In the latest trading session, Clorox (CLX) closed at $229.50, marking a +1.74% move from the previous day. This change outpaced the S&P 500's 0.56% loss on the day. At the same time, the Dow lost 1.39%, and the tech-heavy Nasdaq gained 0.53%.
Heading into today, shares of the consumer products maker had gained 8.81% over the past month, outpacing the Consumer Staples sector's loss of 4.1% and the S&P 500's loss of 1.79% in that time.
Wall Street will be looking for positivity from CLX as it approaches its next earnings report date. This is expected to be August 3, 2020. The company is expected to report EPS of $1.99, up 5.85% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.85 billion, up 13.81% from the year-ago period.
It is also important to note the recent changes to analyst estimates for CLX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.24% higher within the past month. CLX is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that CLX has a Forward P/E ratio of 31.13 right now. This valuation marks a premium compared to its industry's average Forward P/E of 24.16.
We can also see that CLX currently has a PEG ratio of 5.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Soap and Cleaning Materials stocks are, on average, holding a PEG ratio of 4.1 based on yesterday's closing prices.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% 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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The Clorox Company (CLX) : Free Stock Analysis Report
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