Kimberly-Clark Corporation (KMB): Today's Featured Consumer Non-Durables Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Kimberly-Clark Corporation ( KMB) pushed the Consumer Non-Durables industry lower today making it today's featured Consumer Non-Durables laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Kimberly-Clark Corporation fell $1.72 (-2%) to $84.22 on average volume. Throughout the day, 3.2 million shares of Kimberly-Clark Corporation exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in price between $84.01-$86.88 after having opened the day at $86.81 as compared to the previous trading day's close of $85.94. Other companies within the Consumer Non-Durables industry that declined today were: Verso Paper ( VRS), down 11.5%, Buckeye Technologies ( BKI), down 7.6%, Female Health Company ( FHCO), down 6.3%, and STR Holdings ( STRI), down 6.3%.
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Kimberly-Clark Corporation, together with its subsidiaries, engages in manufacturing and marketing health care products worldwide. The company operates in four segments: Personal Care, Consumer Tissue, K-C Professional and Other, and Health Care. Kimberly-Clark Corporation has a market cap of $34.17 billion and is part of the consumer goods sector. The company has a P/E ratio of 19.1, equal to the average consumer non-durables industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 17.6% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Kimberly-Clark Corporation a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Kimberly-Clark Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer non-durables industry could consider Consumer Staples Select Sector SPDR ( XLP) while those bearish on the consumer non-durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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