Jim Cramer - Mad MoneyKimberly ClarkKMBBUYMar 27, 2024

Has benefited huge from the rally into consumer packaged goods. It reports Thursday. If shares fall before then, definitely buy.

Staples stocks are back. KMB was up 11% on October. It will be a powerhouse when it merges with Kenvue, totalling over $1 billion in annual sales. KMB trades at a cheap 15x PE and pays a 4.7% yield.

Drifted down 10% the past month without reason. Pays a 5% dividend. AI poses zero threat.

Great diversifier. Multiple's in low teens. Might get a few synergies from acquisition of KVUE. Classic steady Eddie. Dull and boring, but good to have in your portfolio. Decent dividend.

Is being punished by the market, down 5.10% this year. They're about to merge with Kenvue, a fantastic deal that will produce strong returns. But the market doesn't reward this.

Of consumer staples, the only ones that remain strong are the WMTs and COSTs of the world. 

Only 4% earnings growth going forward. He needs at least high single-digit earnings growth, preferably double-digit. Price and 200-day MA are sliding lower, as is the 200-week MA. Be cautious. Market seems nonchalant about the KVUE deal.

Important strategy shifts, with the first one being purchase of KVUE (continued litigation overhang). Divesting pulp business (always volatile). Significant transformation as it pivots from that to a high-margin, pure-play personal care giant. 

If you're willing to hold on and litigation and pulp issues get resolved, then clip your coupon and stock could work quite well. Attractive yield of 4.5%. 

The market has rotated into dividend stocks. Among her dividend picks is KMB, which pays 4.75%. Consumers will be using their products for many years. She is very bullish dividend stocks.

Consumer staples space in the US has really been all about COST. WMT, too, has done well.

With this name, price is below 200-day MA and 200-week MA (and falling). Starting to trend up a bit. Wait and see if it can overtake the 200-day. Staples are best owned when approaching, or in, a recession.

Iconic brands. Trading at 10-year low of 13x PE. Dividend stalwart with over 50 consecutive years of increasing dividends. About to change dramatically as it merges with KVUE (the old JNJ consumer products division). Huge synergies. Expects earnings growth to rise relatively quickly after the merger, which will boost stock price. Great yield of 4.88%.

It reports Tuesday and expects a better quarter than Procter's. Also, KMB is merging with Kenvue and that could keep the stock in its place. He is warming up to KMB.

Weakness from Kenvue which KMB has bought is hurting shares. but the CEO is good this pays a 5% yield and trades at only 13x.

They bought Kenvue today; shares plunged nearly 15%. KMB grew from a local company to a global giant (Europe, Latin America, Asia). Their stock was once a juggernaut, but after that expansion, they faced competition from Unilever and Procter & Gamble as well as local brands. Growth plunged to only a 2.5% organic growth rate. No wonder KMB bought Kenvue. The deal will make them the second-biggest consumer packaged goods company in the world. Is a terrific deal, giving KMB the growth it needs.

Likes the current restructuring. Pays a 4% dividend.

This could be the start of a major run in the stock, and their rebound is real. He'd buy before and after their report on Tuesday.