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Clorox (CLX) Stock Dips While Market Gains: Key Facts

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Clorox (CLX - Free Report) closed the latest trading day at $116.55, indicating a -1.17% change from the previous session's end. This change lagged the S&P 500's 1.2% gain on the day. Elsewhere, the Dow gained 1.58%, while the tech-heavy Nasdaq added 1.16%.

Prior to today's trading, shares of the consumer products maker had lost 10.02% over the past month. This has lagged the Consumer Staples sector's loss of 1.74% and the S&P 500's loss of 3.58% in that time.

The investment community will be paying close attention to the earnings performance of Clorox in its upcoming release. In that report, analysts expect Clorox to post earnings of -$0.20 per share. This would mark a year-over-year decline of 121.51%. At the same time, our most recent consensus estimate is projecting a revenue of $1.3 billion, reflecting a 25.53% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.14 per share and revenue of $6.98 billion, indicating changes of -18.66% and -5.48%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to 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 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 29.51% downward. Clorox is currently a Zacks Rank #5 (Strong Sell).

Investors should also note Clorox's current valuation metrics, including its Forward P/E ratio of 28.5. This represents a premium compared to its industry's average Forward P/E of 22.71.

It's also important to note that CLX currently trades at a PEG ratio of 2.86. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Soap and Cleaning Materials industry was having an average PEG ratio of 3.19.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 237, this industry ranks in the bottom 6% of all industries, numbering over 250.

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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