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Clorox (CLX) Dips More Than Broader Markets: What You Should Know

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Clorox (CLX - Free Report) closed the most recent trading day at $212.52, moving -1.94% from the previous trading session. This move lagged the S&P 500's daily loss of 0.81%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 1.27%.

Coming into today, shares of the consumer products maker had lost 8.23% in the past month. In that same time, the Consumer Staples sector gained 3.44%, while the S&P 500 gained 5.06%.

CLX will be looking to display strength as it nears its next earnings release. In that report, analysts expect CLX to post earnings of $2.39 per share. This would mark year-over-year growth of 50.31%. Our most recent consensus estimate is calling for quarterly revenue of $1.74 billion, up 15.8% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.76 per share and revenue of $6.94 billion, which would represent changes of +5.43% and +3.3%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CLX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, CLX is currently trading at a Forward P/E ratio of 27.93. This valuation marks a premium compared to its industry's average Forward P/E of 24.66.

We can also see that CLX currently has a PEG ratio of 3.98. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Soap and Cleaning Materials was holding an average PEG ratio of 3.88 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 51, 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.

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