Clorox (CLX) Stock Slides as Market Rises: Facts to Know Before You Trade
Clorox (CLX) ended the recent trading session at $141.29, demonstrating a -0.81% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.18%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.1%.
Heading into today, shares of the consumer products maker had lost 0.84% over the past month, lagging the Consumer Staples sector's gain of 1.42% and the S&P 500's gain of 2.75% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Clorox in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.07, marking a 9.18% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.78 billion, indicating a 3.57% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $4.59 per share and a revenue of $7 billion, demonstrating changes of -9.82% and -5.29%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Clorox. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.54% rise in the Zacks Consensus EPS estimate. Right now, Clorox possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Clorox is currently being traded at a Forward P/E ratio of 31.05. For comparison, its industry has an average Forward P/E of 23.14, which means Clorox is trading at a premium to the group.
It's also important to note that CLX currently trades at a PEG ratio of 2.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Soap and Cleaning Materials industry stood at 3.11 at the close of the market yesterday.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 232, which puts it in the bottom 8% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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The Clorox Company (CLX) : Free Stock Analysis Report
