Kenvue Inc. (KVUE) Stock Analysis

Kenvue’s principal competitive advantage lies in its portfolio of iconic, science-backed brands—Tylenol, Neutrogena, Listerine, BAND-AID, and Johnson’s—each typically ranked #1 or #2 in their categories. This brand equity translates into high consumer trust and habitual purchasing, which is less vulnerable to private label encroachment than most consumer staples; for example, private label penetration in Kenvue’s core categories has remained flat or declined in the U.S., even as it has risen in other staples sectors.

The company’s products are frequently recommended by healthcare professionals, reinforcing consumer loyalty and supporting premium pricing. Kenvue’s innovation engine is robust: management expects to launch 40% more new products in 2025 versus 2024, with a focus on premiumization and adjacent categories. This is underpinned by a global R&D team of 1,600 and a supply chain that delivers over 60% of volume in-house, supporting quality and margin control.

Relative to peers such as Haleon, Procter & Gamble, and Reckitt, Kenvue’s scale in consumer health is unmatched, with $15.5 billion in 2024 revenue and a presence in over 165 countries. The company’s digital-first marketing and AI-enabled analytics are driving improved consumer engagement and operational agility.

Risks include litigation (notably Tylenol/acetaminophen), exposure to regulatory changes, and underperformance in certain beauty brands. However, Kenvue’s diversified portfolio, entrenched distribution, and disciplined capital allocation provide resilience against these threats.