During a lightning round on the Oct. 1 episode of “Mad Money,” Jim Cramer told viewers he was ready to buy more Kimberly Clark (KMB).
The Kimberly-Clark Company makes some of the common household products we use, such as facial tissue and Scott’s paper towels. However, the stock has underperformed recently.
KMB’s value has fallen about 20% Over the past year, investor uncertainty over the company’s pending acquisition deals has kenviere. That’s why Cramer’s call is noteworthy.
Kimberly-Clark’s acquisition of Kenvue (KVUE) is a blockbuster $48.7 billion consumer staples consolidation aimed at creating a $32 billion global health and wellness giant Ability to go head-to-head with industry leader Procter & Gamble.
Cramer has hosted “Mad Money” since 2005 and also runs the CNBC Investing Club with Jeff Marks, so many investors value his opinions.
But this time, his view is very different from that of many Wall Street analysts on KMB stock.
Cramer tells viewers Kimberly-Clark is a $90 buy
When a viewer called in to inquire about the stock, Cramer said, “One, I thought it was a buy, and two, when I talked to Jeff Marks about it, I felt like I started too early. It has become a bond play, but I will buy more because I think the combination with Kenvue is unstoppable.”
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His use of the word “unstoppable” shows that he has a certain degree of confidence in this stock. He even backed up the statement, saying, “I’m willing to take a chance and say that in a few years I won’t regret buying Kimberly-Clark for $90.”
Kimberly-Clark recently increased its quarterly dividend to $1.28 per sharewhich makes the return on the stock be About 5.4%.
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Why Kimberly-Clark shares keep falling near 52-week low
You can find Kimberly-Clark products in many grocery stores across the country. The company owns popular brands such as Huggies, Kleenex, Cottonelle, Scott and Kotex. These businesses typically deliver solid profits, but things are a little tough in 2026.
KMB closure time is $94.36 October 2, down about 7% Since then. In fact, the stock is pretty close to its 52-week low $92.42.
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The stock’s decline was mainly caused by six arson alarms at a large 1.2 million square foot distribution center in the United States and the company’s delay in launching new products and a profit warning in mid-September.
KMB’s current expected price-to-earnings ratio is about 13 to 14 times, which is the lowest valuation level in 10 years. Analysts at Simply Wall St wrote that the stock “still looks cheap despite being down 16%” compared to fair value.
Kenvue deal is the real reason Cramer is bullish
One of the main reasons Cramer remains bullish on KMB is its pending deal with Kenvue. Kenvue, formerly part of Johnson & Johnson’s consumer health division, makes Tylenol, Band-Aid, Neutrogena and Listerine.
KMB shareholders approved the deal earlier this year, with Kimberly-Clark reporting that 96% of shareholders supported the deal.
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Once the deal closes in the second half of 2026 under Chief Executive Mike Hsu, Kimberly-Clark will be able to add high-margin personal health products to its lineup.
Kramer believes the new deal could make KMB a serious competitor to Procter & Gamble, a top brand in household products.
What everyday investors should consider before buying KMB
Although Cramer sounds confident in KMB, there are still some risks with the stock.
On the one hand, investors still need to wait for the third-quarter earnings report on November 3 to know whether the warehouse fire problem will no longer affect the company. If not, the stock price could fall again.
Merger with Kenvue is another consideration. Large trades like this usually take a while to realize the expected profits. So if you buy today, you should be prepared to hold on to the stock for at least a full year before you expect any significant gains.
A high dividend yield alone is usually not enough of a reason to buy a stock, but KMB has something many of its peers don’t. The company has increased its dividend for 54 consecutive years, which qualifies it as Dividend King.
Additionally, some investors believe its 5.4% yield is worth waiting for the company to complete its Kenvue merger.
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