We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Clorox Stock Remains Worth Holding in Your Portfolio Now?
Read MoreHide Full Article
Key Takeaways
Clorox remains a portfolio hold, backed by essential brands and resilience despite cautious spending.
CLX's ERP rollout improves supply-chain visibility and demand planning, supporting gains and margin recovery.
Clorox is leaning on innovation, price-pack strategies and cash discipline to navigate competition.
The Clorox Company (CLX - Free Report) stands out as a leading name in the consumer staples space, anchored by a portfolio of trusted household brands that remain deeply embedded in everyday consumer needs. Despite a challenging operating backdrop marked by cautious consumer spending and category softness, the company continues to demonstrate resilience through brand strength, strategic execution and long-term growth initiatives.
Its essential product positioning, coupled with ongoing operational improvements, makes CLX a compelling hold for investors seeking stability with upside potential.
Here’s a closer look at the key factors supporting the case for retaining CLX stock.
Why CLX Remains Well Positioned for Growth
Clorox continues to benefit from a powerful brand portfolio anchored by household staples such as Clorox, Glad, Kingsford and Burt’s Bees. These well-established brands enjoy strong household penetration, repeat purchases and long-standing consumer trust, allowing the company to maintain shelf presence and pricing resilience even as shoppers become more value-conscious. This deep brand equity acts as a durable competitive moat, supporting steady demand and helping Clorox navigate economic cycles with greater stability than many peers.
Operational transformation is another major tailwind. The successful rollout of Clorox’s new ERP system marks a critical milestone in strengthening its digital and supply-chain backbone. While the transition created near-term disruptions, it is expected to unlock efficiencies, improve inventory visibility and enhance demand planning over time, supporting margin recovery and better execution.
Innovation remains central to Clorox’s long-term growth strategy. The company is actively introducing new products while expanding existing platforms across major categories, with a strong emphasis on delivering superior consumer value. By leveraging targeted price-pack architectures and consumer insights, Clorox aims to address shifting purchasing behaviors, regain market share and stimulate category growth. These innovation-led initiatives position the company to better capture demand as consumer conditions stabilize.
Clorox’s disciplined financial management further underpins its growth outlook. The company continues to focus on strong cash flow generation, cost control and prudent capital allocation, enabling it to reinvest in brands, innovation and operational improvements. This financial flexibility enhances shareholder confidence and provides Clorox with the resilience needed to manage near-term volatility while building a foundation for sustainable earnings growth in the long run.
Challenges That May Weigh on CLX’s Performance
Clorox continues to face near-term sales pressure stemming from muted category growth and the aftereffects of its ERP system implementation. While the company has largely stabilized order fulfillment, the earlier disruption led to temporary out-of-stocks and market share losses in certain categories. Although management expects gradual improvement as execution normalizes, rebuilding lost volume and shelf momentum may take time, keeping near-term organic sales growth under pressure.
The company is also operating in an increasingly competitive environment, particularly in value-sensitive categories such as trash bags, cat litter and select food products. Heightened promotional activity from branded peers and private-label players has intensified price competition. While Clorox remains disciplined in protecting long-term category value, this cautious approach could limit short-term share gains and weigh on pricing power.
Clorox remains exposed to evolving consumer behavior, as shoppers continue to prioritize value amid economic uncertainty. Ongoing trade-down trends, channel shifts and promotional sensitivity have resulted in negative price/mix dynamics. If these behaviors persist longer than anticipated, the company may face challenges in driving margin expansion and fully offsetting cost pressures, even as operational efficiencies improve.
CLX’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #3 (Hold) company have lost 30.7% in the past year, underperforming the Zacks Consumer Products – Staples industry’s 10.7% decline and the broader Consumer Staples sector’s 4.8% growth.
CLX Stock's One-Year Performance
Image Source: Zacks Investment Research
Is CLX Stock a Value Play?
Clorox shares are currently trading at a forward 12-month price-to-earnings (P/E) multiple of 17.51X, representing a modest discount to the industry average of 18.36X.
The Zacks Consensus Estimate for United Natural Foods' current financial-year sales and earnings indicates growth of 1.4% and 197.2%, respectively, from the prior-year levels. UNFI delivered a trailing four-quarter earnings surprise of 52.1%, on average.
The Vita Coco Company, Inc. (COCO - Free Report) develops, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for Vita Coco's current fiscal-year sales and earnings implies growth of 18% and 15%, respectively, from the year-ago reported figures. Vita Coco delivered a trailing four-quarter earnings surprise of 30.4%, on average.
McCormick & Company (MKC - Free Report) is a key manufacturer and distributor of spices, seasonings, specialty foods and flavors and has a Zacks Rank #2 (Buy) at present. MKC delivered a trailing four-quarter average earnings surprise of 2.2%.
