Core Insights - Kimberly-Clark Corporation, headquartered in Dallas, Texas, has a market cap of approximately $34.7 billion and is known for its leading brands such as Huggies, Kleenex, Scott, Kotex, and Depend [1] Stock Performance - Over the past 52 weeks, KMB stock has decreased by 19.4%, underperforming the S&P 500 Index, which gained 14.4%. However, in 2026, KMB shares have increased nearly 5% year-to-date, outperforming the broader index's 1.4% rise [2] Financial Results - Following the release of its fourth-quarter 2025 results, KMB shares fell 1.1%. Revenue slightly decreased year-over-year to $4.08 billion, aligning closely with the consensus estimate of $4.09 billion. Adjusted EPS rose 24% to $1.86, surpassing analysts' forecast of $1.81 [3][4] Operational Strategy - Cost controls and steady demand for core products like Huggies and Kleenex have supported financial results. The company has implemented job cuts and exited lower-margin operations, enhancing margin stability [4] - Kimberly-Clark has expanded its affordable product lineup while maintaining premium features and brand equity. The company is also advancing its transformation with a $48.7 billion acquisition of Kenvue Inc., expected to close by year-end [5] Future Outlook - For fiscal 2026, analysts project diluted EPS of $7.06, indicating a 6.2% decline. Despite this, Kimberly-Clark has consistently beaten EPS estimates in the past four quarters, demonstrating operational outperformance that mitigates concerns about near-term pressures [6]

Core Insights - The consumer staples sector has gained momentum in 2023, with a year-to-date increase of 13.2%, ranking third among S&P 500 sectors [3][10] - A shift in market preference from overvalued growth sectors to value-oriented sectors has benefited consumer staples stocks [2][3] - Five consumer staples companies are recommended for investment: Estée Lauder, Hershey, Kimberly-Clark, Monster Beverage, and The New York Times, all holding a Zacks Rank 2 (Buy) [4][10] Estée Lauder Companies Inc. (EL) - Estée Lauder is focused on profitability recovery through its Profit Recovery and Growth Plan, aiming to restore margins and support sustainable sales growth [7] - The "Beauty Reimagined" strategy is enhancing innovation, global reach, and brand execution, with digital growth driven by social commerce and online distribution [8] - Expected revenue and earnings growth rates for the current year are 4% and 46.4%, respectively, with a current dividend yield of 1.41% [9][10] The Hershey Co. (HSY) - Hershey is enhancing innovation and supply-chain agility while expanding its presence in the snacking category, supported by strong pricing discipline [11][12] - The company is undergoing a multi-year transformation to modernize its supply chain and improve commercial capabilities [12] - Expected revenue and earnings growth rates for the current year are 4.1% and 13.3%, respectively, with a current dividend yield of 2.37% [13] Kimberly-Clark Corp. (KMB) - Kimberly-Clark is advancing its transformation through the Powering Care strategy, focusing on innovation and improving growth quality [14] - The company is experiencing stronger organic growth and volume trends, driven by better consumer engagement and consistent execution [15] - Expected revenue and earnings growth rates for the current year are -2.1% and -6.2%, respectively, with a current dividend yield of 4.83% [16] Monster Beverage Corp. (MNST) - Monster Beverage is benefiting from the expanding energy drinks market and product innovations, reinforcing its market position [17] - The company continues to invest in new product launches and has a solid innovation pipeline planned for 2026 [18] - Expected revenue and earnings growth rates for the current year are 9.5% and 22.8%, respectively, with a Zacks Consensus Estimate for earnings improving by 0.5% over the last 60 days [19] The New York Times Co. (NYT) - The New York Times is leveraging a multi-platform strategy to drive digital growth and diversify revenue streams, particularly in lifestyle categories [20] - Strong execution in digital subscriptions and average revenue per user (ARPU) improvement reflects effective monetization of its content [21] - Expected revenue and earnings growth rates for the current year are 7.9% and 11.8%, respectively, with a current dividend yield of 1.06% [22]

Core Insights - Kimberly-Clark Corp. is undergoing the largest transformation in its 150-year history while maintaining a dividend that has increased for 54 consecutive years [1] Company Overview - Kimberly-Clark Corp. has a long-standing history of 150 years [1] - The company has successfully increased its dividend for 54 consecutive years, indicating strong financial health and commitment to returning value to shareholders [1]

