Over the past 25 years, I’ve made it my mission to speak up when something feels off in the markets.

A month before the dot-com bubble burst, I published a warning essentially saying: “This can’t last.”

In 2008, I rang the alarm on housing calling the fall of Bear Stearns and Lehman Brothers.

I’ve exposed shady CEOs, market frauds, and financial bubbles before most investors saw the cracks.

Eventually, CNBC gave me a nickname I didn’t ask for: “The Prophet.”

But what I see happening right now… it’s much bigger.

Some are even calling it, “The bubble to burst them all.”

And that’s why I’ve stepped forward in a way I never have before… to show you exactly what’s coming… and how to stay on the right side of it.

Because if I’m right again – and I’ve put together all my proof for you – this may be your final chance to prepare.

Click here to see the full details while there’s still time.

Regards,

Whitney Tilson
Editor, Stansberry’s Investment Advisory

Sticker Shock: Why Kimberly-Clark’s Sell-Off Is an Overreaction

Written by Jeffrey Neal Johnson. Published 11/5/2025.

On Nov. 3, Wall Street rendered a swift and brutal verdict on Kimberly-Clark’s (NASDAQ: KMB) transformative acquisition of Kenvue (NYSE: KVUE). While Kenvue’s shares climbed more than 12%, Kimberly-Clark’s stock plunged over 14% to a new 52-week low, wiping out roughly $5.8 billion in market value in a single session. That stark divergence underscored investor anxiety about the announced acquisition.

That immediate reaction raises a key question for investors: Is the market’s panic justified, or does the steep sell-off present a rare opportunity to buy into a stronger, more dominant company at a discount? A closer look at the strategy behind the deal suggests the market is fixating on short-term fears while overlooking a compelling long-term value story.

A Deliberate Pivot to Dominance

Kimberly-Clark’s decision to acquire Kenvue is the culmination of a multi-year effort to reshape its portfolio. For years the company has shifted away from slower-growth, lower-margin categories — a strategy reflected in the recent divestiture of a majority stake in its International Family Care and Professional businesses. This acquisition accelerates that transformation on a large scale.

The deal creates a consumer health and wellness powerhouse with an almost untouchable brand moat. The combined portfolio will feature iconic, billion-dollar brands — including Huggies, Tylenol, Kleenex, and Listerine — giving the company a dominant presence across many store aisles. The result is an approximately $32 billion revenue leader with the scale to drive supply-chain efficiency, product innovation, and pricing power within the retail sector. Crucially, it anchors Kimberly-Clark more firmly in the resilient and growing consumer health market, a segment that has historically been less vulnerable to economic downturns.

Why the Market’s Biggest Concerns Are Manageable

The market’s adverse reaction centered on two issues: the price paid and the risks that come with it. Both are legitimate, but they have been addressed with transparent, prudent plans from an experienced management team.

The nearly $49 billion price tag implies an approximately 46% premium for Kenvue — a point that heightened investor concern, especially after Kenvue’s recent revenue misses. That said, Kimberly-Clark has outlined a disciplined post-merger financial plan. Management is targeting a net leverage ratio of roughly 2.0x within 24 months, supported by free cash flow and proceeds from other divestitures. Those steps indicate a clear path to deleveraging.

The acquisition also brings Kenvue’s legal challenges — most notably litigation related to Tylenol — onto Kimberly-Clark’s balance sheet. While that adds uncertainty, it is a known and apparently well-vetted risk. Management has said extensive due diligence was completed, suggesting potential liabilities were assessed and incorporated into the purchase price. In short, this looks like a calculated risk rather than a blind leap.

Why the Sell-Off Is an Overreaction

Beyond the risks, the financial upside from the deal underpins the bullish case. For investors willing to look past the initial noise, the economics are compelling.

• A massive combined engine: The deal is expected to unlock about $2.1 billion in annual run-rate cost savings. Those efficiencies — from optimized supply chains to lower corporate overhead — directly boost profitability.
• Clear path to EPS growth: Management projects the transaction will be accretive to adjusted earnings per share (EPS) by the second year after closing.
• Compelling valuation: After the sell-off, Kimberly-Clark trades at a forward price-to-earnings ratio (P/E) near 14, a meaningful discount to its historical multiple and to many peers in the consumer staples sector.
• An enhanced dividend opportunity: The decline in share price has pushed the dividend yield to about 4.93%. As a Dividend King with 54 consecutive years of dividend increases, Kimberly-Clark now offers income-focused investors an attractive yield on a blue-chip name undergoing a major strategic upgrade.

A Compelling Entry Point for the Long Term

The market’s reaction was driven by legitimate, but largely short-term, concerns. The acquisition’s strategic logic is built for long-term value creation. By adding Kenvue, Kimberly-Clark becomes a more dominant, more diversified company with an unparalleled portfolio of essential consumer health and household brands.

For investors with a multi-year horizon, the combination of a clear strategic vision, material financial benefits, an attractive valuation, and an enhanced dividend yield makes today’s depressed share price a noteworthy opportunity to buy into a stronger, more dynamic Kimberly-Clark at a significant discount.