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Clorox (CLX) Gains But Lags Market: What You Should Know

Zacks Equity Research

Clorox (CLX) closed the most recent trading day at $205.12, moving +0.09% from the previous trading session. This change lagged the S&P 500's 1.31% gain on the day. Meanwhile, the Dow gained 1.9%, and the Nasdaq, a tech-heavy index, added 1.01%.

Wall Street will be looking for positivity from CLX as it approaches its next earnings report date. On that day, CLX is projected to report earnings of $1.98 per share, which would represent year-over-year growth of 5.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.85 billion, up 13.81% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.91 per share and revenue of $6.59 billion. These totals would mark changes of +9.34% and +6.09%, respectively, from last year.

Any recent changes to analyst estimates for CLX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. CLX is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, CLX is currently trading at a Forward P/E ratio of 29.66. This represents a premium compared to its industry's average Forward P/E of 23.34.

Investors should also note that CLX has a PEG ratio of 5.14 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Soap and Cleaning Materials was holding an average PEG ratio of 4.08 at yesterday's closing price.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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