal diagnostic score of 4.31, indicating a moderate positive bias.

Recent Chart Patterns:

• On August 11, 14, and 18, 2025, the WR Oversold indicator appeared, signaling potential buying pressure.
• On August 13, 2025, both the Ex-Dividend Date and Dividend Record Date appeared, reinforcing bullish signals.
• On August 7, 2025, a Bullish Engulfing pattern was observed, signaling a potential reversal in price action.

Key Insights: The technical indicators suggest a volatile market with no clear direction, and while there are 3 bullish signals, only 1 bearish signal exists. Investors are advised to adopt a wait-and-see approach.

Conclusion

Given Kenvue's technical neutrality and the current divergence among analysts, a cautious approach seems advisable. The strong bullish signals around the dividend schedule and earnings release are encouraging, but the WR Oversold indicator suggests limited momentum. Investors may want to watch the upcoming earnings report and consider waiting for a pull-back before committing to a long position.