Inflation Hedge Stock 5/30

Hey Patreons, this is episode 5 out of 30 in our inflation friendly stocks.

As I mentioned, there are number of industries that tend to perform best during inflationary times. In this post I want to share with you a commodities stock which will be a great fit based on this strategy and should perform well during inflation.

The stock is $KMB Kimberly-Clark Corporation - Currently the price is $130.6 and I can see a price go to $145 per share by the end of Q1 2022. The average price target on TipRanks is $140 per share. During the past 9 months the share price dropped by 14% which makes it into a very interesting play to examine. 

Kimberly-Clark is a $44B company, with low short interest at 2.2%. The company is generating a steady $20B in revenue per year for the past 5 years, like clockwork.

The Net Income margin is 12% which is very good for commodities, and it's currently trading quite reasonably, given its attractive status as an inflation friendly company, with a P/E GAAP ratio of 20 and EV to Sales of 2.8. 

Let's face it, this company will not grow like crazy but it will always be there for you giving you sales of 20B per year. It's a well managed consumer products with a phenomenal product lineup. Adding the expected dividend yield of 3.5%, makes a very compeling case to get this company into your portfolio for the inflationary period ahead.  

DISCLAIMER: All of Tom's trades, strategies, and news coverage are based on his own opinions alone and are only done for entertainment purposes. If you are watching To'ms videos, please Don't take any of this content as guidance for buying or selling any type of investment or security.  Tom Nash is not a financial advisor and anything said on this YouTube channel should not be seen as financial advice. Tom is merely sharing his own personal opinion. Your own results in the stock market or with any type of investment may not be typical and may vary from person to person. Please keep in mind that there are a lot of risks associated with investing in the stock market so do your own research and due diligence before making any investment decisions.