Kimberly-Clark Stock Trading Above 200 & 50-Day SMA: Should You Buy?

Core Viewpoint - Kimberly-Clark Corporation (KMB) is demonstrating strong stock performance and growth potential, making it a notable player in the consumer staples sector [1][11]. Stock Performance - KMB is trading at $142.54, above its 200-day SMA of $130 and 50-day SMA of $141.35, indicating a strong long-term bullish trend [1]. - The stock has increased by 17.3% year-to-date, outperforming the broader industry growth of 6.1% and the Zacks Consumer Staples sector growth of 11.5% [3]. Growth Strategy - Kimberly-Clark achieved positive volume-plus-mix growth for three consecutive quarters, reflecting the success of its volume-and-mix-driven growth model [3]. - The company is implementing a "Wire Our Organization for Growth" strategy to enhance operational efficiency and focus on more promising markets, including exiting less favorable businesses [4]. Financial Outlook - Kimberly-Clark anticipates organic net sales growth in the mid-single-digit percentage range for 2024, with adjusted operating profit projected to grow at a mid-to-high teens percentage rate [9]. - The Zacks Consensus Estimate for KMB's 2024 EPS indicates a year-over-year growth of 10.4%, reinforcing investor interest [10]. Cost Management and Innovation - In the first half of 2024, Kimberly-Clark generated approximately $250 million in gross supply-chain productivity, which is being reinvested to enhance supply-chain capabilities and product quality [6]. - The company is committed to optimizing its margin structure and managing input costs effectively to achieve neutral-to-positive Price Net of Cost (PNOC) inflation [5]. Future Investments - Kimberly-Clark plans to significantly increase investments in the latter half of the year, focusing on product innovations and building capabilities to sustain growth momentum [7]. - The company aims to strengthen its global market position and deliver long-term value to stakeholders through these investments [7].