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Clorox (CLX) Stock Declines While Market Improves: Some Information for Investors

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Clorox (CLX - Free Report) closed the most recent trading day at $147.66, moving -1.88% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.32%. Elsewhere, the Dow saw an upswing of 0.68%, while the tech-heavy Nasdaq appreciated by 0.2%.

Heading into today, shares of the consumer products maker had lost 1.43% over the past month, lagging the Consumer Staples sector's gain of 1.81% and the S&P 500's gain of 5.11% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Clorox in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.40, reflecting a 7.28% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.93 billion, indicating a 0.52% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.58 per share and revenue of $7.32 billion, indicating changes of +9.63% and -0.98%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Clorox. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 past month, the Zacks Consensus EPS estimate has remained steady. Currently, Clorox is carrying a Zacks Rank of #2 (Buy).

Investors should also note Clorox's current valuation metrics, including its Forward P/E ratio of 26.98. This valuation marks a premium compared to its industry's average Forward P/E of 25.11.

We can also see that CLX currently has a PEG ratio of 2.27. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Soap and Cleaning Materials industry held an average PEG ratio of 3.34.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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