The Zacks Consensus Estimate for MKC’s current financial-year sales and EPS implies growth of 1.6% and 2.4%, respectively, from the year-ago numbers.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Clorox Stock Remains Worth Holding in Your Portfolio Now?
Key Takeaways
The Clorox Company (CLX - Free Report) stands out as a leading name in the consumer staples space, anchored by a portfolio of trusted household brands that remain deeply embedded in everyday consumer needs. Despite a challenging operating backdrop marked by cautious consumer spending and category softness, the company continues to demonstrate resilience through brand strength, strategic execution and long-term growth initiatives.
Its essential product positioning, coupled with ongoing operational improvements, makes CLX a compelling hold for investors seeking stability with upside potential.
Here’s a closer look at the key factors supporting the case for retaining CLX stock.
Why CLX Remains Well Positioned for Growth
Clorox continues to benefit from a powerful brand portfolio anchored by household staples such as Clorox, Glad, Kingsford and Burt’s Bees. These well-established brands enjoy strong household penetration, repeat purchases and long-standing consumer trust, allowing the company to maintain shelf presence and pricing resilience even as shoppers become more value-conscious. This deep brand equity acts as a durable competitive moat, supporting steady demand and helping Clorox navigate economic cycles with greater stability than many peers.
Operational transformation is another major tailwind. The successful rollout of Clorox’s new ERP system marks a critical milestone in strengthening its digital and supply-chain backbone. While the transition created near-term disruptions, it is expected to unlock efficiencies, improve inventory visibility and enhance demand planning over time, supporting margin recovery and better execution.
Innovation remains central to Clorox’s long-term growth strategy. The company is actively introducing new products while expanding existing platforms across major categories, with a strong emphasis on delivering superior consumer value. By leveraging targeted price-pack architectures and consumer insights, Clorox aims to address shifting purchasing behaviors, regain market share and stimulate category growth. These innovation-led initiatives position the company to better capture demand as consumer conditions stabilize.
Clorox’s disciplined financial management further underpins its growth outlook. The company continues to focus on strong cash flow generation, cost control and prudent capital allocation, enabling it to reinvest in brands, innovation and operational improvements. This financial flexibility enhances shareholder confidence and provides Clorox with the resilience needed to manage near-term volatility while building a foundation for sustainable earnings growth in the long run.
Challenges That May Weigh on CLX’s Performance
Clorox continues to face near-term sales pressure stemming from muted category growth and the aftereffects of its ERP system implementation. While the company has largely stabilized order fulfillment, the earlier disruption led to temporary out-of-stocks and market share losses in certain categories. Although management expects gradual improvement as execution normalizes, rebuilding lost volume and shelf momentum may take time, keeping near-term organic sales growth under pressure.
The company is also operating in an increasingly competitive environment, particularly in value-sensitive categories such as trash bags, cat litter and select food products. Heightened promotional activity from branded peers and private-label players has intensified price competition. While Clorox remains disciplined in protecting long-term category value, this cautious approach could limit short-term share gains and weigh on pricing power.
Clorox remains exposed to evolving consumer behavior, as shoppers continue to prioritize value amid economic uncertainty. Ongoing trade-down trends, channel shifts and promotional sensitivity have resulted in negative price/mix dynamics. If these behaviors persist longer than anticipated, the company may face challenges in driving margin expansion and fully offsetting cost pressures, even as operational efficiencies improve.
CLX’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #3 (Hold) company have lost 30.7% in the past year, underperforming the Zacks Consumer Products – Staples industry’s 10.7% decline and the broader Consumer Staples sector’s 4.8% growth.
CLX Stock's One-Year Performance
Image Source: Zacks Investment Research
Is CLX Stock a Value Play?
Clorox shares are currently trading at a forward 12-month price-to-earnings (P/E) multiple of 17.51X, representing a modest discount to the industry average of 18.36X.
CLX P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to Consider
United Natural Foods (UNFI - Free Report) is a key distributor of natural, organic and specialty food and non-food products. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for United Natural Foods' current financial-year sales and earnings indicates growth of 1.4% and 197.2%, respectively, from the prior-year levels. UNFI delivered a trailing four-quarter earnings surprise of 52.1%, on average.
The Vita Coco Company, Inc. (COCO - Free Report) develops, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for Vita Coco's current fiscal-year sales and earnings implies growth of 18% and 15%, respectively, from the year-ago reported figures. Vita Coco delivered a trailing four-quarter earnings surprise of 30.4%, on average.
McCormick & Company (MKC - Free Report) is a key manufacturer and distributor of spices, seasonings, specialty foods and flavors and has a Zacks Rank #2 (Buy) at present. MKC delivered a trailing four-quarter average earnings surprise of 2.2%.
The Zacks Consensus Estimate for MKC’s current financial-year sales and EPS implies growth of 1.6% and 2.4%, respectively, from the year-ago numbers.