Clorox (CLX) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Clorox (CLX) closed at $147.77, marking a -0.05% move from the previous day. This change lagged the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.04%.
Coming into today, shares of the consumer products maker had gained 5.04% in the past month. In that same time, the Consumer Staples sector gained 2.74%, while the S&P 500 gained 5.55%.
Clorox will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2022. The company is expected to report EPS of $0.97, up 2.11% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.87 billion, up 3.62% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Clorox. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.36% lower within the past month. Clorox is currently a Zacks Rank #3 (Hold).
Digging into valuation, Clorox currently has a Forward P/E ratio of 27.04. Its industry sports an average Forward P/E of 23.47, so we one might conclude that Clorox is trading at a premium comparatively.
Also, we should mention that CLX has a PEG ratio of 3.86. 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. Soap and Cleaning Materials stocks are, on average, holding a PEG ratio of 3.86 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 159, which puts it in the bottom 37% 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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