Jim Cramer Recently Put These 18 Stocks Under a Microscope

13. Kimberly-Clark Corporation (NASDAQ:KMB)

Number of Hedge Fund Holders: 42

Kimberly-Clark Corporation (NASDAQ:KMB) is one of the stocks Jim Cramer recently put under a microscope. Cramer discussed the company’s planned acquisition, as he commented:

“Sometimes when stocks are doing badly, I get worried, not because I want to get out, but because I wonder if I might be missing a once-in-a-generational bottom. Those don’t come around all that often, of course. And right now, I’m concerned that we might be missing a bottom in a group of stocks that I haven’t particularly cared for at all, especially in a long time… The group that I’m talking about, the consumer packaged good stocks, too much inflation, not enough growth, growth being the magic elixir that makes your investment winners, and it doesn’t have it. When you take a stock like Kimberly-Clark or Procter & Gamble, you’re pretty much bracing yourself for the house of pain, and the pain doesn’t seem to end until the stocks fall to the point where their dividend yields become competitive with the bond market. Aha. Well, that means that we’re there. Why bother with these? Because I keep thinking about what my writing partner Matt Horween tells me, we may be looking at peak inflation, and these are undervalued winners of their categories. Peak inflation would drive their cost down, while their scale would normally prevent them from merging to dominate the industry. This administration doesn’t seem to care too much about antitrust enforcement. That’s what Kimberly-Clark Kenvue deal’s all about… You might want to consider Kimberly-Clark, too. It’s been knocked down to a level where it supports a 4.89% yield because it’s trying to buy Kenvue… Right now, the publicity’s making people skittish, but the science is on Kenvue’s side. Its brands complement Kimberly-Clark perfectly.”

Kimberly-Clark Corporation (NASDAQ:KMB) produces personal care, tissue, and hygiene products for consumer and professional use. During the November 4 episode, Cramer discussed the company’s earnings and commended its balance sheet, as he remarked:

“How about Kimberly-Clark? Sure, it got hit hard off the announcement of the Kenvue acquisition yesterday, but consider this. This, Kimberly just reported that it earned a $1.82 per share. Street was looking for $1.76. Now, the stock got a quick pop on that, gaining 3% Thursday, but that’s ancient memory as the stock’s now given up all that and more, of course because of the takeover.

But you know, I gotta tell you, it yields 5%, a terrific balance sheet. Doesn’t seem to matter. You gotta wonder, why these guys felt compelled to bid for Kenvue because nothing else is working. It just reported a very, very good quarter and the stock did next to nothing anyway. They have to think bigger if they hope to regain the love of growth investors.”