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

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In the latest trading session, Clorox (CLX - Free Report) closed at $136.46, marking a -1.43% move from the previous day. This change lagged the S&P 500's 0.94% loss on the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 1.53%.

Prior to today's trading, shares of the consumer products maker had lost 7.95% over the past month. This has lagged the Consumer Staples sector's loss of 1.67% and the S&P 500's gain of 1.85% in that time.

Investors will be hoping for strength from Clorox as it approaches its next earnings release. In that report, analysts expect Clorox to post earnings of $1.36 per share. This would mark year-over-year growth of 46.24%. Our most recent consensus estimate is calling for quarterly revenue of $1.81 billion, up 3.94% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.87 per share and revenue of $7.49 billion, which would represent changes of +15.32% and +1.35%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Clorox. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, 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. Clorox is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Clorox is holding a Forward P/E ratio of 23.58. For comparison, its industry has an average Forward P/E of 23.12, which means Clorox is trading at a premium to the group.

Also, we should mention that CLX has a PEG ratio of 2.01. 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. The Soap and Cleaning Materials industry currently had an average PEG ratio of 3.31 as of yesterday's close.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% 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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