Will This Ratings Upgrade Help Kimberly Clark (KMB) Stock Today?

NEW YORK (TheStreet) -- Kimberly Clark Corp. (KMB) was upgraded to "neutral" from "sell" at Goldman Sachs (GS) on Tuesday.

The firm raised its rating on the company, which is engaged in the manufacturing and marketing of a variety of products made from natural or synthetic fibers, based on a valuation call.

Goldman maintained its $112 price target on the stock.

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Separately, TheStreet Ratings team rates KIMBERLY-CLARK CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate KIMBERLY-CLARK CORP (KMB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income, reasonable valuation levels, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Household Products industry average. The net income increased by 1.3% when compared to the same quarter one year prior, going from $531.00 million to $538.00 million.
  • KIMBERLY-CLARK CORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, KIMBERLY-CLARK CORP increased its bottom line by earning $5.54 versus $4.42 in the prior year. This year, the market expects an improvement in earnings ($6.11 versus $5.54).
  • 38.82% 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 10.19% trails the industry average.
  • You can view the full analysis from the report here: KMB Ratings Report
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