Kimberly-Clark Corporation KMB last traded at $139.53, demonstrating strong upward momentum and price stability. The stock trades well above its 50 and 200-day simple moving averages (“SMA”) of $132.99 and $135.18, respectively. Now investors must decide how to approach this stock, should they cash in gains, make fresh investments or maintain their current stake.

KMB 50 and 200-day Simple Moving Averages

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Kimberly-Clark stock has risen 6.2% in the past three months, outpacing the industry’s growth of 2.5% and the S&P 500's decline of 4.8%. It has also outperformed the broader Consumer Staples sector which posted growth of 5.1%.

Kimberly-Clark is currently 7.3% below its 52-week high of $150.45, attained on March 10. This pullback from the recent peak may suggest challenges in sustaining upward momentum. However, KMB could also present an opportunity for growth if the stock breaks through its previous high.

KMB Stock Past Three Month Performance

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Kimberly-Clark’s Growth Drivers

Kimberly-Clark's Powering Care strategy drives growth, efficiency and organizational alignment by focusing on three core areas: accelerating innovation, optimizing margins and restructuring for sustainable growth. Through investments in high-growth segments and cutting-edge innovations, the company continues to enhance productivity and reinforce its global leadership position.

Innovation remains a central pillar of this strategy, with Kimberly-Clark consistently launching new products across all price tiers. By offering differentiated, high-value solutions, the company aims to drive premiumization, meet evolving consumer needs and strengthen brand loyalty. These efforts are designed to support long-term growth and market leadership in key categories.

Kimberly-Clark achieved significant market share growth across several key regions in 2024, reinforcing its competitive positioning globally. In North America, the company expanded its presence in personal care, while in China, the baby care brand saw notable growth. Tissue brands performed well in the United Kingdom and in Asia-Pacific, diaper and feminine care categories experienced strong momentum.

These achievements reflect the success of Kimberly-Clark’s strategic approach, offering superior products at various price points while implementing effective commercial strategies to deepen consumer loyalty and drive sustained growth.

KMB Stock Valuation

From a valuation perspective, Kimberly-Clark is trading at a discount compared with its historical and industry benchmarks. The company’s forward 12-month price-to-earnings multiple of 18.4X remains below its one-year median of 18.66X and the industry average of 21.22X. This suggests that the KMB stock may still be undervalued relative to its earnings potential.

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What Might Hurt KMB Stock?

Kimberly-Clark continues to navigate a challenging consumer and retail landscape, which has been weighing on its performance. On its fourth-quarter 2024 earnings call, management noted softening demand in North America’s professional segment, while economic pressures in emerging markets, such as Southeast Asia and Latin America, have led to reduced purchasing frequency, particularly in regions with informal economies.

The company’s extensive global footprint also makes it highly vulnerable to foreign currency fluctuations. A stronger U.S. dollar puts pressure on margins, especially when pricing adjustments are limited. Currency headwinds have already affected performance, with the fourth quarter of 2024 revenues declining 0.8% year over year to $4.93 billion. Unfavorable foreign exchange rates reduced sales by approximately 1.7%, while the divestiture of the Personal Protective Equipment business contributed to an additional 1.4% decline. 

Looking ahead to 2025, the company expects net sales to be adversely impacted by nearly 300 basis points, due to unfavorable currency rates. Operating profit growth is also anticipated to face a 300-basis-point drag from currency fluctuations. Moreover, EPS is expected to reflect an adverse impact of 350-400 basis points from currency translation, including the effect on income from equity interests.

What Should Be Your Approach to KMB?

Kimberly-Clark continues to exhibit a strong growth trajectory, backed by its Powering Care strategy, market share expansion and premiumization efforts. Its focus on innovation and efficiency supports long-term competitiveness, while valuation suggests a potential upside.

However, investors should remain cautious about near-term risks, including currency volatility and demand softness in key markets. Given these factors, long-term investors may consider holding KMB shares. Currently, Kimberly-Clark carries a Zacks Rank #3 (Hold).

Stocks to Consider

Nu 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.

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 (Buy). 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. 

Post Holdings, Inc. POST operates as a consumer-packaged goods holding company in the United States and internationally. It currently carries a Zacks Rank of 2. POST delivered a trailing four-quarter earnings surprise of 22.3%, on average.

The Zacks Consensus Estimate for Post Holdings’ current fiscal-year sales and earnings indicates growth of 0.3% and 2.2%, respectively, from the prior-year levels.

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Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report

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Nu Skin Enterprises, Inc. (NUS) : Free Stock Analysis Report

Post Holdings, Inc. (POST) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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