Trade-Ideas LLC identified

Kimberly-Clark

(

KMB

) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Kimberly-Clark as such a stock due to the following factors:

  • KMB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $346.0 million.
  • KMB has a PE ratio of 22.
  • KMB is currently in the upper 30% of its 1-year range.
  • KMB is in the upper 25% of its 20-day range.
  • KMB is in the upper 35% of its 5-day range.
  • KMB is currently trading above yesterday's high.
  • KMB has experienced a gap between today's open and yesterday's close of 0.6%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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More details on KMB:

Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care, consumer tissue, and K-C professional products worldwide. It operates through three segments: Personal Care, Consumer Tissue, and K-C Professional. The stock currently has a dividend yield of 2.8%. KMB has a PE ratio of 22. Currently there are 4 analysts that rate Kimberly-Clark a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Kimberly-Clark has been 1.9 million shares per day over the past 30 days. Kimberly-Clark has a market cap of $45.1 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.85 and a short float of 1.4% with 2.01 days to cover. Shares are down 0.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Kimberly-Clark as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that revenues have generally been declining.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Products industry. The net income increased by 501.2% when compared to the same quarter one year prior, rising from -$83.00 million to $333.00 million.
  • Net operating cash flow has increased to $665.00 million or 12.71% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -9.87%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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, implying reduced upside potential.
  • KIMBERLY-CLARK CORP reported significant earnings per share improvement 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 ($6.14 versus $2.75).
  • Despite the weak revenue results, KMB has outperformed against the industry average of 17.4%. Since the same quarter one year prior, revenues slightly dropped by 6.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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