In this weekends Barron's the magazine cites Kimberly Clark Corp. (KMB) the maker of bathroom tissue and baby diapers as Ready to Clean Up. It cites the stock as cheap according to Chuck Bath, a portfolio manager at Diamond Hill Capital Management in Columbus, Ohio. Bath cites KMB's forward earnings multiple as cheap as it gets and goes on to say it is significantly cheaper than other consumer-products companies like Procter & Gamble (PG), which fetches a multiple of 19 times 2008 estimates.
However with soaring commodities costs, particularly for pulp and oil, KMB shares remain under pressure. With a its low FusionIQ score (34) we are not saying Barron's is wrong but we would suggest its score is low for a reason. So regardless of the so called bullish factors lining up the KMB's low score suggests no one in the institutional community believes the shares are ripe for a turnaround just yet.