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Clorox (CLX) Gains As Market Dips: What You Should Know

Zacks Equity Research
·3 mins read

Clorox (CLX) closed at $208.53 in the latest trading session, marking a +0.18% move from the prior day. This change outpaced the S&P 500's 1.16% loss on the day. Elsewhere, the Dow lost 1.84%, while the tech-heavy Nasdaq lost 0.13%.

Prior to today's trading, shares of the consumer products maker had lost 8.83% over the past month. This has lagged the Consumer Staples sector's loss of 1.09% and the S&P 500's loss of 1.96% in that time.

Investors will be hoping for strength from CLX as it approaches its next earnings release. On that day, CLX is projected to report earnings of $2.39 per share, which would represent year-over-year growth of 50.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.74 billion, up 15.8% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.75 per share and revenue of $6.94 billion, which would represent changes of +5.3% and +3.3%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CLX. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 remained stagnant within the past month. CLX currently has a Zacks Rank of #3 (Hold).

Digging into valuation, CLX currently has a Forward P/E ratio of 26.85. For comparison, its industry has an average Forward P/E of 24.59, which means CLX is trading at a premium to the group.

Meanwhile, CLX's PEG ratio is currently 3.82. 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. The Soap and Cleaning Materials was holding an average PEG ratio of 3.72 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 53, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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