Core Viewpoint - Kenvue Inc. has been downgraded by Jefferies from Buy to Hold, with a reduced price target of $18, reflecting concerns over limited upside potential and litigation risks following the approval of its merger with Kimberly-Clark [1][7]. Group 1: Merger Approval - Shareholders of both Kimberly-Clark and Kenvue have overwhelmingly approved the merger, with approximately 96% of Kimberly-Clark shares and about 99% of Kenvue's voting shares in favor [2]. - The merger is expected to create a global leader in health and wellness by combining well-known brands such as Huggies, Kleenex, Tylenol, and Neutrogena, with the transaction anticipated to close in the second half of 2026, pending regulatory approvals [3]. Group 2: Company Overview - Kenvue Inc. operates as a consumer health company across various regions, including the US, Europe, the Middle East, Africa, Asia-Pacific, and Latin America, and is structured into three segments: Self Care, Skin Health and Beauty, and Essential Health [4].

Group 1: Chevron - Chevron offers a reliable dividend yield of 4% and has increased its dividend for 37 consecutive years, making it a strong candidate for passive income [4][6] - The company has outlined a plan to grow free cash flow (FCF) and earnings per share by at least 10% when Brent crude oil prices are at $70, with a breakeven point at $50 per barrel [5] - Chevron's solid balance sheet provides a cushion during downturns, allowing it to maintain its dividend even if oil prices fall below $50 [5] Group 2: Kimberly Clark - Kimberly Clark, known for brands like Kleenex and Huggies, is currently priced below $100 a share, which is a 12-year low, presenting a potential buying opportunity [9] - The company announced the acquisition of Kenvue, aiming for billions in annual cost synergies and expecting to grow earnings in the second year post-acquisition [9][10] - Kimberly Clark has a 5.2% dividend yield and a forward price-to-earnings ratio of 13.1, positioning it as a strong value stock for passive income [12]

Core Viewpoint - Kimberly-Clark Corporation is recognized as a strong investment opportunity, particularly in the context of dividend stocks, despite challenges related to its acquisition of Kenvue [1][5]. Financial Performance - On January 27, Kimberly-Clark reported quarterly profits that exceeded expectations, driven by effective cost controls and steady demand for essential products like Huggies and Kleenex across key markets including North America and China [3]. Strategic Decisions - The company has made significant operational adjustments in recent years, including workforce reductions and exiting lower-margin sectors such as private-label diapers and personal protective equipment, which have helped maintain profit margins [4]. - Management has also focused on expanding value-oriented product lines, introducing lower-priced options that retain features associated with premium brands, aiming to appeal to budget-conscious consumers [4]. Acquisition and Future Strategy - Kimberly-Clark is undergoing a strategic transformation to position itself as a global consumer health business, highlighted by its $40 billion acquisition of Kenvue, which is expected to close by year-end and is a crucial element of the company's long-term strategy [5]. Analyst Insights - UBS analyst Peter Grom raised the price target for Kimberly-Clark to $110 from $107 while maintaining a Neutral rating, indicating that while the core business remains stable, concerns related to Kenvue may persist [2].

Company Overview - Kimberly-Clark Corporation (NASDAQ:KMB) is one of the largest consumer goods companies in America [2] - The company's shares have decreased by 23% over the past year and by 1.4% year-to-date [2] Analyst Ratings - Bank of America has reduced the firm's share price target to $130 from $148 while maintaining a Buy rating, citing value compression in the sector and that the firm's transformation plan is on track [2] - Citi has lowered its share price target to $90 from $95 and has a Sell rating on the stock [2] Recent Developments - Kimberly-Clark Corporation's shareholders approved the acquisition of Kenvue, with 96% voting in favor [2] - The company raised its quarterly dividend to $1.28 from $1.26, marking the 54th consecutive increase [2] - The dividend increase followed the firm's fourth quarter earnings, which reported a 24% annual growth in adjusted earnings [2] Market Commentary - Jim Cramer highlighted Kimberly-Clark Corporation's dividend as part of a safe dividend portfolio [2]

