Summit, New Jersey-based Kenvue Inc. (KVUE) is a consumer health company that develops and markets a wide range of well-known personal care, health, and wellness products across categories such as skin health, self-care, and essential health. Valued at a market cap of $46 billion, the company’s portfolio includes brands like Tylenol, Listerine, Neutrogena, Aveeno, Band-Aid, and Zyrtec. 

This household and personal care products company has outpaced the broader market over the past 52 weeks. Shares of KVUE have surged 27.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.7%. Moreover, on a YTD basis, the stock is up 12.2% compared to SPX’s 4.7% loss. 

Zooming in further, KVUE’s outperformance becomes pronounced when compared to the Vanguard Consumer Staples Index Fund ETF’s (VDC) 9.7% rise over the past 52 weeks and 3.6% uptick on a YTD basis. 

On Feb. 6, shares of Kenvue plunged 4.5% after its Q4 earnings release. The company posted revenue of $3.7 billion, which marginally declined from the year-ago quarter and fell short of the forecasted figure by 2.9%. The shortfall was primarily driven by a decline in Essential Health segment sales, significantly lower revenue from the pediatric pain franchise, and weakness in the Asia-Pacific regions. On the earnings front, adjusted EPS came in at $0.26, down 16.1% year-over-year, but in line with Wall Street’s estimates. Weaker adjusted operating income across all reportable segments led to its bottom-line decline. 

For fiscal 2025, Kenvue expects net sales to change between -1% and +1%, and projects adjusted EPS growth to be up to 2%.

For fiscal 2025, ending in December, analysts expect KVUE’s EPS to remain flat year over year at $1.14. The company’s earnings surprise history is promising. It exceeded or met the consensus estimates in each of the last four quarters. 

Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on six “Strong Buy,” and 10 “Hold” ratings. 

The configuration has been fairly stable over the past three months. 

On Apr. 14, Citigroup Inc. (C) maintained a “Neutral” rating on KVUE and raised its price target to $22. 

The mean price target of $23.97 represents a minute upside from Kenvue’s current price levels, while the Street-high price target of $29 suggests an upside potential of 21%.