Skillman, New Jersey-based Kenvue Inc. (KVUE) operates as a consumer health company worldwide. Valued at $43.5 billion by market cap, the company offers a consumer health portfolio in self-care, skin health & beauty, and essential health products.

Shares of this world’s largest pure-play consumer health company have underperformed the broader market considerably over the past year. KVUE has gained 20.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.2%. In 2024, KVUE’s stock rose 5.6%, compared to SPX’s 20.1% rise on a YTD basis. 

Narrowing the focus, KVUE’s outperformance is apparent compared to the Consumer Staples Select Sector SPDR Fund (XLP). The exchange-traded fund has gained about 18.2% over the past year. However, the ETF’s 11.3% gains on a YTD basis outshine the stock’s returns over the same time frame.

On Aug. 6, KVUE shares closed up more than 14% after reporting its Q2 results. Its adjusted EPS of $0.32 surpassed Wall Street expectations of $0.28. The company’s revenue was $4 billion, topping Wall Street forecasts of $3.9 billion. KVUE expects full-year adjusted EPS to be between $1.10 and $1.20.

For the current fiscal year, ending in December, analysts expect KVUE’s EPS to decline 16.3% to $1.08 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 15 analysts covering KVUE stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, eight “Holds”, and one “Strong Sell.”

This configuration is more bullish than two months ago, with five analysts suggesting a “Strong Buy,” and one giving a “Moderate Buy.”

On Oct. 24, Jefferies analyst Keith Devas initiated a “Buy” rating on KVUE with a price target of $27, implying a potential upside of 18.8% from current levels.

The mean price target of $23.92 represents a 5.2% premium to KVUE’s current price levels. The Street-high price target of $28 suggests an upside potential of 23.2%. 

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On the date of publication, Neha Panjwani 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.