KMB Stock Gains 10% in 3 Months: Should You Buy Now or Hold Steady?

Kimberly-Clark Corporation’s KMB shares have gained 10.2% over the past three months, significantly outperforming the industry and the Consumer Staples sector’s growth of 5.8% and 7.8%, respectively. The S&P 500 has declined 6.1% in the same period. The stock’s resilience and strong upward momentum reflect the company’s strategic focus on innovation, premium product expansion and operational efficiency.KMB Stock Past Three Months PerformanceImage Source: Zacks Investment ResearchThe KMB stock last traded at $143.03, staying above 50 and 200-day simple moving averages of $135.88 and $135.63, respectively, reinforcing its bullish trend. Let us analyze the fundamentals of Kimberly-Clark to understand the key drivers behind its market position and financial resilience.KMB Stock Trades Above 50-Day & 200-Day Moving AveragesImage Source: Zacks Investment ResearchDecoding Potential Tailwinds Behind KMB’s GrowthKimberly-Clark’s Powering Care strategy is the driving force behind its growth, emphasizing innovation, margin optimization and restructuring for sustainable expansion. The company continues to invest in high-growth segments while leveraging cutting-edge technology to enhance productivity and strengthen its market leadership.Innovation remains a central pillar of Kimberly-Clark’s strategy. The company has launched new premium products across multiple price tiers, reinforcing its brand position and catering to evolving consumer demands. This focus on premiumization has played a key role in driving market share growth across various regions.In 2024, Kimberly-Clark achieved significant market share gains across North America, China, the United Kingdom, South Korea, Australia and Indonesia. Notably, Huggies gained 200 basis points (bps) in China, while Andrex and Kleenex experienced growth in the United Kingdom. South Korea recorded a 400-bps increase in diaper sales, while strong growth in feminine care was observed in Australia and Indonesia. These gains highlight the success of Kimberly-Clark’s superior product offerings and well-executed commercial strategies.Valuation of the KMB StockDespite its recent stock appreciation, Kimberly-Clark remains attractively valued compared with historical and industry benchmarks. KMB’s forward 12-month price-to-earnings ratio is 18.83X, slightly above its median level of 18.66X over the past year but lower than the industry average of 20.66X. This suggests that despite the recent rally, the KMB stock is not overly expensive compared with its earnings potential.KMB P/E Ratio (Forward 12 Months)Image Source: Zacks Investment ResearchWhat May Pull Back Kimberly-Clark’s Momentum?Kimberly-Clark continues to navigate challenges in a dynamic retail and consumer environment. On its fourth-quarter 2024 earnings call, management highlighted softening demand in North America’s professional segment, as well as economic pressures in emerging markets like Southeast Asia and Latin America. Consumers in these regions have reduced purchasing frequency due to macroeconomic challenges, particularly in informal economies.Looking ahead to 2025, the company anticipates a 300-bps adverse impact on net sales due to unfavorable currency movements. Operating profit growth is also expected to face a 300-bps drag, while EPS may experience a 350-400-bps hit due to currency fluctuations and lower income from equity interests.Analysis of the Kimberly-Clark StockThe Kimberly-Clark stock has demonstrated strong growth, supported by its commitment to innovation, premiumization and operational efficiency. The company’s Powering Care strategy has helped it gain market share and strengthen global positioning. However, macroeconomic challenges such as foreign currency fluctuations and softening demand in certain markets may pose headwinds in the near term.Despite these risks, KMB remains attractively valued relative to its earnings potential. All said, current investors are likely to benefit from holding, while new buyers could wait for a better entry point. Kimberly-Clark presently carries a Zacks Rank #3 (Hold).Stocks to ConsiderNu Skin Enterprises, Inc. NUS engages in the development and distribution of various beauty and wellness products worldwide. NUS currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Nu Skin Enterprises’ current financial-year earnings indicates growth of 17.9% from prior-year reported levels. NUS delivered a trailing four-quarter earnings surprise of 38.6%, on average.BRF S.A. BRFS raises, produces and slaughters poultry and pork for processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products. It currently carries a Zacks Rank of 2 (Buy). BRFS delivered a trailing four-quarter earnings surprise of 9.6%, on average.The Zacks Consensus Estimate for BRF S.A.'s current fiscal-year sales and earnings indicates growth of 0.3% and 22.2%, respectively, from the prior-year levels.United Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. It currently carries a Zacks Rank of 2. UNFI delivered a trailing four-quarter earnings surprise of 408.7%, on average.The consensus estimate for United Natural Foods’ current financial-year sales and earnings implies growth of 1.9% and 485.7%, respectively, from the year-ago figures.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kimberly-Clark Corporation (KMB): Free Stock Analysis Report BRF S.A. (BRFS): Free Stock Analysis Report United Natural Foods, Inc. (UNFI): Free Stock Analysis Report Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks