Core Insights - PepsiCo has made significant acquisitions, including full ownership of Sabra, Obela, Siete Foods, and Poppi, marking a major diversification effort in its portfolio [1] - The company is undergoing a portfolio transformation and cost reduction strategy to enhance operations and respond to the growing demand for wellness and healthy snacks [2] - The consumer staples sector, including PepsiCo, has faced challenges due to rising living costs, inflation, and a weakening job market, leading to decreased foot traffic and demand for snacks and beverages [3][4] Company-Specific Summaries - **PepsiCo**: The company is focusing on diversifying its product offerings through acquisitions that do not overlap with its existing brands, aiming to adapt to changing consumer preferences [2][7] - **Procter & Gamble (P&G)**: P&G is demonstrating strong pricing power and modest earnings growth, with international markets helping to offset weaknesses in North America [8] - **Colgate-Palmolive**: Colgate is primarily focused on oral and home care products, maintaining a strong position in the toothpaste market, and has a high-margin pet nutrition segment [9][10][11] - **Kimberly-Clark**: The company is facing challenges following its acquisition of Kenvue, but it maintains strong brands in the diaper and tissue markets, which are resilient during economic downturns [12][14][15] - **Target**: Target is struggling to compete on price but is improving its in-store experience and e-commerce capabilities, still generating sufficient cash flow to support its dividend [16] Market Performance and Valuation - The consumer staples sector, including Dividend Kings like PepsiCo, P&G, and Colgate, has seen a decline in stock performance, with many companies trading at attractive valuations based on forward earnings projections [17][18] - Kimberly-Clark is noted for trading at a significant discount to its historical average, although this may change post-acquisition of Kenvue [18] - The current market conditions present a compelling opportunity for long-term investors to consider these Dividend Kings, particularly those with strong cash flow and dividend reliability [19]

Core Insights - Kimberly-Clark Corporation (KMB) has a market capitalization of $34.2 billion and is a leader in personal care and tissue products, with brands like Huggies, Kotex, Kleenex, Scott, and Depend [1] Stock Performance - KMB shares have underperformed the broader market, decreasing 22.7% over the past 52 weeks, while the S&P 500 Index gained 14.1% [2] - Year-to-date, KMB shares are down 21.4%, compared to a 16.4% rise in the S&P 500 [2] - The company's stock has also lagged behind the Consumer Staples Select Sector SPDR Fund, which saw a 3.9% dip over the same period [3] Recent Financial Performance - On October 30, KMB reported Q3 2025 net sales of $4.15 billion and adjusted EPS of $1.82, exceeding expectations [4] - Overall volumes grew by 2.4%, and organic sales in North America rose by 2.7%, indicating resilient demand for household staples despite pricing pressures [4] - Investor sentiment improved due to confidence in KMB's cost-control and product-mix strategies, which helped mitigate tariff-related margin declines [4] Earnings Outlook - For the fiscal year ending December 2025, analysts expect KMB's adjusted EPS to decline by 15.5% year-over-year to $6.17 [5] - KMB has a positive earnings surprise history, having beaten or met consensus estimates in the last four quarters [5] - Among 18 analysts covering the stock, the consensus rating is a "Hold," with three "Strong Buy," one "Moderate Buy," 13 "Holds," and one "Strong Sell" [5] Analyst Ratings and Price Targets - Morgan Stanley recently cut its price target on KMB to $125 while maintaining an "Equal Weight" rating [6] - The mean price target of $126.75 suggests a 23% premium to KMB's current price levels [6] - The highest price target of $162 indicates a potential upside of 57.2% [6]

Core Insights - Gilman Hill Asset Management, LLC disclosed a new stake in Kimberly-Clark Corporation with an estimated trade value of $9.92 million as of October 15, 2025 [2][4] - The new position represents 1.55% of Gilman Hill's reported U.S. equity assets as of September 30, 2025 [2][3] - Kimberly-Clark's stock price was $120.17 as of October 14, 2025, reflecting a 16.28% decline for the year, underperforming the S&P 500 by 26.6 percentage points [4] Company Overview - Kimberly-Clark operates in the consumer defensive sector, specializing in essential personal care and tissue products, with a portfolio of well-established brands [6] - The company generates revenue primarily through direct sales to retailers, distributors, and e-commerce channels, with a diversified global presence [7] - Key brands include Huggies, Kleenex, Scott, and Kotex, which are essential household products [6][8] Financial Metrics - As of October 14, 2025, Kimberly-Clark's market capitalization is $39.87 billion, with a trailing twelve months (TTM) revenue of $18.88 billion and net income of $2.43 billion [5] Investment Perspective - Investors are increasingly focusing on companies with steady cash flow, and Kimberly-Clark exemplifies this trend due to its everyday relevance and stable revenue [8][9] - The company has faced challenges from higher input costs and shifting consumer behavior, yet it maintains a strong record of dividend growth, currently yielding nearly 4% [9] - Kimberly-Clark's products are considered essential, suggesting resilience through economic cycles [10]

