Will The Clorox Company’s (CLX) Earnings Grow In Next 12 Months?
The Clorox Company (NYSE:CLX) is predicted to grow its earnings per share by a robust double-digit 16.57% over the next three years. At a current EPS of $5.452, this growth rate means shareholders can expect an impending EPS of $6.355. To assess the reasonability of CLX’s earnings growth per share, we should look at its most recent growth rate delivered. See our latest analysis for CLX
How is Clorox going to perform in the future?
CLX is covered by 11 analysts who by consensus are expecting earnings to increase from today’s level of $5.452 to $6.355 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 16.57% over the next few years. During the same time revenue is expected to grow from $5,973M to $6,578M and profit is predicted to escalate from $703M to $820M in the next couple of years, growing by 16.57%. Moreover, future margins are predicted to be a respectable 12.48%.
Basis for the growth
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth indicates a change in tides or if the company continues to struggle reaching higher growth. CLX delivered a high double-digit growth rate in the past year, compared to the less exciting rate expected this year. This may indicate a more sustainable level of growth as the company comes off a high-growth period. On the other hand, a more pessimistic outlook questions the company’s ability to continue as a high performer.
Next Steps:
For CLX, there are three relevant factors you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is CLX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CLX is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CLX? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
