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Will Innovation and Digital Expansion Efforts Drive Clorox's Growth?
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Key Takeaways
Clorox is expanding its health and hygiene portfolio through the GOJO acquisition.
Clorox completed its digital transformation, with productivity benefits expected from fiscal 2027.
Clorox is increasing innovation spending to improve brand relevance and regain market share.
The Clorox Company (CLX - Free Report) is strengthening its business through strategic portfolio actions, innovation, productivity initiatives and improved execution as it navigates a challenging consumer environment. The company’s strategy is increasingly focused on rebuilding market share, enhancing brand superiority and creating a stronger operating platform for sustainable growth. Portfolio expansion is also playing an important role, with the acquisition of GOJO Industries significantly broadening Clorox’s presence in the health and hygiene market.
Clorox has completed its five-year digital transformation program, including the rollout of its U.S. enterprise resource planning system. The company is now shifting its focus from implementation to optimization. Better demand planning, lower inventory, automation and improved order-to-cash processes are expected to generate productivity benefits beginning in the latter part of fiscal 2027 and building into fiscal 2028. The enhanced digital infrastructure should also support stronger e-commerce execution and improve collaboration with retail partners.
Innovation remains a key pillar of Clorox’s growth strategy. The company has increased innovation spending and plans further investment focusing on areas such as health and wellness, pet care, convenience and value. Clorox is also combining product innovation with packaging improvements, targeted promotions, stronger advertising and optimized price-pack architecture to improve brand relevance and regain market share.
The GOJO acquisition has further strengthened Clorox’s health and hygiene portfolio, which now accounts for more than half of net sales on a combined basis. GOJO is expected to contribute significantly to fiscal 2027 sales growth, while Clorox sees opportunities to generate revenue synergies over time. The company is taking a disciplined approach to integration while leveraging GOJO’s capabilities and market position to expand its presence in attractive health and hygiene categories.
Overall, Clorox is concentrating on strengthening its brands, accelerating innovation, expanding its health and hygiene portfolio, improving digital capabilities and driving productivity. These initiatives are designed to enhance consumer value, support market-share recovery and create a more efficient operating platform for long-term growth.
CLX’s Price Performance, Valuation & Estimates
Shares of Clorox have lost 19.4% in the past six months against the industry’s growth of 3.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, CLX trades at a forward price-to-earnings ratio of 13.62X compared with the industry’s average of 18.11X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CLX’s fiscal 2027 and fiscal 2028 earnings implies year-over-year growth of 6% and 8.9%, respectively. The company’s EPS estimate for fiscal 2026 and fiscal 2027 has been stable in the past 30 days.
Image Source: Zacks Investment Research
Clorox stock currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Chefs' Warehouse's current financial-year sales indicates growth of 10.8% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Lamb Weston (LW - Free Report) , which is a global manufacturer, marketer and distributor of value-added frozen potato products, currently carries a Zacks Rank #2 (Buy).
The consensus estimate for Lamb Weston’s current financial-year sales is expected to drop 1.8% from the year-ago reported figure. LW delivered a trailing four-quarter earnings surprise of 24.6%, on average.
Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED delivered an average earnings surprise of 58.2% in the last reported quarter.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 27.3% from the year-ago number.
View the Zacks #1 Rank List
Image: Bigstock
Will Innovation and Digital Expansion Efforts Drive Clorox's Growth?
Key Takeaways
The Clorox Company (CLX - Free Report) is strengthening its business through strategic portfolio actions, innovation, productivity initiatives and improved execution as it navigates a challenging consumer environment. The company’s strategy is increasingly focused on rebuilding market share, enhancing brand superiority and creating a stronger operating platform for sustainable growth. Portfolio expansion is also playing an important role, with the acquisition of GOJO Industries significantly broadening Clorox’s presence in the health and hygiene market.
Clorox has completed its five-year digital transformation program, including the rollout of its U.S. enterprise resource planning system. The company is now shifting its focus from implementation to optimization. Better demand planning, lower inventory, automation and improved order-to-cash processes are expected to generate productivity benefits beginning in the latter part of fiscal 2027 and building into fiscal 2028. The enhanced digital infrastructure should also support stronger e-commerce execution and improve collaboration with retail partners.
Innovation remains a key pillar of Clorox’s growth strategy. The company has increased innovation spending and plans further investment focusing on areas such as health and wellness, pet care, convenience and value. Clorox is also combining product innovation with packaging improvements, targeted promotions, stronger advertising and optimized price-pack architecture to improve brand relevance and regain market share.
The GOJO acquisition has further strengthened Clorox’s health and hygiene portfolio, which now accounts for more than half of net sales on a combined basis. GOJO is expected to contribute significantly to fiscal 2027 sales growth, while Clorox sees opportunities to generate revenue synergies over time. The company is taking a disciplined approach to integration while leveraging GOJO’s capabilities and market position to expand its presence in attractive health and hygiene categories.
Overall, Clorox is concentrating on strengthening its brands, accelerating innovation, expanding its health and hygiene portfolio, improving digital capabilities and driving productivity. These initiatives are designed to enhance consumer value, support market-share recovery and create a more efficient operating platform for long-term growth.
CLX’s Price Performance, Valuation & Estimates
Shares of Clorox have lost 19.4% in the past six months against the industry’s growth of 3.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, CLX trades at a forward price-to-earnings ratio of 13.62X compared with the industry’s average of 18.11X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CLX’s fiscal 2027 and fiscal 2028 earnings implies year-over-year growth of 6% and 8.9%, respectively. The company’s EPS estimate for fiscal 2026 and fiscal 2027 has been stable in the past 30 days.
Image Source: Zacks Investment Research
Clorox stock currently carries a Zacks Rank #3 (Hold).
Stocks to Consider in the Consumer Staples Space
The Chefs' Warehouse, Inc. (CHEF - Free Report) , which is a distributor of specialty food products in the United States, 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 Chefs' Warehouse's current financial-year sales indicates growth of 10.8% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Lamb Weston (LW - Free Report) , which is a global manufacturer, marketer and distributor of value-added frozen potato products, currently carries a Zacks Rank #2 (Buy).
The consensus estimate for Lamb Weston’s current financial-year sales is expected to drop 1.8% from the year-ago reported figure. LW delivered a trailing four-quarter earnings surprise of 24.6%, on average.
Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED delivered an average earnings surprise of 58.2% in the last reported quarter.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 27.3% from the year-ago number.