Core Viewpoint - Sarasin & Partners LLP has significantly increased its stake in Kimberly-Clark by acquiring 963,978 shares valued at approximately $119.87 million, raising its total holdings to 2,048,544 shares worth $251.27 million as of September 30, 2025 [1][2]. Company Overview - Kimberly-Clark reported a total revenue of $18.88 billion and a net income of $2.43 billion for the trailing twelve months (TTM) [4]. - The company offers a dividend yield of 4.22% as of October 9, 2025, with its stock priced at $119.55 [4]. Business Model - Kimberly-Clark manufactures and markets personal care products, consumer tissue, and professional hygiene solutions under well-known brands such as Huggies, Kleenex, Scott, and Kotex [5]. - The company generates revenue primarily through the sale of branded disposable consumer products, utilizing a global distribution network that includes supermarkets, mass merchandisers, and e-commerce channels [5]. Market Position - Kimberly-Clark is recognized as a leading global provider of personal care and tissue products, serving a diverse customer base that includes individual consumers, retail outlets, and commercial institutions across various sectors [6]. - The company has maintained a diversified portfolio of established brands, which supports its market presence [6]. Investment Insights - Despite a decline in stock price, down 15.9% over the year ending October 9, 2025, Kimberly-Clark's dividend history is notable, having increased dividends for over 50 years, making it a reliable choice for income-focused investors [3][9]. - The KMB position now constitutes 2.47% of Sarasin & Partners LLP's 13F reportable assets under management (AUM) as of September 30, 2025 [3].

Core Insights - Kimberly-Clark Corporation is a multinational company specializing in hygiene and personal care products, with a market capitalization of $39.99 billion and operations in over 175 countries [1] Financial Performance - The company is expected to report a 10.9% year-over-year decline in profit to $1.63 per diluted share for Q3 fiscal 2025 [2] - For the fiscal year 2025, analysts predict an 11% decrease in profit to $6.50 per diluted share compared to the previous year [3] Stock Performance - Kimberly-Clark's stock has underperformed the broader market, losing 13.1% over the past 52 weeks and 6.7% year-to-date, while the S&P 500 Index has gained 17.9% and 14.2% respectively [4] - The company has also underperformed the Consumer Staples Select Sector SPDR Fund (XLP), which has dropped 3.1% over the past 52 weeks [5] Recent Results - In Q2, Kimberly-Clark reported net sales of $4.16 billion, a 1.6% year-over-year decrease, impacted by a 4.4% adverse effect from divestitures and business exits [6] - The adjusted EPS for Q2 was $1.92, down 2% year-over-year but exceeding analyst expectations of $1.68, leading to a 4.8% intraday stock rise on the reporting day [6]

Let's go outside of tech before we uh get out of this A block. Uh look at the home builders today. DR KB py toll.Uh Evercor has downgraded that group. Um they believe margins must bottom before the stocks can rerate. We do not believe that this will materialize in the next several months.Take a look at that move in DHI down 5%. You can cycle through the others. I'm sure that must tell a similar story, right.KB PY toll. Can we look at those guys. Um, I I bring this up in part because Jenny has made a move in ...

Core Viewpoint - Kimberly-Clark is set to release its third quarter 2025 results on October 30, with a live Q&A session for analysts scheduled shortly after the release [1][2]. Company Overview - Kimberly-Clark operates in over 175 countries and territories, offering trusted brands such as Huggies, Kleenex, and Scott, which hold leading market positions in approximately 70 countries [3]. - The company's mission is to provide Better Care for a Better World, emphasizing sustainable practices to support environmental health and community strength [3].

Core Viewpoint - Kimberly-Clark Corporation (NYSE:KMB) is experiencing a reduction in sales projections due to pantry loading and marketing delays, but maintains a strong position in the market with a low beta stock that can outperform during market volatility [1][2]. Group 1: Sales and Earnings Projections - Evercore ISI has lowered its third-quarter sales projections for Kimberly-Clark to about 1%, which is two percentage points below consensus predictions [1]. - Despite the lower sales expectations, Evercore ISI has maintained its earnings per share estimates, attributing this to pulp deflation and cost reductions [2]. Group 2: Company Overview - Kimberly-Clark Corporation is a major American manufacturer specializing in personal care and hygiene products, operating through three primary business segments: Personal Care, Consumer Tissue, and K-C Professional [3]. - The company markets its products under well-known brand names such as Kleenex, Scott, Cottonelle, DryNites, and Huggies [3]. Group 3: Investment Considerations - The current stock price of Kimberly-Clark is viewed as a viable entry point, especially during regression-to-the-mean trading periods [2].

Group 1 - Suzano S.A. is the world's largest producer of eucalyptus pulp, controlling 49% of the company and producing approximately 17% of global market pulp supply through over eight mills in Brazil [2][3] - The company generated around $3 billion in operating cash flow last year, with a market capitalization of $12 billion, resulting in a price-to-operating cash flow ratio of 3.2x [3] - Suzano benefits from a structural cost advantage due to the fast maturation of eucalyptus trees, which mature in about seven years compared to nearly 20 years for pine, leading to a low unit cash cost of approximately $150 per ton [3] Group 2 - The company is expanding its footprint through a $3.4 billion joint venture with Kimberly-Clark, which will give Suzano a controlling stake in 22 tissue mills across over 70 countries [4] - Additional growth drivers include acquisitions of U.S. paperboard mills and strong shareholder returns through buybacks and dividends [5] - While Suzano is seen as a cheap, cash-rich business with long-term competitive advantages, the optimal entry point for investors depends on a recovery in pulp prices [5]

Group 1 - Kimberly-Clark Corporation will have its Chairman and CEO Mike Hsu, along with CFO Nelson Urdaneta, speaking at the Piper Sandler Growth Frontiers Conference on September 10, 2025, at 9:30 a.m. CT [1] - The conference broadcast will be accessible through the Investors section of Kimberly-Clark's website [1] Group 2 - Kimberly-Clark operates in over 175 countries and territories, with a portfolio of trusted brands including Huggies, Kleenex, Scott, and Kotex [2] - The company holds No. 1 or No. 2 market share positions in approximately 70 countries [2] - Kimberly-Clark is committed to sustainable practices aimed at supporting a healthy planet and building strong communities [2]