Kenvue Inc: A Stock to Watch with Strong Growth Potential

Kenvue (NYSE:KVUE) posted second-quarter results that missed expectations across the board and revised its 2025 outlook lower.

The consumer health company reported adjusted EPS of $0.29, below the $0.35 consensus. Revenue totaled $3.84 billion, missing expectations of $4.18 billion.

The disappointing results led Kenvue to lower its full-year adjusted EPS forecast to $1.00–$1.05, compared to the $1.13 analysts projected. The company had previously forecast EPS around $1.14.

Kenvue now expects net and organic sales to decline in the low single digits for 2025.

Organic sales for the second quarter dropped 4.2% year-over-year. The company attributed the decline to adverse pricing, lower volumes, weak seasonal performance in allergy and sun care categories in North America, inventory adjustments, and shipment timing shifts in China.

Kenvue (NYSE:KVUE) shares rose more than 5% intra-day today after the company delivered stronger-than-expected second-quarter results, but tempered its full-year outlook to reflect the impact of tariffs and currency pressures.

The consumer health company reported adjusted earnings per share of $0.24, edging past the $0.23 consensus estimate. Revenue totaled $3.74 billion, also ahead of the $3.68 billion forecast.

For fiscal 2025, the company now expects total net sales to grow 1% to 3% year-over-year. Organic sales growth is forecast between 2% and 4%, partially offset by a projected 1% drag from foreign exchange. Kenvue also warned that its adjusted operating income margin will decline from the prior year due to anticipated tariff costs.

Kenvue (NYSE:KVUE) shares rose more than 5% intra-day today after the company delivered stronger-than-expected second-quarter results, but tempered its full-year outlook to reflect the impact of tariffs and currency pressures.

The consumer health company reported adjusted earnings per share of $0.24, edging past the $0.23 consensus estimate. Revenue totaled $3.74 billion, also ahead of the $3.68 billion forecast.

For fiscal 2025, the company now expects total net sales to grow 1% to 3% year-over-year. Organic sales growth is forecast between 2% and 4%, partially offset by a projected 1% drag from foreign exchange. Kenvue also warned that its adjusted operating income margin will decline from the prior year due to anticipated tariff costs.

KVUE, listed on the stock exchange, has become a stock to watch due to its recent performance and growth potential. The company has shown a notable performance over the past month, making it an attractive option for investors. Despite a recent dip, KVUE's fundamentals remain strong, offering a promising investment opportunity.

Over the past 30 days, KVUE has achieved a gain of approximately 6.18%, indicating strong upward momentum. However, in the last 10 days, the stock experienced a decline of about 4.27%. This recent dip could present a buying opportunity for investors looking to capitalize on potential rebounds.

KVUE's growth potential is significant, with a stock price growth potential of 10.87%. This suggests that the stock has room to appreciate further, making it an attractive option for growth-oriented investors. The company's strong fundamentals support this potential for growth.

The Piotroski Score for KVUE is 8, indicating a financially healthy company. The Piotroski Score measures a company's financial strength, and a score of 8 reflects strong fundamentals. This score highlights KVUE's robust financial position and operational efficiency.

The target price for KVUE is set at $25.25, suggesting a potential upside from the current price. This aligns with the stock's growth potential and strong fundamentals, making it a promising investment opportunity. Investors should consider their risk tolerance and conduct their own research before making investment decisions.

Citigroup analysts initiated a 90-day positive catalyst watch on Kenvue (NYSE:KVUE), suggesting the stock might outperform in the near term.

The analysts' action comes in anticipation of a forthcoming judge's decision on the Tylenol case's Daubert hearings, expected by early 2024. Citi analysts, having attended the recent Daubert hearing, now believe there's an increased likelihood of the case being resolved favorably. While the outcome remains uncertain, they see greater upside potential, envisioning a share price range of $23-24, as opposed to a downside risk in the $18-19 range.

Despite this short-term optimism, Citigroup maintains a Neutral rating on KVUE shares. The analysts cite several challenging fundamentals affecting Kenvue, including a slowdown in Self Care, weaker performance in China, and a slower-than-expected recovery in the Skin Health & Beauty sector.

Citigroup analysts initiated a 90-day positive catalyst watch on Kenvue (NYSE:KVUE), suggesting the stock might outperform in the near term.

The analysts' action comes in anticipation of a forthcoming judge's decision on the Tylenol case's Daubert hearings, expected by early 2024. Citi analysts, having attended the recent Daubert hearing, now believe there's an increased likelihood of the case being resolved favorably. While the outcome remains uncertain, they see greater upside potential, envisioning a share price range of $23-24, as opposed to a downside risk in the $18-19 range.

Despite this short-term optimism, Citigroup maintains a Neutral rating on KVUE shares. The analysts cite several challenging fundamentals affecting Kenvue, including a slowdown in Self Care, weaker performance in China, and a slower-than-expected recovery in the Skin Health & Beauty sector.