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Clorox (CLX) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Clorox (CLX - Free Report) ended the recent trading session at $121.99, demonstrating a -0.66% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.17%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.27%.

Prior to today's trading, shares of the consumer products maker had lost 7.43% over the past month. This has lagged the Consumer Staples sector's loss of 5.48% and the S&P 500's loss of 3.95% in that time.

Investors will be eagerly watching for the performance of Clorox in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be -$0.20, reflecting a 121.51% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.4 billion, indicating a 19.37% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.22 per share and revenue of $6.98 billion, which would represent changes of -17.09% and -5.48%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Clorox. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 26.91% decrease. At present, Clorox boasts a Zacks Rank of #5 (Strong Sell).

With respect to valuation, Clorox is currently being traded at a Forward P/E ratio of 29.09. This represents a premium compared to its industry's average Forward P/E of 23.1.

It is also worth noting that CLX currently has a PEG ratio of 2.92. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Soap and Cleaning Materials was holding an average PEG ratio of 3.38 at yesterday's closing price.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 220, finds itself in the bottom 13% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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