Kimberly-Clark Corporation (KMB) Stock Forecasts

Summary

Investment Themes for 2025 The long-term trend in the U.S. stock market has been higher. In the 40-plus years since Ronald Reagan became president in 1980, stocks have turned in profitable performances almost 80% of the time. The average annual gain has been 13%. The year 2024 was another winner, as stocks extended a bull market that began in October 2022. The rally was ignited by falling inflation and has been fueled by lower interest rates, consistent economic growth, and rising growth rates for corporate profits. But despite the positive historical trends, there’s no guarantee that 2025 will be a bell-ringer as well. The start of the year may be difficult, as the Federal Reserve wrestles with stubborn inflation, the employment environment potentially weakens from a historically strong position, and geopolitical issues simmer. But earnings growth is expected to accelerate to a low-double-digit rate year over year during the first half. And should inflation resume its downward trek, providing the central bank with more latitude to cut rates, the outlook for the second half should improve. We believe the stock market will take its cues from two sources in 2025. First is the Fed, which has been in the driver’s seat for this second leg of the bull market ever since it pivoted on its rate outlook. Second will be earnings growth, which is already solid but could get a boost in 2025 from President Trump’s new policies. It is at least modest comfort that the first year of the four-year presidential cycle historically has been good for equity returns. In all, our economic, earnings and valuation models support a forecast for a positive year for stocks. We expect to see earnings grow 12%, after a 9% increase in 2024; that interest rates will continue to trend lower as the Fed continues to ease; and that valuations will at least hold steady. Our target price for the S&P 500 is 6700, or about 10%-12% above current levels. In a certain-to-be-unpredictable investing environment, we present 10 key themes that we think will be important over the next 12 months. Some…

..

Read More

Recommended For You

Leave a Reply

Your email address will not be published. Required fields are marked *

Social Media Auto Publish Powered By : XYZScripts.com