Can Kimberly-Clark's Powering Care Strategy Sustain Growth Momentum?

Kimberly-Clark Corporation KMB highlighted the durability of the growth engine built through Powering Care. The company delivered its 10th consecutive quarter of solid volume and mix performance while maintaining global weighted share and achieving another quarter of industry-leading gross productivity. This performance came despite continued pressure on consumers and moderating category growth. The company also continued to invest for impact, while its teams maintained disciplined execution amid a challenging operating environment.

Kimberly-Clark continues to advance science-backed innovation and compelling value propositions through its proven, repeatable playbook. As the company moves into the next phase of its transformation, it is sharpening its focus on proprietary right-to-win spaces. The newly unveiled alternative natural fiber innovation program has the potential to reshape the future of the industry. The program represents the culmination of more than two decades of materials and plant science investment and development brought to life through Powering Care.

The program is expected to enhance product performance, strengthen the company’s long-term growth trajectory, reduce exposure to natural forest fiber cost volatility and advance its natural forest fiber-free ambition. The company also sees a strong pipeline ahead, with management expressing confidence in the company’s innovation pipeline over the next several years. This progress reflects greater organizational discipline and a faster, more agile approach that brings markets and functions together while placing greater focus on future pipeline development.

Overall, Kimberly-Clark’s Powering Care strategy continues to underpin a durable growth engine, supported by scientific innovation, differentiated product technologies and disciplined execution. Its focus on proprietary solutions and continued innovation could further strengthen its long-term growth trajectory.

The Zacks Rundown for KMB

Shares of this Zacks Rank #3 (Hold) company have gained 11.6% in the past three months compared with the industry’s growth of 3.6%.

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From a valuation standpoint, KMB trades at a forward price-to-earnings ratio of 14.44, lower than the industry’s average of 18.12.

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The Zacks Consensus Estimate for KMB’s current fiscal-year earnings implies a year-over-year decline of 1.3%, and the same for next fiscal year earnings implies growth of 1.7%.

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Stocks to Consider

Some better-ranked stocks have been discussed below:

WD-40 Company WDFC engages in the provision of maintenance products and homecare and cleaning products in North America, Central and South America, Asia, Australia, Europe, India, the Middle East, and Africa. At present, WDFC carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for WDFC’s current fiscal-year sales and earnings suggests growth of 9.9% and 7.2%, respectively, from the year-ago reported figures. WDFC reported a trailing four-quarter average earnings surprise of 18.3%.

BBB Foods Inc. TBBB provides spot products comprising food and non-food products, such as clothing, electronics, household goods, and others. At present, TBBB carries a Zacks Rank of 2.

The Zacks Consensus Estimate for TBBB’s current fiscal-year sales and earnings implies growth of 44.6% and 52.7%, respectively, from the year-ago reported figures. TBBB delivered a trailing four-quarter negative earnings surprise of 44%, on average.

Purple Innovation, Inc. PRPL designs, manufactures, and sells sleep and other products in the United States and internationally. PRPL currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for PRPL's current fiscal-year sales and earnings implies growth of 0.4% and 17.1%, respectively, from the year-ago actuals. PRPL delivered a trailing four-quarter earnings surprise of 21.3%, on average.

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

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