Top Stock Pick of the Week: KMB

Alphanso’s AI Stock Research picked KMB as one of the top stocks of the week.

Alphanso Rating: 9.9/10

KMB (Kimberly-Clark Corporation) beat Q2 profit estimates and boosted full-year guidance. Organic sales rose 5% during the quarter, driven by a 9% increase in price and favorable product mix from ongoing revenue growth management programs

Fundamental Metrics:

1. The company’s operating cash flow growth of 20.24%, shows strong business sustainability and efficiency.
2. The annual EBITDA margin of 17.3% vs sector median of 9.9% demonstrates the company’s pricing power, operations efficiency and scalability.
3. The company trades at Free Cash Flow (FCF) yield of 3.5% suggesting a relatively reasonable valuation and strong sustainability.
4. ROE of 277% is well above the sector median and shows management and business efficiency.

Technical Metrics:

Based on the Alphanso model, the stock is trading below the expected channel (range) of $164.4 – $173.8