Summit, New Jersey-based Kenvue Inc. (KVUE) is a consumer health company that develops, manufactures, and markets a broad portfolio of over-the-counter medicines, skincare products, oral care items, and self-care solutions. Valued at a market cap of $35.4 billion, the company’s portfolio includes well-known brands such as Tylenol, Listerine, Neutrogena, Aveeno, and Band-Aid, providing it with a strong presence in everyday healthcare and wellness.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and Kenvue fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the household & personal products industry. The company’s strength lies in its portfolio of iconic, trusted consumer health brands that enjoy strong brand loyalty and global recognition. Its specialty is in addressing everyday health and wellness needs, supported by decades of consumer trust and innovation.
Despite its notable strength, this consumer health company has dipped 26.6% from its 52-week high of $25.17, reached on May 8. Moreover, shares of Kenvue have declined 14.2% over the past three months, considerably underperforming the Dow Jones Industrial Average’s ($DOWI) 6.1% return during the same time frame.
In the longer term, KVUE has fallen 19.9% over the past 52 weeks, significantly lagging behind DOWI's 11.7% uptick over the same time period. Moreover, on a YTD basis, shares of Kenvue are down 13.5%, compared to DOWI’s 6.9% rise.
To confirm its bearish trend, KVUE has been trading below its 200-day and 50-day moving averages since early June, with slight fluctuations.
Shares of Kenvue surged 1.5% on Aug. 7, after its mixed Q2 earnings release. On the downside, due to a drop in organic sales, its overall revenue declined 4% year-over-year to $3.8 billion, falling short of consensus estimates by a small margin. Nonetheless, while its adjusted EPS also fell 9.4% from the year-ago quarter to $0.29, it topped the analyst expectations by a penny. This bottom-line beat raised investor confidence.
Kenvue has also underperformed its rival, The Procter & Gamble Company (PG), which declined 11.5% over the past 52 weeks and 6.1% on a YTD basis.
Despite Kenvue’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 16 analysts covering it, and the mean price target of $22.46 suggests a 21.6% premium to its current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
