We're Putting Some of Our Large Cash Pile to Work in a Beaten-Down Consumer Name
We've been patient and waited for the stock to come down.
TL;DR
- Jim Cramer's Charitable Trust is buying 50 shares of Kimberly-Clark (KMB) at around $95.80.
- The purchase increases the trust's KMB weighting to 1.24%.
- The trust is taking advantage of a market opportunity to 'buy low' as many non-tech stocks have declined.
- A key catalyst is the expected completion of the nearly $50 billion Kenvue acquisition before year-end.
- The acquisition is expected to be accretive, combining brands like Huggies and Kleenex with Kenvue's Band-Aid, Tylenol, and Neutrogena.
- Kimberly-Clark's CEO Mike Hsu is expected to improve Kenvue's strategies and international presence.
- Despite current Treasury yields, Kimberly-Clark's 5.3% yield offers potential upside exposure.
- The stock is trading at 13 times forward earnings and has shown resilience around the $95 level.