We're buying more of this defensive stock ahead of an upcoming long-term catalyst
The stock has been on a tough road since our initiation at the beginning of the month.
TL;DR
- Jim Cramer's Charitable Trust is buying 100 shares of Kimberly-Clark (KMB) at around $98 per share.
- This purchase increases KMB's weighting in the trust's portfolio to 1.15%.
- Kimberly-Clark recently issued a profit warning, citing lower-than-expected Q3 sales and EPS.
- Reasons for the warning include poor product innovation execution, distributor inventory destocking, depressed Huggies sales in China, and higher freight/tariff costs.
- The trust is optimistic about the upcoming acquisition of Kenvue, expecting it to boost growth and synergy planning is ahead of schedule.
- The potential upside from the Kenvue deal is why the trust is buying more KMB shares.
- Subscribers to the CNBC Investing Club receive trade alerts before trades are made, with specific waiting periods after alerts or TV mentions.