We recently published 10 Trending Stocks This Week. Kimberly-Clark Corp (NASDAQ:KMB) is one of the trending stocks this week.
Jenny Harrington, CEO at Gilman Hill Asset Management, said in a recent program on CNBC that she likes Kimberly-Clark amid the company’s dividend yield and strong business. She believes the stock could be a good buy for investors who are looking for stocks outside of the AI trade, where she sees “froth.”
“The most consumer staple of all consumer staples names. It’s trading at 16 and a half times earnings, with a 4.2% yield. They really got rid of their international family care and professional business, and I think analysts haven’t fully accounted for that. So JP Morgan put out a report about a month and change ago where they said like, look, once we really figure out what the new numbers will look like once that business is off the books, there’s some decent earnings growth ahead. And decent earnings growth for Kimberly means like 3 to 6%, not 15 or 20%. But they’ve got a price target of $144 on it. Stock’s at about $122 right now. And I think in this environment, if there is wind that comes out of the overall market sails, if there is wind that comes out of the AI froth-driven area, this is where I want to be. A 4.2% yield, 16 and a half times earnings, steady earnings growth ahead, maybe some upside as analyst earnings revisions are revised up. Maybe there could be a little bit of multiple expansion. If the market does crack up a bit, this would be an obvious flight-to-safety recipient.”
While we acknowledge the potential of KMB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