Core Viewpoint - Consumer staples stocks, particularly those that are currently undervalued, present a significant buying opportunity for value investors, especially in light of their underperformance compared to the broader market [1][2]. Group 1: Procter & Gamble (P&G) - P&G experienced a challenging 2025, with a stock value decline of 14.5%, reaching a near three-year low [4]. - The company reported a 1% decline in sales volume and flat organic sales growth, leading to a 5% drop in diluted net earnings per share (EPS) [5]. - P&G has adjusted its fiscal 2026 diluted net EPS growth forecast to a range of 1% to 6%, down from a previous estimate of 3% to 9% [5]. - The company is under new leadership and aims to enhance its value proposition by focusing on volume growth rather than price increases [8]. - P&G boasts a strong dividend yield of 2.9% and has increased its dividend for 69 consecutive years, making it an attractive option for income investors [9][11]. Group 2: Kimberly-Clark - Kimberly-Clark reported a modest 3.2% growth in adjusted EPS and flat adjusted operating profit, with a 1.7% increase in organic sales [12]. - The company is in a downturn but plans to acquire Kenvue to diversify its product offerings, which is expected to enhance its market position [13]. - Kimberly-Clark anticipates achieving $2.1 billion in annual cost synergies from the acquisition within three years [15]. - The company has a dividend yield of 5% and has increased its dividend for 54 consecutive years, making it appealing for value investors [17][19]. Group 3: Comparative Analysis - P&G is considered a higher quality company with a strong brand portfolio and better diversification, while Kimberly-Clark offers a cheaper valuation and higher yield, making it a potential turnaround play [20]. - Both companies are currently facing growth challenges due to a slowdown in consumer spending but continue to generate substantial free cash flow and earnings to support their dividends [20]. - A balanced investment strategy could involve a 50/50 split between both stocks, yielding an average of 4% [21].

Core Viewpoint - Kimberly-Clark is positioned as a deep value stock for income investors in 2026, especially with its strong dividend yield of 5% and a history of consistent dividend increases [3][9][19] Company Overview - Kimberly-Clark specializes in paper products, including brands like Kleenex, Huggies, and Scott, holding leading market shares in 70 countries [4] - Approximately two-thirds of its sales are generated in North America, with the remainder coming from international markets [4] Financial Performance - In 2025, Kimberly-Clark achieved 1.7% organic sales growth, driven by a 2.5% increase in volume, despite a 0.9% decrease in price [6] - The company reported gross margins of 36%, flat adjusted operating profit, and a 3.2% increase in adjusted earnings per share (EPS) [6] - For 2026, Kimberly-Clark is guiding for 2% organic sales growth and flat adjusted EPS, with a mid-to-high single-digit increase in adjusted operating profit [6] Dividend and Cash Flow - Kimberly-Clark raised its dividend for the 54th consecutive year, indicating a commitment to returning value to shareholders [3][10] - The company's earnings and free cash flow exceed its dividend expense, suggesting that the dividend is sustainable without relying on debt [10] Acquisition Strategy - The acquisition of Kenvue, a consumer health company, is expected to generate $2.1 billion in annual synergies, primarily from cost reductions [12][15] - This acquisition aligns with Kimberly-Clark's strategy to expand its product offerings and cover a broader range of consumer needs [13][15] Market Position and Valuation - Kimberly-Clark's stock is currently trading at 13 times forward earnings, making it an attractive option for value investors [18] - The stock has experienced a sell-off, leading to a higher dividend yield, which is appealing for income-focused investors [9][19]

Group 1 - Kimberly-Clark Corporation (NASDAQ:KMB) is recognized as one of the 14 High Yield Dividend Stocks with Sustainable Payouts [1] - BofA analyst Anna Lizzul has reduced the price target for Kimberly-Clark from $148 to $130 while maintaining a Buy rating, citing a lower P/E multiple applied to the company's 2027 EPS estimate due to sector-wide valuation compression [2] - The company reported quarterly profits exceeding expectations, supported by effective cost controls and steady demand for core products like Huggies diapers and Kleenex tissues across major markets [3] Group 2 - In recent years, Kimberly-Clark has implemented job cuts and exited lower-margin businesses, which has helped protect profit margins while expanding affordable product ranges to attract cost-conscious consumers [4] - The company is transforming into a global consumer health entity following its $40 billion acquisition of Kenvue, the maker of Tylenol, which is expected to close by year-end [5] - In the fourth quarter, Kimberly-Clark experienced a 1.1% decline in prices, while organic sales increased by 2.1%, driven by a 2.7% rise in overall volumes of essential products [6]