Kimberly-Clark (KMB) Is Today's Unusual Social Activity Stock
Trade-Ideas LLC identified
(
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Kimberly-Clark as such a stock due to the following factors:
- KMB has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 2.42 mentions/day.
- KMB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $181.0 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on KMB:
Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care, consumer tissue, and professional products worldwide. The stock currently has a dividend yield of 2.8%. KMB has a PE ratio of 44. Currently there are 2 analysts that rate Kimberly-Clark a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Kimberly-Clark has been 1.7 million shares per day over the past 30 days. Kimberly-Clark has a market cap of $48.0 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.74 and a short float of 1.2% with 3.18 days to cover. Shares are up 5.8% year-to-date as of the close of trading on Friday.
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Analysis:
rates Kimberly-Clark as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, expanding profit margins, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Household Products industry and the overall market, KIMBERLY-CLARK CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 2665.00% to $553.00 million when compared to the same quarter last year. In addition, KIMBERLY-CLARK CORP has also vastly surpassed the industry average cash flow growth rate of -8.33%.
- 40.46% is the gross profit margin for KIMBERLY-CLARK CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.17% trails the industry average.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- KIMBERLY-CLARK CORP has improved earnings per share by 18.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, KIMBERLY-CLARK CORP reported lower earnings of $2.75 versus $3.89 in the prior year. This year, the market expects an improvement in earnings ($6.10 versus $2.75).
- You can view the full Kimberly-Clark Ratings Report.
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