Clorox (CLX) closed the most recent trading day at $228.55, moving -0.29% from the previous trading session. This change was narrower than the S&P 500's 0.65% loss on the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.27%.
Heading into today, shares of the consumer products maker had gained 5.35% over the past month, lagging the Consumer Staples sector's gain of 8.53% and the S&P 500's gain of 7.76% in that time.
CLX will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2020. The company is expected to report EPS of $2, up 6.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.85 billion, up 13.88% from the year-ago period.
Investors might also notice recent changes to analyst estimates for CLX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 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. The Zacks Consensus EPS estimate has moved 2.51% higher within the past month. CLX is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, CLX is holding a Forward P/E ratio of 30.93. Its industry sports an average Forward P/E of 24.9, so we one might conclude that CLX is trading at a premium comparatively.
Investors should also note that CLX has a PEG ratio of 5.25 right now. 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 4.18 based on yesterday's closing prices.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Clorox Company (CLX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research