Kimberly-Clark (KMB): Reassessing Valuation After Recent Share Price Slide and Stronger Growth Outlook

Kimberly-Clark (KMB) has been sliding lately, with the stock down about 4% over the past month and almost 19% in the past 3 months, even as earnings and revenue continue to grow. See our latest analysis for Kimberly-Clark. That slide comes after a tougher stretch for Kimberly-Clark, with the share price returning about negative 23 percent year to date and total shareholder return down roughly 20 percent over the past year. This suggests momentum has clearly faded despite improving fundamentals. If this kind of defensive consumer staples name has you rethinking your portfolio mix, it could be a good moment to explore fast growing stocks with high insider ownership for more dynamic ideas. With earnings climbing, a hefty discount to analyst targets, and a richer dividend yield after the selloff, investors now face a key question: Is Kimberly-Clark quietly undervalued, or is the market already pricing in its steady growth? Most Popular Narrative: 21.2% Undervalued With Kimberly-Clark last closing at $100.65 against a narrative fair value near $128, the gap in expectations is already striking and calls for a closer look. Fair value estimate edged down slightly from about $128.87 to $127.73 per share, reflecting a modestly more conservative valuation. Revenue growth increased meaningfully from roughly 7.0% to about 10.4%, signaling a more optimistic long term top line outlook. Read the complete narrative. Want to know how modest multiple assumptions can still point to meaningful upside, even as growth and margins are upgraded in tandem? The narrative quietly blends stronger revenue, higher profitability, and a surprisingly restrained future earnings multiple into one coherent pricing case. Curious which levers do most of the heavy lifting in that fair value math, and how sensitive the outcome is to them? Dive in to see how a few carefully chosen assumptions reshape Kimberly-Clark's potential. Result: Fair Value of $127.73 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, sustained pricing pressure from private labels, along with any stumble in executing the Kenvue integration, could quickly erode the market’s current upside case. Find out about the key risks to this Kimberly-Clark narrative. Build Your Own Kimberly-Clark Narrative If you see the story differently or prefer to dig into the numbers yourself, you can shape a custom view in just a few minutes. Do it your way. A great starting point for your Kimberly-Clark research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Ready for more investing ideas? Before markets move on without you, put your research edge to work with fresh opportunities surfaced by the Simply Wall St Screener. Capture powerful cash flow bargains by scanning these 913 undervalued stocks based on cash flows aligned with solid fundamentals and attractive long term potential. Position yourself ahead of the next tech wave by targeting these 24 AI penny stocks at the intersection of artificial intelligence and scalable business models. Lock in potential income streams by reviewing these 12 dividend stocks with yields > 3% that combine resilient balance sheets with compelling yield profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech